Entertainment Final Flashcards
(141 cards)
1
Q
What are the two purposes of US copyright law?
A
To promote the progress of science and useful arts by granting authors and creators exclusive rights for a limited time (U.S. Constitution, Art. I, Sec. 8).
AND;
To incentivize creative expression while ensuring that works eventually enter the public domain for public use
2
Q
What are common law copyright rights?
A
Prior to federal copyright protection, unpublished works were protected under common law, which recognized authors’ rights against unauthorized copying.
Once published, a work had to comply with federal copyright formalities under the 1909 Act to retain protection.
3
Q
What was the duration of copyright protection under the 1909 Act? What is the duration of copyright protection under the 1976 Act?
A
Under the 1909 Act: Initial term of 28 years from registration, with a renewal period of another 28 years (total of 56 years). If not renewed, the work entered the public domain.
Under the 1976 Act: Life of the author plus 70 years for works created on or after January 1, 1978. For works made for hire, protection lasts 95 years from publication or 120 years from creation, whichever is shorter.
4
Q
What formalities did a copyright owner have to follow under the 1909 Act to insure copyright ownership in a work? What formalities must a copyright owner follow under the 1976 Act?
A
1909 Act: Required formalities included registration, publication with proper copyright notice, and renewal for the full term of protection.
1976 Act: Copyright protection is automatic upon fixation in a tangible medium. Registration is not required but is beneficial for legal enforcement, such as bringing an infringement lawsuit.
5
Q
When were sound recordings granted copyright protection?
A
Federal copyright protection for sound recordings began in 1972.
Prior to 1972, recordings were protected by state common law copyright.
6
Q
What is significant about the date January 1, 1978?
A
The 1976 Copyright Act took effect, changing copyright duration, formalities, and protections.
Works created on or after this date receive automatic copyright protection without registration or notice requirements.
7
Q
When does copyright protection attach for a copyrightable work created under the 1976 Act?
A
Protection automatically attaches upon fixation in a tangible medium of expression, such as writing, recording, or digital storage.
8
Q
What does it mean to say that the Copyright Office registration of the copyright in a protectable work creates a rebuttable presumption of the copyright’s validity?
A
If a copyright owner registers their work before or within five years of publication, courts presume the copyright is valid.
However, this presumption can be challenged by evidence showing the work is not original or protectable.
9
Q
What does “original” mean in copyright law?
A
A work is original if it is independently created by the author and possesses at least a modicum of creativity.
10
Q
What right(s) are not granted to the copyright owner of a sound recording that are granted to the copyright owner of a musical work? How does the Music Modernization Act change this?
A
Unlike musical composition owners, sound recording owners do not have the public performance right (except for digital audio transmissions).
The Music Modernization Act (2018) improved mechanical licensing for digital music and expanded rights for pre-1972 sound recordings.
11
Q
What two copyrights are potentially available for music-related works?
A
Musical composition copyright (covers melody, lyrics, notation).
Sound recording copyright (covers the actual recorded performance of the composition).
12
Q
What is a phonorecord?
A
A phonorecord is any physical or digital medium in which sound recordings are fixed, such as CDs, vinyl records, MP3 files.
13
Q
What is a work for hire (also called a work made for hire)? What are the two types of work for hire under the 1976 Act?
A
A work made for hire is:
1. A work created by an employee within the scope of employment.
2. A specially commissioned work, but only if there is a written agreement and it falls into specific categories (e.g., contributions to collective works, audiovisual works, translations, etc.).
14
Q
How can a copyright owner transfer all or a portion of ownership in that copyright to a third party/entity?
A
Assignment (transfers all rights permanently).
Exclusive license (grants limited but enforceable rights).
Non-exclusive license (allows multiple parties to use the work, no exclusive ownership change).
15
Q
What is the first sale doctrine?
A
After the first lawful sale of a copyrighted work, the owner of the copy has the right to resell, give away, or otherwise dispose of that copy without the copyright owner’s permission.
