L. Representations and guarantees. The distribution contract requires you to represent and guarantee certain things about your work, so that the exploitation by the distributor does not violate the rights of third parties. Pre-sale: Pre-sale is a limited distribution agreement for a given country, concluded before completion and often even before the start of production of the film. Thus, most advance sales are a foreign distributor who agrees to pay a fixed amount (an advance or a minimum guarantee) in the event of delivery of a film in exchange for certain rights to the film in a given country for a limited period of time. In most cases, no ancillary rights are acquired (e.g.B. merchandising, publishing and soundtrack rights). In addition to the advance due to delivery, the distributor agrees to pay for “overruns” that depend on the success of the film. The first is the stacking of fees.

It is likely that the contract proposed by the distributor will grant him the right to collect a full distribution fee on the amount received by the negotiator. What`s wrong? Let`s take an example: the trader cashes in 100 $US and withdraws his 20 percent selling fee and sends 80 $US to your distributor. Your distributor takes his 30 percent fee and sends you $56. The fees are stacked. While the trader`s fee is included in the distributor`s fee, you will receive $70 ($100 less than 30% is equivalent to $70). Agents and their fees are the same concern. Also check your contracts with third parties that contribute to your work, including layoffs. B, contracts with talent, music rights contracts and work for hire contracts, to ensure that these contracts do not conflict with the assurances and guarantees you make in the distribution contract.

If your contracts with third parties contain restrictions, the sales contract should contain the same restrictions. In most cases, the distribution company acquires long-term rights worldwide when the film is delivered. However, in some cases, rights are limited to a specific clause or territory (. B for example, the United States and Canada) or may result in the exclusion of certain ancillary rights. In this regard, a negative pickup looks like a presale (see below), but it is customary to refer to a U.S. takeover.