And the duration of the contract could end, and they could sell it without you! Although many producers and studios still have option rights, more and more independent producers have turned to the Shopping Agreement, which offers them a simple and free alternative to an option to obtain the exclusive right to purchase a script, book, TV series format or other real estate. Although this kind of contract is not new to Hollywood, it has become much more common. As a general rule, as part of a shopping contract, the producer simply promises to use his best efforts (or even in good faith) to get a proposal from a studio, network or other production company for a property development contract. In return, the author grants the manufacturer the exclusive right, for a limited period, to „buy“ the property from selected potential buyers. If the manufacturer breaks down, nothing will be lost and the parts followed separate paths. If the manufacturer receives an attractive offer from a buyer and the author wishes to negotiate with that buyer, the producer will be attached to the project and the author and producer will negotiate separately their respective rights and producer contracts with that buyer. When they enter into agreements with the buyer, both receive their separate compensation to keep. A purchase agreement or „producer purchase agreement“ allows a producer or author to purchase a film or television project exclusively for financial organizations such as studios, networks and production companies for a specified period of time. During the duration of the purchase agreement, the manufacturer has the right – and is generally contractually binding – to leave the property to potential buyers or financiers in order to pass it through the development and production pipeline. If the manufacturer is successful and a buyer or financier shows an interest in the property, a sales contract allows the owner and producer to negotiate and enter into separate agreements on the project with the interested party.
The owner negotiates the sale of rights to the property while the manufacturer negotiates its attachment to the project. Let us know what you think of the shopping deals in the reviews and provide all the advice you think the community may find useful. The film and television industry has become increasingly informal in recent years. In the past, agents have signed actors and authors before trying to sell their services or equipment, members of production teams would sign cooperation agreements with their partners before bringing a project to a studio, and producers would enter into written option agreements with authors, where they would pay money to buy exclusively the film and television rights on a property.