Copyrights and Other Rights
entitles the author to writing and publishing revenues associated with created works. However, occasionally the producer may become a co-writer on a project. When this occurs, the producer is allowed to share in the copyright of co-written projects, which also entitles them to a share of publishing revenues. A qualified attorney can help ensure that both parties understand and agree on the publishing splits before signing the contract.
Residuals, Royalties, and Subsidies
Most production agreements include a royalty clause that allows the production company to share in a percentage of the royalties generated from the produced project, generally as a way to recoup production costs associated with the project. Sometimes, the royalty clause can apply to several revenue streams, such as secondary publishing rights; therefore, it is vital to understand the wording of the contract before signing.
Sometimes a project may involve various producers, in which case, they are each entitled to a share of the royalties. An Entertainment Law
attorney can assist involved parties with the negotiation of an appropriate royalty rate as well as help wronged parties recoup costs in the event of an underpayment.
Advancements and Other Payments
Given that various payment streams can accrue as a result of your contract signing, it is important to know the exact financial wording of your contract before signing in order to benefit from them. For example, it may be several months before the artist receives an income while the production is being made, in which case, they may qualify for an advancement, or percentage of payment towards future earnings to accommodate living expenses. This payment may be received from a record label, production company or other professional relationship and is usually recouped from the artist's account.
Generally, payments should only be recouped from the artist given there are enough funds generated from sales. However, some companies may feel obligated to recoup expenses in either case. A Production Company Contract Lawyer can review the contract and ensure the artist understands the payments and financial obligations involved with their deal as well as assist in the negotiation of reasonable repayment options.
Breach of Contract
A breach of contract
is serious business and can result in a court-ordered financial compensation to the wronged party for their loss. Sometimes a party can breach the terms of their contract unknowingly, in which case, there are various provisions for relief that may apply; however, it requires thorough knowledge of contracts. A Law Firm for Production Company Contracts has thorough knowledge of business contracts and can assist both parties with a resolution before filing a lawsuit and provide aid in the event the wronged party decides to pursue legal proceedings.