What to Look For in a Distribution Contract

Should you sign?
Should you sign?

What follows should not be construed as legal advice, and you should ALWAYS get legal advice before signing a contract. However, if you’ve been offered your first distribution deal and money is tight, these basic tips might help you reach a rough understanding of what exactly is on the table before you splash out on a solicitor.

rAs an example I’m going to use one of the contracts I was offered for my feature Soul Searcher, but not the one I signed.

Download the contract (PDF, 143KB) – I cannot be held responsible for any losses arising from the use of this contract or the following blog post.

Grant of Rights

Producer hereby grants to Distributor, with respect to the Term and the Territory set out below, the exclusive distribution and exhibition rights in all media now known or devised later including, but not limited to Theatrical, and Non Theatrical rights, Video/DVD rights, rights pertaining to all forms of Television syndicated or non syndicated, ancillary rights, and all kinds of internet rights pertaining to the feature film entitled “SOUL SEARCHER” (the “Picture”) a film by Neil Oseman, shot in Mini DV.

Territory: The World excluding U.K.

Term: Commencing immediately and expiring 25 years from the Date of Complete Delivery.

First of all check out the TERRITORY and MEDIA, i.e. what countries are you allowing the sales agent to distribute the film in and in what form (theatrical, DVD, TV, VOD…), but be aware that just because the contract grants them the right to release your film in cinemas, for example, it doesn’t mean they are under any obligation to do that. Also check out the TERM – how long will they get these rights for? The 25 year term in this contract is unusually long; five would be more typical.

Minimum Guarantee (“ Advance”)

Distributor agrees to pay Producer Fifteen thousand dollars ($15,000.00 USD) as a Minimum Guarantee of Producer’s share of Gross Receipts payable 20% on signing of this agreement and approval of Chain of title. The remaining 80% balance will be on complete delivery and acceptance, in terms of technical specifications, of all the items noted under Schedule “ A”. 

This contract offers an ADVANCE – meaning that they pay you upfront, later recouping this advance out of the profits. But if your film doesn’t make any profits you’ve still got the advance. This is a great deal for a low budget filmmaker.

Distribution Fees, Expenses and Reporting

Distributor shall be entitled to a distribution fee of 25% of gross receipts net of withholding tax from exploitation of the Rights. 

The crux of the contract is the PERCENTAGE of any earnings that the sales agent will pass on to you the producer, the higher the better. Here they are proposing to take 25%. That leaves 75% for me –  pretty good, huh? But wait….

Distributor shall also be entitled to distribution expenses to a maximum cap of U.S. $ 75,000.00 excluding deliverables, unless additional expenses are approved in writing by Producer, which approval will not be unreasonably withheld (“Distribution Expenses”). Distribution Expenses mean out-of-pocket costs incurred by the Distributor, directly or indirectly, in specific connection with distribution, promotion, and marketing of the Picture including any costs which can reasonably and proportionately be allocated to the Picture in accordance with normal accounting practices of the motion picture industry.

Gross receipts shall be disbursed in the following order: (1) Distributor’s fee (2) To recoup Distributor’s costs for creating or correcting any deficient materials as set forth above (3) Distribution Expenses (4) Balance to Producer

Check out that last paragraph. When the money comes in, the sales agent creams off their 25%, then they recoup any costs in correcting the delivery materials (more on that later), then they recoup their EXPENSES, and only then does the producer get what’s left of the pie. So they can swan off to Cannes, Berlin, the American Film Market and so on, to promote their catalogue of films, and take the cost of all their lunches and air fares and slap-up dinners out of the profits before the producers of those films get to see a penny.

You should look for an EXPENSES CAP in the contract, limiting the amount the sales agent can claim out of the profits before they’re passed to you. Here it’s $75,000. The chances of a microbudget film ever making more than that are extremely slim. Result? You never see any money (except the advance, if you’re lucky enough to have been offered one).

Representations and Warranties

Producer warrants, represents and agrees that it is the holder of the copyright, and has the right to convey all of the rights, licenses and privileges granted herein; that it has not entered and will not enter into any agreement, commitment, arrangement or other grant of rights competing with, interfering with, affecting or diminishing any of the rights and licenses granted herein, and that the Picture, insofar as the Rights granted herein are concerned, are free and clear of any encumbrance and do not infringe upon the rights of any party or parties whomsoever. 