16
Q
Can the federal government own the copyright in government-created works?
A
No. Works created by the U.S. government are not copyrightable (17 U.S.C. § 105). However, the government may own copyrights assigned to it by third parties.
17
Q
- What must a plaintiff show to prove copyright infringement?
A
Plaintiff must show:
1. Ownership of a valid copyright.
2. Copying of original elements of the work.
18
Q
What is substantial similarity?
A
The defendant’s work must copy protectable elements of the plaintiff’s work and be more than a trivial resemblance.
19
Q
What is access?
A
The defendant must have had an opportunity to view or hear the plaintiff’s work before creating their own.
20
Q
What is fair use?
A
Fair use is: A defense to copyright infringement based on: 1. Purpose and character (e.g., educational, transformative use); 2. Nature of the copyrighted work (factual vs. creative); 3. Amount used relative to the whole; 4. Effect on market value of the original work.
21
Q
What is a parody?
A
A parody is a transformative work that mimics the original to critique or comment on it, often protected under fair use.
22
Q
What is VARA?
A
The Visual Artists Rights Act (VARA) grants limited moral rights to authors of visual artworks
23
Q
What are the moral rights recognized by VARA?
A
- Right of attribution (to be credited as the author); 2. Right of integrity (to prevent distortion or destruction of the work).
24
Q
What works are covered by VARA?
A
Only visual artworks like paintings, drawings, sculpture, and photographs in limited editions are protected.
25
How do you protect an idea that has not been reduced to a tangible medium of expression?
Ideas are not protected by copyright. Protection may be sought through: 1. Contracts (e.g., non-disclosure agreements, idea submission agreements); 2. Trade secret law if confidentiality is maintained; 3. Patent law if the idea qualifies as an invention.
26
What is the US Copyright Office’s stand on the copyrightability of works created by artificial intelligence (AI)?
The Copyright Office does not register works created solely by AI (e.g., Thaler v. Perlmutter); However, human-authored contributions to AI-assisted works may be protected.
27
Why are credits in the entertainment industry important?
Credits are crucial because they serve as recognition for individuals' contributions, impact professional reputation, and influence future employment opportunities. They also affect residuals and union requirements.
28
What is a possessory credit?
A possessory credit is a special credit given to a director or producer that signifies a high level of creative control over a film, such as "A Film by [Director's Name]."
29
What is the Lanham Act?
The Lanham Act is the primary federal trademark statute in the U.S., protecting against unfair competition
30
What is Section 43(a) of the Lanham Act?
Section 43(a) (15 U.S.C. § 1125(a)) allows civil action against false designations of origin, false descriptions, or misleading advertising that could cause consumer confusion about affiliation, sponsorship, or the origin of goods and services.
31
What element must be proved in a Sec. 43(a) claim that is not required to be proved in a right of publicity claim?
A Section 43(a) claim under the Lanham Act requires proving consumer confusion regarding the origin or endorsement of goods/services. A right of publicity claim focuses more on the unauthorized commercial use of a person's identity without necessarily proving confusion
32
What is the holding of Dastar?
In Dastar Corp. v. Twentieth Century Fox Film Corp., 539 U.S. 23 (2003), the Supreme Court ruled that the Lanham Act does not protect ideas or works that have entered the public domain from being repackaged and sold under a different name. This decision significantly limited claims of "reverse passing off" under the Lanham Act
33
What is a person’s persona?
A person’s persona includes their name, likeness, voice, signature, and other distinctive elements of their identity that can be commercially exploited.
34
What is a descendible right of publicity?
A descendible right of publicity allows heirs or estates to control and profit from a deceased person's likeness for a set number of years after death. The duration varies by state; for example, California grants 70 years, Indiana 100 years, and New York 40 years.
35
What is the purpose of a trademark?
