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Overview[ edit ] The agreement details the exclusive rights, including the specified time period and financial obligations. The producer usually has to advance the essential elements, such as financing and talent, towards the creation of a film based on the work being optioned.
Similarly, producers can also option articles, video games, songs, or any other conceivable work of intellectual property. Financially, the contract qualifies as a financial option and may be valued by applying real options analysis. For example, " Paramount optioned the short story by Philip K. This is usually a slow process in subiectul opțiunii este a "package" of sorts is created.
During this time, the producer must: Get the screenplay written if the option was on a book or other work, and not a screenplay ; Obtain informal agreements with the directorthe principal actors, and the financiers; Take it to a movie studio or other potential financier and potentially help with distribution pre-sales ; Finalize the screenplay to the agreement of all stakeholders—the exclusivity of the option allows this step without risk of a rival attempt to produce the same property.
This process can last for a prolonged period of time known as development hell. If all this tentative planning falls into place, meaning actual agreements are subiectul opțiunii este and financing is secured, then the producer can start the pre-production phase.
A portion of the financing is usually used to exercise the option.
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Exclusivity[ edit ] Film options are exclusive, usually for an initial period of 12—18 months. After the expiration date, the producer no longer has an exclusive right to buy the screenplay, and the writer can option it to a different producer.
Most option agreements specify the prices of additional extensions most commonly one extension, also for 12—18 monthsshould the producer be unable to put the movie together in the originally specified term, and choose to extend. The fee for the first option period is normally applicable to the option exercise price, while the fee for the extension if exercised typically is not applicable, though that is not always the case.
Options in Hollywood[ edit ] Options are not expensive by the standards of Hollywood movies. Option contracts typically do specify the eventual cost of the screenplay, if the producer does end up exercising the option.
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Since optioning a screenplay is far cheaper than buying recenzii despre robotul ab pentru opțiuni binare, options are very popular in Hollywood for speculative projects. Theatrical options[ edit ] The above rules generally also apply to the option contract for a completed play between playwrights and theatrical producers.
A significant difference is that the playwright may refuse to allow their product to be changed in any way without consent and involvement.
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The option will provide for the provisions triggered by the purchase of the play when the producer has put his investors and money together. Occasionally, a play will be commissioned by a producing organization, and in that case the writer will not be working " on spec ", and the notion of an option will not arise.