TeleCourse Raw Notes

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Negotiating Author Agreements
Dana Singer
Feb. 10, 1998

These "Raw Notes" taken by Tara Greenway

Thank you Tara!

Agreements must meet:

*Producer’s needs: including enough time to raise money, some security for his investment of time, flexibility to explore different avenues, need to make money

*Author’s needs: including desire to know where producer is headed with their work, which they’ve invested much time and effort in

*Producer has rights for option period and while play is running

• it may be in contract that producers can produce play a 2nd time
• subsidiary right should also be addressed in control
• e.g., if there’s a film deal
• also producer should get future prominent billing credit

*it’s like a bundle of rights, or a bundle of twigs, you could divide up or (more typically) keep together

Copyrighting

* in theater (as opposed to film or TV), author owns copyright and is "renting" it to producer for a certain period of time, then author gets the rights back

* the copyright is a monopoly: author monopolizes rights for performances, making copies, distribution, turning it into other media

• usually there’s a "pinnacle production," Broadway or off-Broadway, then stock, then amateur
• initial producer gets exclusive rights at the time of production

* making changes in script:

• usually no one has the right to make changes in script but author
• but this doesn’t mean author has the right to say "this is perfect; I won’t change anything"
• once the piece has been optioned, if there are then extensive changes made, producer has the right to say "this isn’t the play I optioned"
• author doesn’t have unilateral rights during time period producer is producing

Option payment - an advance paid to author against future royalties - typically not a lot of money in theater (film and TV are different)

* most authors are members of Dramatist’ Guild and are working under minimum payments an other rules

* LORT theaters like Seattle Rep, Goodman, Mark Taper Forum, usually will option around $1,000-2,000

• LORT (League of Resident Theaters) theaters are non-profit rather than commercial; i.e., they get their money from contributions from foundations, corporations, individuals, as well as ticket sales
• off-Broadway and Broadway will pay options slightly higher

this advance is nonrefundable but recoupable - i.e., author pays back producer once royalties come in but not if they don’t

• Royalties: author usually gets 5% of gross ticket sales minus cost of credit card charge or group sales commission
• Recoupment: when up-front debt for theater rental, set, props, costumes, etc., is paid, you’ve recouped

* theater producers only get profits, after investors are all paid back

* author usually gets 6-7% after recoupment or sometimes (in regional or >non-profit off-Broadway) may get flat $ amount

Producer is responsible for negotiating contracts with investors, playwrights, every

* everyone wants to see a profit

* producer takes great risk

• minimum 3 months to recoup, usually more like 6-9 months, 1 year, or never

* producer usually takes a small weekly royalty for himself and to cover office expenses, but really would like to see percentage of net profits

License agreement is a much shorter agreement, like if show has already been produced.

Most shows are limited partnerships: investors can only lose whatever money they put up.

* once an investor participates in management decisions they lose limited partnership status

* being a producers is a combination of being an artist and a businessperson

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