If you sign this contract, what you’re saying via the paragraph above is that you haven’t already sold the rights to anyone else and that your film doesn’t infringe anyone else’s copyright. You’re WARRANTING that you’ve cleared all the music and branding that appears in your film. You got Apple’s permission to show that logo on the iPhone your lead character’s always using, right? And you got WHSmith’s permission to have their shopfront in the background of that highstreet scene?

Now we come to the reason I didn’t sign this contract: the DELIVERY MATERIALS, the list of which occupies five full pages of this contract, so check out the PDF download above to see them.

When you sell a film, you can’t just hand over one master copy of it. The sales agent wants all kinds of different versions – eleven different submasters in this contract, plus all the film elements (those would have been expensive – I didn’t shoot on film!), sound elements, press kits…. And then the documents. Some of the things listed on pages eight and nine (especially the E&O insurance) are serious legal documents that could have cost thousands of pounds to have drawn up. The delivery materials could easily have eaten up the whole $15,000 advance and might even have cost more than the whole production budget of the film. I recommend getting quotes for all delivery materials before signing any distribution deal.

I hope this has given you some idea of what to look for, but let me say again, GET PROFESSIONAL LEGAL ADVICE BEFORE YOU SIGN ANYTHING!

What to Look For in a Distribution Contract

Practical Rain Effect

How do you create nice, thick, artificial rain for a dramatic fight scene, with no budget to speak of? Here’s how we did it on Soul Searcher.

This is a clip from the feature-length documentary Going to Hell: The Making of Soul Searcher. You can rent the whole doc digitally from the Distrify player below for a small charge, and you can watch Soul Searcher itself for free at neiloseman.com/soulsearcher

The clip shows how we created a fake downpour for a fight between the outgoing Grim Reaper, Ezekiel (Jonny Lewis, doubled by Simon Wyndham), and his replacement, Joe (Ray Bullock Jnr.). Ironically it was actually raining for real, but not heavily enough to show up on camera with the impact we needed. We’d had some rain bars made (lengths of hosepipe with holes drilled in them, strapped to bamboo canes) but we found the water squirted out in unrealistic jets. Luckily the location – Westons Cider in Much Marcle, Herefordshire – had a high pressure hose and we found that by pointing it upwards the water back down looking like rain.

See last week’s post for how to add rain (and snow) onto scenes after the fact.

Practical Rain Effect

Falsification of Precipitation

Yesterday I had to shoot some fake snow. Ironic, I know, given the weather lately, but it had to be composited over a pre-existing shot. Various software plug-ins are available to add snow to a shot, but I’m of the school of thought that says it’s always better to use a real thing. Even if it’s a fake real thing.

A few years back, Col sent off for some free samples of artificial snow from a weather effects company called Snow Business. (Eternal winter in Narnia? That was them.) When Miguel pointed out that a snow-covered shot of Belper’s bandstand in Stop/Eject looked like a still photograph in the edit, I saw a way to make use of these samples to bring some movement into the frame.

From the box of samples we picked one that appeared to be made of shredded carrier bags, because it floated the most realistically as it fell. I suspect you could make some of this yourself with a lot of patience and a few trips to Tesco. I set up black drapes with a redhead poking over the top to ensure that the snowflakes would be backlit without any direct light falling on the drapes. Then we rolled the camera and started sprinkling.

Afterwards it was a simple case of using screen mode (or ‘Add’ in Final Cut Pro) to combine the footage with the background shot. This mode gives exactly the same results as double-exposing a traditional photograph would: the black areas naturally become transparent because they have no brightness.

Must resist temptation to use snow-based puns...
Must resist temptation to use snow-based puns…

Several years ago, Col and I did exactly the same thing with rain, filming water from a hosepipe in his back garden against a black night sky, then layering it on top of scenes from Soul Searcher.

