Contracts & how to track DVD sales?

lanz

lanz

Member
I did a lot of the editing on the first installment of a hardcore wrestling video that is just starting to show on Pay Per View. They were crying poor because they hadn’t started selling anything yet. I ended up doing the editing for VERY little money since this is my first paying gig, and I hoped for future work…they have a PPV contract to show 3 more videos.

They were happy enough with my work to offer me editor/producer credit for the future videos. I have been told that they have a distribution preorder for the first video of 20,000 units and they feel that it should do better than that due to the PPV publicity.

I am starting negotiations to be editor/producer for the second installment of the DVD/PPV and am not positive what to do. They still haven’t started getting money back from the DVD sales, so I know they are going to say that they don’t have a lot of money. I intend to ask for a “decent” amount of money this time, but I also intend to ask for a percent of sales as well. I don’t get the feeling that the people I am dealing with are going to screw me, but they are definitely cheap.

My main question is: How can you track DVD sales to make sure that you are getting what has been negotiated?

Also, does anyone have any other advice or suggestions that I may not have thought of?

Thanks for any help you may be able to give.

Lanz
 
I am certainly no expert on the matter, but it strikes me that first you'd have the right to audit the books on demand or somesuch.

Whatever you want, get it in writing, and have YOUR lawyer approve whatever you sign BEFORE you sign it.

Are the untrusted ones doing the distribution? If a fulfillment house is doing it, right to see unit sales results might be all you need.
 
I'd ask for an annual audit right (once a year). They'll likely insist on it being pre-arranged and possibly that they be allowed to reject your choice of CPA. Things can get complicated like that.

Also, be careful how you put that backend percentage in writing... they could also allocate all the profit to advertising and other costs and effective cut you out of the money anyway with a little Hollywood accounting.
 
MikeCurtis said:
If a fulfillment house is doing it, right to see unit sales results might be all you need.
Click to expand...

Thanks, I hadn't thought of that. I'm pretty sure that they have a distributor, but I don't know who.

I definitely am going to have to talk to a lawyer, when I find one. Can anyone tell me ... Is a lawyer a lawyer, or does an entertainment lawyer make that much of a difference?
 
Owen said:
Also, be careful how you put that backend percentage in writing... they could also allocate all the profit to advertising and other costs and effective cut you out of the money anyway with a little Hollywood accounting.
Click to expand...

Yeah, that whole "what is profit" thing seemed like a big loophole. Ug....I need a lawyer, because I have no idea how to protect myself from that sort of thing.

Thanks.
 
As said above you need to include Audit rights in your contract. Try to have it so they pay for the audit too as it can be spendy.
 
mediamogul said:
As said above you need to include Audit rights in your contract. Try to have it so they pay for the audit too as it can be spendy.
Click to expand...

Audit right...cool. I didn't realize I could do that before I started this.

Thanks.
 
You do NOT want a general practice lawyer to represent you in the entertainment industry. Even a lawyer listed in the Yellow Pages under "Attorney - Entertainment" may not be suitable, managing a few bookings for local bands seems to qualify for that.

In fact, what you require is an entertainment lawyer who actually has experience in the film industry AND in both the genre of film you're working within (docs have different requirements than fictional drama or music videos and there's an entirely different set of rules for adult porn) as well as the distribution level (internet self-distrib is a far cry from domestic theatre showings).

Speak with a prospective attorney before getting involved. Ask about what projects they've been involved in and verify their involvement. If they've only handled the paperwork for a few music videos and you're into docs, they may prove to be inadequate for your needs.

Develop a more-than-basic understanding of of your legal needs as a filmmaker and ensure the person you're dealing with can fulfill them. If, for example, you wish to include third party photographs, you'd require a "material(s) release license" from the person that took the photos. The photographer may have releases from the models in the photos, however they may not apply to their use in your video; photographic releases often state "reproduction in all forms mechinical and electronic". However, E&O insurance (more about that in a sec) requires that release explicitely states each and every medium the license is being granted for (public access, DVD, Podcast, etc) before it'll cover that medium.

Determine what level of distribution you seek for your film and be certain that the attorney you choose is capable of handling the required paperwork properly. That is to say, the broader the anticipated market, the stricter the requirements are- the more carefully the i's have to be dotted and the t's crossed. Domestic distribution, which requires E&O insurance, is not possible (at this point and, sadly, it's getting worse) unless you can document a grant of license for every identifiable person in each frame, every recognizable brand name and any stray snippet of music recorded.

In short, a proper entertainment lawyer, one suited to your specific project, should and must be one of the first items on your budget. Only after finding one can you be certain you have an incorporation set properly to personally shield you from liability, negotiate and write agreements (also called licenses, which are all just a specific form of contracts) and ensure that any contracts entered into are enforced.

To answer your original question, you'd probably be better off writing this one off. To pay a lawyer after the fact, where he has to go into the implied, agreed upon and written contracts and determine what your rights and recourses are at this point would probably not result in any personal gain (though the lawyer could well love you before it was finished!). As the saying goes- "There's only one sure thing in law, it's going to be expensive". Having had an attorney from the git-go would've been wise, getting one before the next bout will prove you're wiser.
 
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