Running an independent film production company involves working with contracts that shape how projects are created, distributed, and monetized. Each type of agreement influences control, revenue, ownership, and risk over time.
Common Deal StructuresIndependent film companies often use a few recurring deal structures. A sales agent agreement, for example, typically grants the sales agent the exclusive right to seek distribution for a film in certain territories for a defined period of time. In return, the agent will receive a commission on revenues generated by the sale and licensing of the film.
Other models include collaborations with other production companies. These agreements would include production and financing obligations, where the producers receive equity in the company wholly or partly in exchange for their work in producing the film.
Distribution AgreementsHow a film is distributed often determines whether it earns meaningful revenue or disappears quietly after release. These contracts describe which rights are being granted, such as theatrical, home video, video-on-demand, subscription streaming, advertising-supported streaming, or educational licensing. The scope of those rights can affect both the reach of a project and its potential earnings.
Territory is another core element in distribution deals. Some agreements focus on a single country or region, while others cover multiple territories or worldwide rights. Independent films are often handled through split-rights or split-territory arrangements, where different distributors or agencies manage specific regions or formats based on their experience and relationships.
Financial terms in distribution contracts can be detailed. Some distributors offer minimum guarantees that are recouped from future income, while others rely primarily on revenue-sharing formulas. The agreement usually explains how gross receipts are defined, which expenses may be deducted, and how and when statements and payments will be made. Provisions about release windows, such as the timing between theatrical, transactional digital, and streaming releases, can also influence when and how revenue is generated.
Distributors may also license certain rights and then sublicense those rights to third parties, which can help build a catalog that generates income across multiple titles and platforms.
Talent ContractsCompanies that participate in packaging or production frequently encounter talent contracts. These agreements involve actors, directors, writers, composers, and other creative or technical professionals whose contributions are necessary for the film. The contracts typically address compensation, credit, and the allocation of rights in the work that is created.
Compensation can include a combination of fixed fees and contingent payments. For example, a performer or writer may receive an initial fee along with the possibility of additional payments if the film reaches certain revenue or performance benchmarks. The method used to calculate those contingent amounts, whether based on an adjusted gross definition or a net profits formula, can significantly influence what the individual ultimately receives.
Credit provisions also play an important role. The size and placement of a person’s name in on-screen credits, promotional materials, and advertisements can affect future opportunities and perceived status in the industry. In some situations, work-for-hire language appears in the contract, indicating that rights in a script, score, or other creative contribution are transferred to the production company or another designated entity. That type of clause can affect who controls future uses, adaptations, and licensing of the work.
Intellectual Property Ownership IssuesIntellectual property (IP) ownership is a key concern in many film contracts. Before a distributor becomes involved in representing or distributing a project, it is common practice to confirm that the producer or rights holder has secured the necessary rights in the underlying material. This may include rights in the script, any pre-existing works, the score, and the contributions of cast and crew.
The term “chain of title” is often used to describe the collection of documents that show how rights have moved from one party to another over time. Clear and complete documentation can help reduce the risk of disputes about ownership. Projects that include music, artwork, archival footage, or other third-party materials usually require licenses or permissions to use those elements. Having your paperwork in place is also critical for getting errors and omissions (E&O) insurance—almost always a requirement of securing distribution.
Older agreements can raise additional questions, particularly when they were entered into before the widespread use of digital distribution and streaming platforms. Some contracts from earlier periods may not explicitly address online or on-demand rights, which can create uncertainty about how those rights are allocated. Reserved rights clauses, where certain rights are retained by the producer or another party, such as rights to merchandising, sequels, or remakes, also influence future opportunities for exploitation of the film and related properties.
If you are an independent filmmaker or run a film production company, Hrbek Law can assist with drafting, reviewing, and negotiating the contracts that shape your work. From distribution agreements to intellectual property ownership, thoughtful legal guidance can help support long-term success. Contact Hrbek Law to schedule a consultation.