Trademarks protect brand identity by distinguishing a company’s goods or services from competitors. They prevent consumer confusion and protect the commercial value of a brand
36
How does a person obtain rights in a trademark (on both the state and federal levals)?
State Level: By using the mark in commerce within the state.
Federal Level: By registering the mark with the USPTO, which grants nationwide protection and legal presumptions of ownership.
37
What is the holding of Rogers v. Grimaldi?
In Rogers v. Grimaldi, 875 F.2d 994 (2d Cir. 1989), the court held that using a celebrity's name in an artistic work (such as a movie title) is protected under the First Amendment unless it has no artistic relevance or explicitly misleads consumers about the work’s content.
38
What is the “expressive” exception to the right of publicity?
The expressive exception allows the use of a person’s identity in news, entertainment, or creative works if it conveys information rather than solely exploiting the person’s commercial value. The transformative test is often applied to determine if the use adds significant creative elements.
39
What is an option agreement?
An option agreement gives a buyer (e.g., a studio) the exclusive right to purchase a script or life story rights within a specified period. It allows development without immediate full commitment
40
What is a life rights agreement?
A life rights agreement is a contract where a person sells the rights to their personal story for adaptation into a film, TV show, or book. It typically includes cooperation clauses, fictionalization allowances, and financial compensation
41
What is a morals clause?
A morals clause allows a contract to be terminated if a party engages in behavior that could damage the other party's reputation, such as criminal activity or public scandal.
42
What does a talent agent do?
A talent agent procures employment for clients, such as actors, musicians, or athletes. In California, they are legally required to be licensed and regulated under the California Talent Agency Act. Agents negotiate contracts and take a commission (typically 10%) on their clients’ earnings
43
What does a talent manager do?
A talent manager focuses on guiding a client’s career rather than directly procuring employment. They provide strategic advice, branding, and career development but are not legally permitted to obtain work for their clients unless they operate within a safe harbor provision with a licensed agent.
44
In California, only talent agents can “procure” employment for their clients. If a client accuses his/her manager of procuring employment for him/her, what California agency first hears the matter?
In California, only talent agents can “procure” employment for their clients. If a client accuses his/her manager of procuring employment for him/her, what California agency first hears the matter?
The California Labor Commissioner (Division of Labor Standards Enforcement) handles disputes involving unauthorized employment procurement by talent managers
45
If that California agency finds that the talent manager has violated that California statute, what are the remedies available to that agency?
The Labor Commissioner can: (1) Void contracts between the client and manager; (2) Order disgorgement of commissions; (3) Impose penalties for violating the Talent Agency Act.
46
The California statute governing talent agents states that negotiations for record deals do not have to be conducted by licensed agents. Why?
The California Talent Agency Act exempts record deal procurement from the agent licensing requirement. This allows managers, lawyers, or other representatives to negotiate recording contracts. However, this exemption does notextend to other agreements like music publishing or video production deals, which must be handled by a licensed agent.
47
Talent agent/talent manager agreements often have “sunset clauses”. What are sunset clauses?
A sunset clause allows an agent to continue receiving commissions for a period of time after the contract ends, usually for deals they procured or negotiated while under contract. This protects agents when their former clients continue to benefit from deals they arranged
48
Very few states have statutes like the one in California governing talent agents, but all other states have a law that does govern talent agents. Generally, what law is that?
Most states regulate talent agents under general employment agency laws, rather than having a separate Talent Agency Act. Examples include: (1) Illinois Private Employment Agency Act (225 ILCS 515); (2) New York’s General Business Law, Section 171-190, which governs employment agencies.
49
What is the purpose of the California Coogan Act?
The Coogan Act (California Family Code §§ 6750-6753) was enacted to protect child performers' earnings. It requires that 15% of a minor’s earnings be set aside in a Coogan Trust Account, which cannot be accessed until the minor turns 18. The Act also provides a court approval process to prevent minors from disaffirming contracts.
50
What is the holding of DeHavilland v. Warner Bros.?
