Film Distributor Breach of Contract

Entertainment Lawyer Question and Answer Forum:

Welcome to this week's Entertainment Lawyer Q&A, published by The Film & Television Law Quarterly and the entertainment law firm of BLAKE & WANG P.A. Each week an entertainment lawyer will respond to reader questions and publish the best discussions.

Have a question for an entertainment lawyer? Post it on our website at blakewang.com and get the answers you need.

Question:

Just finished my first feature film and got it picked up for world DVD distribution. When it was sold to the UK the distributors released it with an incorrectly transferred music track causing it to sound like a jumping dirty CD throughout the entire movie. Many customers have complained about this and returned the disc. The UK distributor has warned me not to bring up the problem publicly and refused to fix it. Being a first time director what can I do? It's now affecting my second feature as my film’s quality is now being called into question.

Answer by Brandon Blake - Entertainment Lawyer:

Great question. Having worked with feature film distributors for more than 13 years, representing filmmakers and working to get the best deal possible for both independent and studio projects, this is certainly not the first time I have heard of similar problems with distributors. Once the distribution agreement has been signed there is not much that can be done unless there is some provision in the contract that guarantees some level of performance from the distributor. In order to fully address this question, I will go through some ways to prevent this type of problem from occurring and then I will discuss some ideas for how to address it after the contract is signed.

Although it seems obvious, the easiest way to deal with a problem like this is to work with a reputable film distributor. Most distributors do not like returns any more than the filmmaker and will work to make sure that the sound and video quality are as good as possible before release. In fact, I often have clients complain about having to remaster their audio tracks as part of the delivery requirements, which ends up being quite expensive. One of the things that a good entertainment lawyer should do for a client is to know the reputation of a distributor before starting negotiations. I have worked with most of the film distributors worldwide so I can generally warn a client about problems like these before even beginning to negotiate the deal.

The second thing that can be done is to make sure that the distributor duties are specified in the distribution agreement. Often at first there is little or nothing in the agreement that specifies that the distributor must do anything other than pay royalties. I worked with a major studio last year that did not even specify they had a duty to release the film! Fortunately I pointed out the issue to the business affairs person and he was happy to correct the problem, but I wonder whether he ever changed the template or just our deal. I have found that distributors are generally very amenable to making changes to agreements, but only if the problems are brought up before the deal is signed. After signing it is typically hard to get anyone to even return a call.

Finally, once the contract has been signed and the film has been released, go over the agreement carefully and see whether there are any provisions dealing with distributor duties. There should at least be an obligation to distribute the film, and you may have negotiated for the distributor to complete certain delivery items. What you will not find is any right to stop the distribution of the film, because in any commercial distribution agreement one of the most important provisions from the distributor side is what is called a “waiver of equitable relief,” meaning the filmmaker is waiving any right to get an “injunction” or to stop the distribution of the film for any reason.

As with any legal matter, please do not make a decision about complex matters without consulting an experienced entertainment attorney first. I have been representing feature film projects and television series for more than 14 years. Please feel free to contact my office about a quote.

- By Brandon Blake, Entertainment Lawyer

About the Editor:

Brandon A. Blake is an entertainment lawyer and producer who works with Academy Award winning actors, directors and filmmakers. A complete biography is available online.

About the Entertainment Lawyer Q&A: The Entertainment Lawyer Q&A does not create an attorney-client relationship, nor is the information treated as confidential. Responses to selected questions will be made public and shared with our subscribers. All entertainment law information is informational in nature and is not intended to be acted on without entertainment lawyer counsel.

Promoting Films at Film Markets

Entertainment Lawyer Question and Answer Forum:

Welcome to this week's Entertainment Lawyer Q&A, published by The Film & Television Law Quarterly and the entertainment law firm of BLAKE & WANG P.A. Each week an entertainment lawyer will respond to reader questions and publish the best discussions.

Have a question for an entertainment lawyer? Post it on our website at blakewang.com and get the answers you need.

Question:

Dear Sir, I have a completed feature film and I would like to know what I need before I attend a film market?

Answer by Brandon Blake, Entertainment Attorney:

Having worked with feature filmmakers for more than 13 years, I know that perhaps the busiest time is during post-production as a producer begins to think about the successful distribution of the project.

Typically the producer and director will be focused on getting the picture editing just right while the audio is second, the legal contracts are somewhere in the back of the producer’s mind, and the promotional materials end up only lightly considered. So I want to bring up a range of things that filmmakers should consider as they are completing the film, which touch on both legal issues and also film sales issues.

Most producers have a general idea about the need for contracts, copyrights and trademarks. I will not cover this ground too much in this article, although anyone interested in additional articles about film contracts as well as the film distribution agreement can visit my firm’s website at www.blakewang.com.

Entertainment legal should be handled during the production, since it is much easier to get actors and writers to sign off on agreements before they start work. At some point everyone that participates in the production will need to sign a contract, if the project is going to get a commercial release. That is because distributors require E&O insurance (errors and omissions insurance), and before the insurance company will agree to cover a film the insurer will require that all production legal has been completed.

When it comes to film sales, I routinely attend film markets around the world, including the Cannes Film Festival, AFM, Sundance, Hong Kong FilmArt and this October I will also attend the Busan International Film Festival (formerly Pusan), the largest film market in Asia. When I represent finished feature films, I am often surprised how many experienced producers spend a tremendous amount of time editing the images, without as much attention to either audio or marketing and promotions. The good news is that every film can get attention from buyers if the following materials are put together before the markets.

In my experience, more films get passes because of deficient audio than almost any other technical problem. Sound editing, sound design and audio mastering are all critical to successfully distributing a film. Moreover, often the sound elements are what cause needless additional distribution expenses if it is left to the distributor to fix.

The promotional materials are also key. Trailers are important, although many distributors will want to create their own, but the website, stills and yes, the poster are all crucial. The fact is that without an excellent website and poster, distributors will pass on the project without even reviewing it. The initial sell of a feature film comes from the poster and one-sheet, with the website and trailer being the tools to get the buyer interested enough to invest 90 minutes in the film. With the right promotional materials and of course the proper legal paperwork and documentation for the chain-of-title, every film can get noticed by buyers.

As with any legal matter, please do not make a decision about complex matters without consulting an experienced entertainment attorney first. I have been representing feature film projects and television series for more than 14 years. Please feel free to contact my office about a quote.

- By Brandon Blake, Entertainment Lawyer

About the Editor:

Brandon A. Blake is an entertainment lawyer and producer who works with Academy Award winning actors, directors and filmmakers. A complete biography is available online.

About the Entertainment Lawyer Q&A: The Entertainment Lawyer Q&A does not create an attorney-client relationship, nor is the information treated as confidential. Responses to selected questions will be made public and shared with our subscribers. All entertainment law information is informational in nature and is not intended to be acted on without entertainment lawyer counsel.