Optioning for production? What does that mean?

R

ralphhogaboom

New member
I've been in contact with a scriptwriter who has a short I want to develop. I offered to buy his script for $25; small potatoes, sure. He said fine, you can *option* it for that much. When I asked for clarification of optioning, he had this to say:

"An "option" is where a producer (you) buys the exclusive right to produce a script, novel or some other story for a fixed length of time. This protects the producer because they know you have a set amount of time to complete the project without worrying about the writer changing their mind and selling it to someone else. It also protects the writer, because if the project does not get made, they get to sell it to someone else after the option expires. [FONT=courier,monaco,monospace,sans-serif] [/FONT]
[FONT=courier,monaco,monospace,sans-serif]Since you are producing the "completed work", you will have the rights to it, and may use it however you like."

Is this true? I ask because I've read elsewhere on the Nintertron that optioning puts a reservation on a work; but buying it is a second step to securing the rights to distribution. Can some pro spell me clearly from here on out?

Ralph Hogaboom
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You are right and the writer is wrong. What he says about protecting both parties is correct, but the option is actually an option to buy, not an option to produce. Option Agreements always have Purchase Agreements attached. The Option Agreement (for relatively little money) allows you the exclusive right to buy (usually for a larger amount). But this gives you a window of exclusivity to develop the project. Have an actual lawyer look it over.
 
An additional thought. If the writer wants the property back if it's not made into a film within a certain length of time, have the lawyer draw up your agreement that way: sorta like - You are BUYING it (not optioning), but if you don't produce within a certain length of time, all rights revert back to the writer. (Be sure to define what "produce" means.)
 
The option effectively puts a hold on the writer's ability to sell their work to another entity while you attempt to physically produce it.

It is a reciprocal agreement - the producer has exclusive rights to the work for a fixed period of time while the writer is assured that the work will not languish on the shelf if the project stalls out under that producer.

Typically, the option is "against" a larger, fixed and guaranteed purchase price.

e
 
And you ALWAYS want to negotiate the selling price and put it in the contract. There's nothing worse than "optioning" a project for a price without a fixed selling price, then having the writer come back and "jack" the price up. If you don't own the story rights, you'll never be able to sell the finished product.
 
An option is pointless if you already plan to go into production and don't need to raise funding or something. A lot of times I will option and purchase at the exact same time, since a lot of writers seem to expect an option for some reason... that way they get the option AND the purchase all in one tidy transaction. This approach may be easier for you if you have trouble getting the idea of an option out of the writer's head.
 
Ralph,

If you're really serious about doing this guys/girls script, maybe you should shell out some more serious $$$, and actually purchase this script.

Option will get you nothing other than the right to lock-down this material for a said amount of time.

Purchase will give you the right to own the script - thus be able to make it.

Sometimes, you get what you pay for in life.

EJ
 
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