In De Havilland v. Warner Bros., 67 Cal. App. 2d 225 (1945), the California Court of Appeal ruled that Warner Bros. could not indefinitely extend Olivia de Havilland’s contract due to suspension periods. This case helped limit restrictive long-term studio contracts and led to greater freedom for actors.
51
Most jurisdictions allow a minor to disaffirm a contract at will. But in what situation will a minor not be allowed to disaffirm under most state laws?
A minor cannot disaffirm a contract if; (1) The contract was court-approved, such as under the Coogan Act; (2) The minor’s parent or guardian co-signed, making them liable (e.g., Berg v. Traylor case); (3) Certain labor laws prohibit disaffirmance, like Illinois' law barring minors from voiding pre-approved talent contracts
52
What is an advance in a book publishing agreement?
An advance is an upfront payment made by the publisher to the author before book sales begin. It is typically based on projected earnings and is recoupable from future royalties
53
What is the difference between a recoupable advance and a non-refundable advance?
Recoupable advance: The author must earn back the advance through book sales before receiving further royalties.
Non-refundable advance: The author keeps the money regardless of sales performance (rare in traditional publishing).
54
What is a cross-collateralization clause and why do authors want to avoid it unless they can negotiate it as a “negative” cross-collateralization clause?
A cross-collateralization clause (also called "basketing") allows the publisher to recoup an author's advance from multiple books or rights deals, meaning if one book underperforms, the publisher can take royalties from another book to cover the loss.
A negative cross-collateralization clause ensures that each book’s earnings are separately accounted for.
55
What are the typical payment schedules publishers use to pay an advance to an author?
Advances are typically paid in installments, often: 1. On signing the contract, 2. On manuscript acceptance, 3. On publication, 4. (Sometimes) On paperback release
56
What circumstances might increase the agreed-upon royalty paid to authors for books sold?
Higher royalty rates may be negotiated for higher sales thresholds, special editions, or direct-to-consumer sales.
E-books may have a different royalty rate (often 25%)
57
What situations might be negotiated into an agreement that would require the publisher to make bonus payments to an author?
Bestseller bonuses (e.g., hitting the New York Times bestseller list); Sales milestones (e.g., 100,000 copies sold); Film or TV adaptation rights deals.
58
What is a reserve against returns clause?
Publishers withhold a portion of royalties to account for potential book returns from retailers. This protects publishers from overpaying authors when unsold books are returned
59
Publishers will generally be required to publish a book if the manuscript is acceptable in form and content. This standard would seem to give a publisher unfettered and absolute discretion to publish or not. But various court decisions have added certain requirements to that standard. What are those requirements?
Publishers must make reasonable efforts to publish once the manuscript is accepted. Courts have ruled against publishers who failed to properly edit, market, or distribute a book (Helprin v. Harcourt, Inc.)
60
What are subsidiary rights?
Subsidiary rights include any rights beyond standard book publishing, such as:
* Film/TV adaptations
* Foreign translations
* Audiobooks
* Merchandising rights
61
Like most contracts that require one party to pay royalties to another, publishing contracts have an accounting clause. What is this clause?
The accounting clause specifies how and when royalties are calculated and paid, often quarterly or semi-annually. It also includes audit rights so authors can verify earnings.
62
What is the difference between a talent agent and a literary agent?
Talent agent: Focuses on securing acting, music, or entertainment jobs for clients.
Literary agent: Represents authors, helps sell books to publishers, negotiates contracts, and manages subsidiary rights
63
In copyright law, what is a collective work?
A collective work is a compilation of separate works assembled into a new whole (e.g., an anthology or magazine). Copyright covers the selection and arrangement but not the individual works within it.
64
What is the difference between a memoir and a biography?
Memoir: Written by the subject, focuses on personal experiences and themes, subjective and emotional (e.g., Educatedby Tara Westover).
Biography: Written by someone else, covers the subject’s entire life, objective and research-based (e.g., Steve Jobs by Walter Isaacson).
