Before you begin shooting, protect your film with formal agreements that will prevent major miscommunications.
Filmmakers need to understand and sign several written agreements that are enforceable by law.
A legal document that outlines the purpose, formation, and rules of operation, LLC’s operating agreement ensures that everyone is on the same page. It helps minimize disputes and also allows you to set up your own terms and guidelines—e.g., profit sharing—for issues that would otherwise be subject to state laws (aka default rules).
A contract that outlines specific terms, including what is being sold—a script, a book, a play, a short story—the amount for which it is being sold, and how it can and cannot be used is called a rights purchase agreement. The buyer will likely want full control of the purchase, and the seller will have to stipulate what she is and is not comfortable relinquishing.
Depending on the nature of your film—and the way subjects are portrayed—you may want legal protection against potential lawsuits on defamation (false statements), rights of publicity (how someone controls the commercial use of their identity), and invasion of privacy (publicizing derogatory facts that a “reasonable person” would find highly offensive). You may think your film can’t possibly cause controversy, but producers and distributors may still insist on life rights.
An option agreement is a time-bound contract, which prevents others from buying your product and outlines a window for purchaser decision making. A potential buyer is essentially renting your product, keeping it off the market and simultaneously weighing whether to fully commit. If, at the end of the agreement, the purchaser passes, you’re free to shop your product elsewhere. If the purchaser wants to retain rights, you’ll enter into a rights purchase agreement. Either way you’ll make some money.
If you commission a writer to create successive drafts for a film screenplay in return for set payments—and possibly a share of film profits—you will need a signed writer’s agreement. This agreement will outline the writer’s services and incorporate all terms, conditions, rules, policies, and guidelines.
Wealthy independent filmmakers are an anomaly; everyone else needs funding. Options include loans (personal or from lenders); credit cards (relatively easy but not always prudent); crowdfunding (beware SEC requirements); or borrowing from friends and family. Filmmakers can also offer equity in their production, and entities can seek fiscal sponsorship from tax exempt organizations.
Every single person—the director, the cinematographer, the producer, the associate producer, the grip, the caterer—who works on your film needs an agreement outlining their rights and responsibilities. You’ll also need location agreements that stipulate when you can use a specific venue (day and night? March or also April?) and if there are rules to be followed. The same goes for music—can you use a song in the opening of your film, at any point, or just during the credits? Each agreement must also state the price being paid.
Filmmakers need legal agreements to photograph, film and actually use a cast member’s voice, image and performance in their movie. A cast member can be a world renowned actor or a relatively unknown interview subject in a documentary. Signed actor release forms should be secured before you start filming; these agreements stipulate that you acquired the rights to use the signee’s “image and likeness” when you screen and distribute your film. Promotional rights allow you to use a cast member’s “image and likeness” for publicity, in promotional materials like posters, trailers, and merchandise.
The people tasked with making the budget and overseeing the creative content are considered crew above the line.
Everyone working on the film besides the director and producer are considered crew below the line. The myriad cast of characters who help a film get made, ensuring that everything—from the precise color of an actor’s lipstick to the notes of a specific song—is exactly right. The crew is often broken up into different departments: lighting, sound, costumes, hair & makeup, art, stunts & special effects, and transportation, among others.