Extension fees are generally higher than the first option. The reason is the demand. If there is an interest in the project, the option of extension is exercised. In addition, a writer`s extensions must freeze the story for a new period of negotiation. This means that the manufacturer (or its agent) can use its option at any time during the option and acquire the image and television rights to the property by simply paying the agreed purchase price. The purchase price is a one-time payment to the original rights holder, which will probably be part of the budget you find to make the film. It is usually payable about the first day of the main photography. The difficulty for you as a producer is that if you negotiate an option contract, you don`t know how much you can pay the rights holder. As a result, the purchase price is often expressed as a percentage of the final budget – often with a „ceiling“ and a „land“ that guarantees that the author receives a certain amount, but no more than the agreed ceiling. As I said, this is often said: „equal  % of the budget, the purchase price being a minimum of X and a maximum of Y.“ As a general rule, the sales contract is negotiated in parallel with the option contract.
Households are the producers` worst nightmare. If producers think a project has potential, they need to be sure of the cost of the project, which involves the cost of the option and the purchase of the history rights. The last thing producers want when they`re shooting a movie is to have big, unforeseen costs that inflate expenses and blow up their budgets. Unfortunately, most book-film projects never see the light of the world. So if a writer has signed a purchase contract, the author has zero certainties that a project is done and has zero leverage to buy the book from other producers during the period of the shopping agreement. The writer`s hands are tied. An option contract puts at least money in the writer`s pocket. 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. Producers want to have as many rights as possible related to the option, that is, not only the right to make the film, but also the right to make sequels, television films, series, and if they can get it, merchandising and advertising rights too. The bottom line, people seem to be worried about these agreements is the difference in the writer`s power to approve the terms of the sale of the property. Let`s compare a couple. And the duration of the contract could end, and they could sell it without you! As a general rule, there are two option rights and periods, i.e.
the first option is the amount of X for Y months, with the option to extend additional Y months for the amount of X. These are generally referred to as „second option commissions“ for the „second option period.“ You have until the end of the last option period to „exercise“ the option. In general, this happens when you have all the funding together and everyone is ready to shoot. So we`ll report on these agreements today and see how you can use them to get a valuable ipe on your site before hiring producers or studios. You also need to think about secondary rights. What do you plan to do with this project once you`ve finished your film or series? Perhaps you would like to develop a piece or create amazing goods.