If you dedicated a year and a half of your life to write a fictitious screenplay for a friend that was derived from factual events based on said friend's life, what would you consider fair compensation? What kind of clauses would you have on the contract? Obviously we're talking about deferred payment based on the screenplay getting picked up. So before you answer that question, let's hypothesize and say that this script gets picked up in Hollywood by a well known and respected producer/director. Then the film is made with some A-list stars and trumps the box office worldwide. Does the writer have the right to claim potential royalities (residuals)? And if so, does that include merchandise as well? One other super important point to mention is that one of the support characters is based entirely on the writer. I loathe contracts but know it's a necessary evil if you want your scripts made into films! For the record, I do already have a contract in place.
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If it's totally based on a deferred basis, I would definitely push for a % of revenues generated including box office (theatrical sales), DVD rental/sales, PPV, On Demand, TV Network/Cable airings, Downloads (Netflix/Online), merchandising, and foreign/international release (rights/publishing). These elements are totally negotiable. However, if you've already dedicated this much time and effort for free, shouldn't your time and effort (as well as your ideas/content/copyright) be rewarded if the project (hypothetically speaking) becomes successful?
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For a first time writer without representation, there will likely be no fair compensation. Having said that, check the producer/production company's track record. If they have no track record, you have some bargaining power by pointing out that they are an unproven commodity. Asking for a $1.00 limited option is a start. In the option, asking for a 2 1/2% payment of the production budget is not out of line. The less they want to pay up front, the more you should ask for back end payments.
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@Steven, good points. I would also recommend having an entertainment lawyer/manager involved if possible (if you have access to those resources).
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Assuming all your examples you should accept no less then WGA minimum when the script is sold. A-list actors and a well respected producer and director I would accept no less than 5% of the below the line budget or $250,000 whichever is higher. Yes, the write has the right to claim residuals. This is where the WGA comes in. They have their set minimums but a writer has the right to negotiate for more. It’s very rare that a writer gets a percentage of merchandise. You can ask. It is not at all important to mention (in negations) the origin of any character. Not at all relevant. Since you loath contracts so you COULD tell them that and make a hand-shake deal based on the good faith of the producer and studio. A contract is simply an agreement between two parties so they are all clear on what each other wants. that’s not really a bad thing.
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You write the script, you own it. What do you mean it was "written for" a friend? Like ghost writing? What is being picked up? You are going to film it and sell the whole project? In that case your deferred pay should be similar to what it would have been to hire a writer for a screen play, give or take some. % profit sharing is an option that is always negotiable with everyone. Or you are going to sell the script only - no production? In this case, you own it already so you can sell it for whatever without needing this other person to have a cut. I don't think I understand the full situation.
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I would revisit the contract. You would most likely be due a percentage of royalties, because you wrote the script.
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Look up the Writers Guild minimum for that project, add ten percent [10%] to that and have your writing fee be either the WGA+10% or five percent [5%] of the production budget, whichever is higher. Then you can defer as much as you like to still give you the money you need to be able to write the project, and you have the rest of it waiting for you if/when the project gets made. Your Deal Memo for the writing can include deferred and also a percentage -- it's a formula you and the producer can work out between you. If you give away credit, then you should get more money and percentage. Best of luck on the project!
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Evette did say in her example that there were A-list stars and a well known and respected producer and director. I think that in that example it would be safe to assume that the script would fall under the Writers Guild.
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Joanne, I did not assume. Evette said, "So before you answer that question, let's hypothesize and say that this script gets picked up in Hollywood by a well known and respected producer/director.Then the film is made with some A-list stars and trumps the box office worldwide." She was asking us to hypothesize. I did, making no assumptions at all. I agree with you, since she already has a contract that is what must be followed. But Evette asked us to answer based on her hypothetical.
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Hey Joanne and everyone, sorry for the delay in responding! Had a few things to attend to but now I'm back (bit of a family crisis! :) ). Thank you everyone so much for responding. I've read all comments and there's some really sound advice. I'm extremely grateful to all. Thank you, thank you. Some of the finer points for consideration: - I signed over copyright before I completed the script. This was my suggestion due to the sensitive nature of the story. I never felt any 'ownership' to it. It felt more honorable to sign over copyright. I understand what this means but believe me I received quite a few 'tut tuts' from industry friends. However I would do it again for this project. In saying that at one stage I was asked to sign over moral rights, which I adamantly refused. Has anyone ever been faced with this clause before? - I'm based in Australia. And the story is based in Oz, England and Greece with the aim of selling it in the US. So I'm not sure how international union works on that level. - My cut is 25% on the sale of the script and royalities. This feels extremely fair to me. (There's actually three of us involved in this project - 2 people who provided half of the story each and me as the writer). - As far as one of the characters being based on me, I wasn't sure if that had any particular value or not. Apparently not. That's cool. So ultimately I was seeking advice as I haven't been down this path before. I've been writing scripts and acting for years but this script has taken on a whole new level for me professionally speaking. Thanks again guys. You rock!
