But why would a manufacturer have an option to acquire the rights instead of buying them? Now, before acquiring the rights to a creative work, an option agreement gives the producer a set amount of time to secure financing, develop the project and determine if it is something they want to pursue (i.e. if there is a market for the equipment). This can also be beneficial to the owner, because if the buyer never exercises the option, the rights or shares of the property will never be transferred. After the option period expires, the owner has the option to maintain other offers and maintain the option fee (usually 10% of the purchase price). Many authors dream that one day their story or screenplay will arouse the interest of someone who wants to turn it into a film or television project. In general, the first step is when someone, perhaps a producer or a production company or even a studio, offers the author a contract known as an option contract. As with all these issues where art meets trade, I always advise you that when you are asked to sign something, except an autograph, you should have your lawyer checked first. Every writer should have a literary agent and a lawyer to advise him on his business relationships as soon as he enters this phase of the process, where the creative is spreading in the business world. Research the book or scenario you`re trying to choose.
If you are trying to use a book, you should receive a “quitclaim” from the publishing house that confirms that it is not against your project. Get a lawyer to verify your resignation. If you try to use a script, the author may want to publish it later as a book. It doesn`t matter – just talk to your lawyer about the writer`s plans, because the option agreement “reserves” these rights to the screenwriter. Construction premium: an additional fee paid to the owner if the buyer enters into a contract to develop or produce the work with a third party. Unlike an option agreement, a sales contract does not confer rights on the property itself. In this regard, a purchase agreement is in principle a service agreement and not an agreement to acquire property rights. In the absence of property rights, a sales contract of the owner is easier to violate and therefore gives less protection to the manufacturer. One owner could go behind the producer`s back and sell the rights to another party. The producer would not resort to an infringement application.
Conversely, as part of an option agreement, the builder has acquired a stake in the property that will not be returned to the owner until after the option has expired. If the owner wishes to sell or option the same interest in the property, another buyer would expect that the interest to be purchased would be legally free and that no other person would own property on the property.