Option Agreement

What is an Option Agreement?

An Option Agreement is a legal contract between a Creator and a Producer regarding the potential acquisition of rights to a creative work.

Main Purpose

Instead of immediately buying the rights to produce a creative project (e.g., a film, TV series), the producer gains limited rights to an “option period,” typically 1-2 years. This option period allows the producer exclusive rights to buy, to market the project, and to secure partners and funding or investors for the project.

Option Fee and Purchase Price

The initial fee to enter this agreement, called the “option fee,” may be nominal— even as low as $1. This fee is compensation for the initial limited rights. Once the producer has secured its partners and financing, they may decide to buy the rights (called exercising the option). A “purchase price” is then paid in exchange for the complete transfer of rights to produce the project. The purchase price may take different forms, for example, as a set amount or as a percentage of the budget.

Key Components

Potential extensions of the option period for additional fees.
Specific criteria and steps the producer must follow to exercise the option.
Additional rights and compensations for the creator if the production goes ahead. This might include credits, bonuses, or rights to sequels and other derivative works. If the work is a pilot script for a TV series, the creator may want the right to write certain episodes.

Protection for the Creator

If the Producer exercises the option but doesn’t produce the work within a specified timeframe, there may be a clause that the rights revert back to the creator. This called a “reversion of rights”, which is intended to add certain protections for the Creator. The Creator would then be allowed to pursue other opportunities to adapt the underlying work.

Option Agreements at Edwards Creative Law

How our team can help with your Option Agreements

The Lawyers on our team assist with navigating the complexities of option agreements for our clients. We review, comment on, revise, advise on and draft option agreements.

Our approach is tailored to meet your project requirements, ensuring the agreement aligns with your vision and expectations as closely as possible.

We start with an initial discussion in order to gauge the scope of your project and provide the following services:

Reviewing

Presented with an Option Agreement for a film, TV series, web series, or book? Your lawyer will ask for a copy of the agreement and perform a comprehensive review.

Commenting

Following the review, your lawyer will schedule a call to dive deeper into the agreement together. This involves pinpointing clauses that might need adjustment, offering guidance on the agreement’s viability, and charting out potential avenues like negotiations.

Negotiating and Revising

We don’t just review and comment—we negotiate. Our goal is to recalibrate terms that resonate with your best interests. This entails communications, from emails to calls, and suggesting edits for the other party’s contemplation.

Drafting

Perhaps you’re the Creator in need of an Option Agreement for a Producer intrigued by your project to sign. Your lawyer collaborates with you to determine the agreement’s terms and prepare a draft for your review. Revisions? The first round is on us, ensuring you receive the polished final document ready for signatures.

Templatizing

Regularly presenting options with consistent terms to multiple Producers? You lawyer will craft a custom Option Agreement template. This ensures you have a ready-to-use document for various transactions, sparing you the repetition of drafting for each transaction.

Harness our expertise to make Option Agreements simpler and more strategic for you.

Get in Touch with Edwards Creative Law

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Testimonials From Our Clients

Read about what Canadian creatives have to say about working with Edwards Creative Law

I appreciate the professionalism and courtesy that the team here showed me along the way

Edwards Creative Law was very patient and understanding throughout my entire Incorporation process. I appreciate the professionalism and courtesy that the team here showed me along the way. There was a whole lot that I did not know and and that HAD to be quite difficult or tiresome but it never felt that way. There were NO biased undertones, no dismissiveness and no condescending of any nature; just immaculate professionalism. I’m the proud owner of an Animation & Gaming Corporation, thanks to them.

Raashid Ifill

ifillium Inc.

A genuine, creative, talented team

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