65
What is the agency model in the ebook industry?
Under the agency model, publishers set the retail price of e-books, and retailers (e.g., Amazon, Apple Books) sell at that price, taking a commission (usually 30%). This contrasts with the wholesale model, where retailers can set their own prices
66
What are the two possible copyrights associated with music? Who owns each of those copyrights?
Musical Composition – Owned by the songwriter or music publisher.
Sound Recording – Typically owned by the record label
67
What right(s) do owners of musical composition copyright owners have that copyright owners of sound recordings do not?
Musical composition owners have a public performance right for all types of performances.
Sound recording owners do not have a public performance right except for digital audio transmissions (e.g., streaming).
68
What is a mechanical license (also known as the compulsory mechanical license)?
A mechanical license allows the reproduction of a song in an audio recording.
69
Who owns the rights to grant this mechanical license?
Owned by songwriters or music publishers.
70
Who gets paid for the mechanical license?
Paid to the songwriter or publisher, often through the Harry Fox Agency (or another place)
71
What is a synchronization license? Who owns the rights to grant this license?
A sync license allows a song to be used with visual media (e.g., movies, TV, ads).
72
Who owns the rights to grant this synchronization license?
Licensed by songwriters or publishers.
73
Who gets paid for the synch license?
Paid to the song copyright owner
74
What is a master use license?
A master use license is needed to use a specific sound recording in media.
75
Who owns the rights to grant a master use license?
Licensed by the record label.
76
Who gets paid for the master use license?
Paid to the record label and featured artists
77
What is a grand right license (also known as a dramatic rights license)?
Also called dramatic rights, it covers live theatrical performances (e.g., Broadway).
78
Who owns the rights to grant a grand rights license?
Licensed by songwriters or publishers.
79
Who gets paid for the grands rights license?
Paid to the song’s copyright owner
80
What is a public performance license?
Required for playing a song in public venues (concerts, radio, streaming).
81
Who owns the rights to grant a public performance license?
Licensed by Performing Rights Organizations (PROs): ASCAP, BMI, SESAC, GMR, PMR.
82
Who gets paid for a public performance license?
Fees are collected by PROs and distributed to songwriters and publishers.
83
What is an in-context synchronization and master use license?
In-context: Uses a song in the same way it originally appeared in media (e.g., a trailer using a song exactly as it appears in the movie).
84
What is an out-of-context synchronization and master use license?
Out-of-context: Uses a song differently than its original appearance (e.g., using it in a different trailer). This often requires additional licensing.
85
There are currently five public performance rights organization in the US. Who are they?
ASCAP (American Society of Composers, Authors, and Publishers), BMI (Broadcast Music), SESAC (Society of European Stage Authors and Composers) , GMR (Global Music Rights), PMR (Pro Music Rights)
86
What is SoundExchange and what does this organization do?
SoundExchange collects and distributes royalties from digital, cable, and satellite music services (e.g., Pandora, SiriusXM) for non-interactive streaming
87
To whom does SoundExchange distribute its royalties (including those people who now receive royalties under the Music Modernization Act)?
50% to sound recording copyright owners (record labels)
45% to featured artists
5% to non-featured artists (backup singers, session musicians)
88
What is a non-interactive digital broadcast?
A non-interactive service lets listeners not choose songs (e.g., Pandora, satellite radio).
Requires SoundExchange licensing.
89
What is the purpose of a music publisher?
Music publishers license, promote, and collect royalties for songs. They help place songs in films, TV, and commercials
90
What is a music co-publisher?
A co-publishing deal allows the songwriter to keep part of their publishing rights while still working with a publisher. The songwriter gets both the writer’s share and part of the publisher’s share
91
What is an all-in record label agreement?
All-in deal: The artist’s advance covers production costs (e.g., producer fees).
92
What is a non-all-in record label agreement?