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I just want to add I wasn't expecting this much response. It proves that this fickle industry we all love is full of helpful people. D Marcus I particularly like your comment "A contract is simply an agreement between two parties so they are all clear on what each other wants. that’s not really a bad thing." So true. That really helped me put it into perspective. Cheers.
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Asked to sign over moral rights? I have never heard of moral rights. Can you explain in general what moral rights are?
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Forgive me Joanne. I was unaware of any Hollywood producers making films with A-list stars working non union. So it seemed safe to assume the Guild would be involved. Can you tell me a few films made non union starring A-list stars and produced by major producers?
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Joanne, thanks for that. I've been a WGA member for many years. I was curious about your statement about A-list talent doing non union films. I understand union actors do low budget films and the SAG low budget agreement allows that. I would change my word "assume" to "bet"; it's a safe bet that a production made by a well respected producer using A-list talent would be a WGA signatory. I apologize for using the incorrect word - word usage is important. Dan, I guess it was a matter of word use. I understand what a morals clause is - Evette used moral "rights"; a right she refused to sign over to the producer. I did some research and found the answer. It isn't about making any changes - all scripts are changed. In publishing and the visual arts it does mean no changes can be made without permission. In the screenplay it has to do with the right to attribution and content changes to the finished film for distribution purposes. For example; removing a nude scene to allow distribution in Muslim territories or "foul" language for TV rights.
As a "first time" writer I'm still very comfortable with the existing contract. Gotta start somewhere. Money is always welcome but a writer's credit is more important to me and the film being made for the potential opportunities it could lead too. However I'd find it hard to swallow if I didn't make anything from this film when the producer's were. Ultimately writing a script is about getting it made into a film so there's always going to be some kind of risk. And no two projects are ever the same so I'm finding learning the business is ever constant. Moreover I look forward to being represented. That will definitely lift the game for me. I'm curious how gaining an agent/manager works in the US. Here in Oz it's a vicious circle. You have to already have a professional credit before an agent will even look at you. And unfortunately short films don't count (I know this from experience). As far as moral rights go apparently it happens quite a lot. i.e. producers request writers to sign over moral rights. But from the research I conducted it's unethical to make this kind of request. It's an automatic right for a writer to maintain. So even though it happens it doesn't make it kosher. Here's a quote from one of the articles I read on moral rights: "affording artists three basic rights: the right to have their name on their work, the right to not have their name attached to someone else’s work and the right to protect themselves from abuse of their work. They boil down to the right to safeguard attribution and integrity and that spells r-e-p-u-t-a-t-i-o-n." (source: Ian David, member of Council of Patrons of the Arts Law Centre Australia) These rights apply to the writer, producer and director and include the screenplay and completed film. So why would I sign over complete moral rights to the producer? Changes to the finished film for distribution purposes I understand and agree to. Thanks Joanne for taking the time to explain your understanding of the business. I've learnt a lot from this thread. Writing this screenplay was an interesting journey to say the least. I'd be comfortable if the script was never made into a film because of what I've learnt along the way. It's a script I'm very proud of and as far as the uniqueness of the story goes I've never come across anything like it, which is partly why I was happy to go down this path.
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As I researched "moral rights" almost everything I found was from Australia. Seems to be a standard there. I learned something, thank you.
Thanks guys. @Dan and @D are you saying signing over moral rights is standard practice in the US? You learn something new everyday. Best to accept it I suppose. Does this in any way compromise the writer's credit?
Yes, Evette, signing over moral rights is standard with screenplays and TV. Not in the theater or the visual arts. In film and TV the scripts are changed constantly; new writers are hired, directors change things, producers change things, even actors will change lines and character traits. If every, single change had to be approved by the original writer it would severely hold back production - you know how writers can be. Being properly credited is different than moral rights of content. While you don't like contracts, the contract is how the credit agreement is made between the writer and the producer. And it's important. This is where the WGA helps. A writer who is working under the agreement has an outside source to help protect their screen credit and thus their residual payments. A writer who is not working under the WGA agreement just needs to more vigilant when negotiating for screen credit.
I beg to disagree, sometimes it's better not to have a contract. I have never heard of a "morals clause" here in the US.
Without a contract how does one resolve an issue with the producer?
Exactly D. That's why I'm pursuing an article on this very subject for my online mag (www.ozemag.com). The article will cover contracts from a writer's perspective, manager's perspective and producer's perspective. And PJ above has agreed to an interview - thank you PJ! So if any of you have any specific questions for me to ask please fire away. It will be based on the Hollywood industry (not Australia where I'm based).
Nice eMag, Evette. I've bookmarked it. I look forward to reading your article on this subject. I would ask PJ in what cases is it better to not have a contract between a producer and writer in the "Hollywood" industry. and how is a dispute or even a misunderstanding resolved without anything in writing.