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Negotiating Termination Provisions in Film Talent and Distribution Deals
Entertainment attorneys spend a significant part of their time putting deals together and creating agreements reflecting those deals. But these lawyers may occasionally be called on to terminate ' in an amicable fashion ' an agreement that they or someone else has prepared.
For example, a producer enters into a distribution agreement for a completed motion picture. After mostly unsuccessful efforts to exploit, the distributor may become unwilling to commit more time, money and effort to distributing the motion picture. The producer may believe there are other alternative distribution outlets that may be more successful.
As another example, a production company engages the services of a director for its upcoming motion picture. Before the start of principal photography, and before the director has become pay-or-play (thereby obligating the production company to pay the director, except for default or disability, even if the director does not direct the motion picture, the parties realize that they do not see eye-to-eye on the concept for the motion picture). (Editor's Note: For more on pay-or-play, see “Dealing with the Implications of Pay-or-Play Agreements for Talent” by Sunny Brenner in the July 2003 issue of Entertainment Law & Finance.) Perhaps the director has an offer for another motion picture, and another director, preferred by the production company, has become available.
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