Non-all-in deal: The label covers production costs separately.
93
At one time before the advent of CD’s, label agreements only paid 90% of the royalties due a recording artist. Why?
Record labels withheld 10% for “breakage” due to the fragility of vinyl records.
94
What is a controlled composition?
A controlled composition is a song written by the recording artist.
95
What is the general royalty rate paid to record label artists for use of a controlled composition on an album?
Labels often cap mechanical royalties at 75% of the statutory rate.
96
What is a 360 record label deal?
A 360 deal allows a record label to take a percentage of all revenue sources, including touring, merchandising, and endorsements, not just album sales.
97
What is sampling?
Using a portion of an existing sound recording in a new song
98
The US Court of Appeals for the Sixth Circuit has held that a sampling license must always be obtained in what situation even if it would be considered a de minimus use?
A sampling license must always be obtained for any use of a sound recording (Bridgeport Music, Inc. v. Dimension Films).
99
In what situation has this same court said that no sampling license is needed as long as the use of the sample is de minimus?
The court also ruled that sampling of compositions does not require a license if the sample is de minimis
100
The 1978 Copyright Act gave no copyright protection for sound recordings produced before 1972. How did the Music Modernization Act change this?
The Music Modernization Act (MMA) of 2018 granted federal copyright protection to pre-1972 sound recordings.
Created a blanket mechanical licensing system for streaming services, administered by the Mechanical Licensing Collective (MLC)
101
What is an O&O television station?
O&O (Owned and Operated) stations are directly owned by a network (e.g., NBC owns an NBC O&O).
102
How is it different from an affiliate television station?
Affiliates are independently owned stations that have a contract to air network programming but aren’t owned by the network.
103
What is the name of the federal legislation that established the Federal Communications Commissions and gave the Commission its authority over television licensees?
Communications Act of 1934.
104
What was the prime-time access rule?
An FCC rule (1970) that limited how much prime-time content networks could provide to affiliates, encouraging local and independent programming from 7–8 PM (ET/PT).
105
What were the financial interest and syndication rules?
FCC rules (Fin-Syn, 1970s–1990s) that restricted networks from owning or having a financial stake in syndicated programming, to prevent monopolistic control.
106
What is off-network syndication?
Off-network syndication: Reruns of shows that originally aired on a network (e.g., Friends).
107
What is first run syndication?
First-run syndication: Shows made specifically for syndication, not for a major network (e.g., Judge Judy).
108
What are the duties of the showrunner for a television series?
The showrunner is the head writer and executive producer, responsible for creative vision, overseeing scripts, hiring, production, and post-production.
109
What is a put pilot deal?
Put pilot deal: A network guarantees to air the pilot or pays a penalty.
110
What is a cast contingent deal?
Cast contingent deal: Project only moves forward if specific actors are cast.
111
What is a script with penalty deal?
Script with penalty deal: A network commits to developing a script, with penalties if they don’t produce it.
112
What is a test pilot deal?
A traditional pilot made to test whether the concept works on-screen, often used to determine if a series will be greenlit.
113
What are stacking rights?
The right to make multiple episodes (or a full season) of a show available for on-demand streaming (vs. only a few recent episodes).
114
What is a “Betheny Frankel” clause in reality show contracts between show producers and on-air “talent”?
A clause giving producers a stake in future earnings or business ventures the talent launches as a result of the show’s exposure (named after Real Housewives star).
115
What is an MVPD and what does that abbreviation stand for?
MVPD: Multichannel Video Programming Distributor (e.g., Comcast, DirecTV).
116
What is an OVD and what does that abbreviation stand for?
OVD: Online Video Distributor (e.g., Netflix, YouTube).
117
What does SVOD stand for?
SVOD: Subscription Video on Demand (e.g., Netflix, Hulu).
118
What is retransmission consent?
A rule allowing broadcast stations to negotiate compensation with cable/satellite providers for the right to retransmit their signal.
119
What is the must-carry rule?
