Option Contract Question

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  • Option Contract Question

    Hey Everyone! Question about option contracts for books. Scenario is I'm simply acquiring the rights to an author's book. Then I'll be writing a script based on it. That author is afforded a set % of the sale of the script. That is the exercising of the option. My question is, as the author has asked me, what other streams of income does the author have after the initial sale? Do they setup royalties, payments, producing fees, etc. with someone else on down the line? Is that a separate negotiation? Or is the author only entitled to the money from the script sale? Basically they want to make sure there's more to their financial interests than just the % of the script sale. I thought it was a valid question and I want to get it answered for them. Can anybody point me in the right direction? Thanks!!!

  • #2
    Re: Option Contract Question

    The right/only direction is in the direction of an attorney to help you iron out the details.

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    • #3
      Re: Option Contract Question

      I agree you should speak with an experienced entertainment attorney. The problem is not only not knowing the answers but also not knowing all the questions that should be asked.

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      • #4
        Re: Option Contract Question

        As others have wisely noted, definitely try to get an ent. lawyer involved for your sake and the author's.

        In more general terms, usually the rights to a book, graphic novel, etc. are picked up/bought separately. The film & TV rights to the book are separate from the script. Then a deal is also made for the script in which the screenwriter gets paid to adapt.

        A lot depends on what the author wants. The author could demand millions along with a boat, car and a plane and ask to be the producer, director, star, etc. That might be a ridiculous request -- it would be actually -- but they can technically ask for that.

        A decent rule of thumb is the author gets paid (a "fair market price") for the rights to their book. That's it. One could define that amount based a little on the size/budget of the project, as one does many times with a script, and also the success of the book, of course. But you shouldn't really be tying what they get paid with what you, the script writer, gets paid. Two separate things in the vast majority of cases, especially if you and you alone are writing the script.

        This is, of course, the type of stuff we list on our main site all the time. The book rights are picked up or optioned and the author is paid in some fashion. Then a month later, a year later or whenever, a writer is brought in and paid separately to actually adapt the material itself. Maybe even multiple writers are eventually brought in over time and all paid separately from what the book author every got or gets for the rights to the material.

        Again, try to get a lawyer involved who can deal with their requests and make sure all is taken care of properly.
        Will
        Done Deal Pro
        www.donedealpro.com

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