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Provisions in Book Author/Studio Contracts Covering Motion Picture Sequels

BY Michael I. Rudell
July 23, 2009

Anyone following summer motion picture releases will note the seasonal prevalence of big budget sequels to successful films. In some instances, sequels are derived solely from the scripts of previously produced motion pictures (e.g., Terminator, Night at the Museum). In other instances, they connect with books or book series that were made into one or more prior films (e.g., Harry Potter and the Half-Blood Prince, Angels & Demons). Mindful of the vast rewards that can flow from these so-called “franchises” (e.g., the James Bond franchise), Hollywood studios structure their agreements with book authors to maximize their chances of creating one.

The Studio Sequel

The agreement by which a financier/distributor (referred to herein as a “studio”) obtains exclusive rights to a literary property, typically defines the “Work” as something broader than the book alone. The acquired “Work,” as described, also includes characters, themes and plots found in the book. Not only may the studio utilize those elements in the first motion picture it produces, but also may include them in any subsequent motion pictures it makes in the form of sequels, prequels or remakes. (A sequel usually places one or more of the characters from the original story in new and different situations; a prequel does the same but it's set in a time before the original story takes place; a remake retells the original story, sometimes with changes in time or place.)

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