FCC rule requiring cable systems to carry local broadcast stations for free if the station elects must-carry instead of retransmission consent.
120
Generally speaking, the practice of block booking is a violation of US antitrust laws. What is block booking?
An illegal antitrust practice where studios force theaters to buy a bundle of movies (including unwanted ones) to get access to a desired film.
121
What are the names of the major film studios and who owns each one?
Universal Pictures – Owned by NBCUniversal (Comcast)
Warner Bros. Pictures – Owned by Warner Bros. Discovery
Walt Disney Studios – Owned by The Walt Disney Company
Paramount Pictures – Owned by Paramount Global (formerly ViacomCBS)
Sony Pictures – Owned by Sony Group Corporation
20th Century Studios – Owned by The Walt Disney Company (formerly part of Fox)
122
What is a film treatment?
A prose summary of a film's plot, characters, and key scenes. It is more detailed than a logline but shorter than a full script.
123
What is a spec script?
A speculative screenplay written without a prior deal, usually one that is brought to a producer, hoping it will be sold or used to gain future work
124
In a producer/writer option-purchase agreement, a writer may be able to reserve certain rights (stage rights, book publishing rights, etc.) but those reserved rights may be subject to a holdback. What is a holdback?
Holdback: A period during which the writer cannot license reserved rights elsewhere.
125
In a producer/writer option-purchase agreement, what does a producer do during the option period(s)?
Producer During Option Period: Seeks financing, attaches talent, shops the script to studios/distributors.
126
In a producer/writer option-purchase agreement, if the producer exercises the option the producer will be required to pay to the writer a production fee that is usually 2-3% of the film’s production budget but with a floor and a ceiling range of payments. What does “floor and ceiling” mean?
Floor and Ceiling: Refers to the minimum (floor) and maximum (ceiling) payment range the writer will receive if the project moves forward.
127
Why are most film deals that contain provisions agreeing to pay to one party a percentage of the film’s net profits considered illusory by many people?
Because “net profits” often exclude many expenses and deductions, many never see payment. Hollywood accounting can render “net profit” meaningless.
128
What is a loan-out company?
A personal corporation formed by talent (e.g., actors, writers) through which they provide services, offering tax and liability benefits.
129
What is a single card credit requirement in an actor’s motion picture agreement?
When an actor’s name appears alone on a title card in the film’s opening or closing credits, not shared with others.
130
What is a most favored nations (MFN) contract clause?
Ensures one party receives equal or better terms than any other similarly situated party in the contract.
131
What is a director’s cut?
A version of the film edited by the director, sometimes different from the studio-released version.
132
What is contingent compensation?
Payment based on the film reaching certain financial benchmarks, such as profits or box office revenue.
133
What is a possessory credit in the film industry?
A credit like “A Film by [Director’s Name]” that signifies primary creative control, typically reserved for directors.
134
What is a first dollar gross deal?
Compensation starts from the first dollar of gross receipts, not after expenses—rare and highly favorable to talent.
135
What is a p.g.a. credit?
“Producers Guild of America” credit. Signifies a producer performed a majority of the producing duties and is officially recognized by the Guild.
136
What is a film pre-sale?
Selling distribution rights in advance to foreign markets or territories, usually to raise funds for production.
137
What is gap financing?
A loan secured against unsold distribution rights, typically used to “fill the gap” in financing when pre-sales don’t cover the full budget.
138
What is completion guarantee insurance (or bond)?
A third-party guarantee that a film will be finished on time and on budget, or the bond company pays the investors back.
139
What is a first look deal?
A producer or company gives a studio or network the first opportunity to finance or distribute new projects before others can see them.
140
What is a state film tax credit?
Tax incentives offered by states to attract film/TV production to boost local economies. Credits can sometimes be sold or transferred.
141
What is an audit clause?
Allows talent or investors to audit the studio’s accounting records to verify earnings and ensure accurate compensation.