Must also refrain from rain puns. Uh-oh, I said "refRAIN"...
Must also refrain from rain puns. Uh-oh, I said “refRAIN”…

We also shot one scene for Soul Searcher in “real” rain – real in so far as it was actually there falling on the actors, but not in so far as it actually came from clouds. Perhaps I’ll upload a behind-the-scenes clip of that for my next post.

Meanwhile, if you’re going out to shoot in real snow, check out the tips I posted a couple of weeks ago.

Falsification of Precipitation

Music Cue Sheet

If your film gets picked up by a distributor, one of the many delivery materials they’ll ask for is a music cue sheet. If you’re unsure what one is or how to lay one out, take a look at Soul Searcher‘s as an example. See the Guerilla Filmmakers Handbook by Chris Jones and Genevieve Joliffe for more information on music cue sheets. For more on distribution and delivery materials, read this post about what to look for in a distribution contract.

Download Soul Searcher’s music cue sheet (.doc, 84kb)

Music Cue Sheet

Scott Benzie: Composer Extraordinaire

Scott Benzie conducts the Worcestershire Symphony Orchestra as they perform his score for Soul Searcher.
Scott Benzie conducts the Worcestershire Symphony Orchestra as they perform his score for Soul Searcher.

Today’s post is an introduction to Scott Benzie, composer of Soul Searcher, The Dark Side of the Earth and now Stop/Eject. (The series on VFX planning will continue next week.)

After becoming interested in music at a relatively late age, thanks to a synthesizer Christmas present and the inspiration of James Horner’s Krull soundtrack, Scott majored in music at Notthingham Trent University. In 2002 he wrote an impressive orchestral score for Jim Groom’s noir feature Room 36, conducting the Westminster Philharmonic Orchestra and recording all 50 minutes of music in a single day. Scott repeated this feat for Soul Searcher three years later, after responding to an advert I posted on Shooting People for a fully orchestral John Williams-style score – a goal which many people mocked as naïve or over-ambitious, but not Scott.

The composer’s other feature film credits include Ten Dead Men (dir. Ross Boyask), Fear Eats the Seoul (dir. Nick Calder), and Dinner with my Sisters (dir. Michael Hapeshis) which was released in UK cinemas last November. Several of Scott’s soundtracks have been released in their own right, including Room 36 which is available on CD from KeepMoving Records.

Scott recently took his first crack at some music for Stop/Eject and this is the result:

This is rough, unmixed and all done with samples. The finished version will, I hope, be recorded with live players. On Soul Searcher  we were able to persuade a choir and a symphony orchestra to perform Scott’s score for us. Here’s a clip from Going to Hell: The Making of Soul Searcher covering the music recording, one of the few things that didn’t go horribly wrong during Soul Searcher’s creation. (Remember that you can watch Going to Hell in full for a small charge at neiloseman.com/soulsearcher and Soul Searcher itself completely free on the same site.)

Visit Scott’s website at www.scottbenzie.co.uk

Scott Benzie: Composer Extraordinaire

Planning VFX: Computer Generated Imagery

Following on from last week’s thoughts on planning VFX shots, I’m now going to look at the issue of CGI vs. miniatures. In this post I’ll cover some of the advantages of choosing computer generated imagery, and next time I’ll look at the advantages of miniatures. As any regular readers will know, I much prefer miniatures, but I aim to be completely impartial in what follows.

To start off with let’s go back 20 years to Jurassic Park, the movie that really started the CGI revolution, and find out why Steven Spielberg chose this emerging technology over traditional techniques. (Skip to 13:12.)

So Spielberg favoured CGI because it produced more realistic motion. In fact, watching Jurassic Park these days I find the CG dinosaurs are easily differentiated from Stan Winston’s full size animatronics by the fact that the former move much more fluidly. Even when miniatures move “live”, i.e. without stop motion animation – vehicles powered by motors or pulled on hidden wires, for example – the motion is often less realistic than a CGI equivalent because the laws of physics dictate a small thing will always move differently from a large thing.

Next up, here’s a clip from Going to Hell: The Making of Soul Searcher, in which I discuss how I arrived at CGI as the best method of creating the spectral umbilical cords the script required. (You can watch the whole of this feature-length documentary at neiloseman.com/soulsearcher.)

So control was the key thing there. There were 80 shots, many with camera moves, and the umbilical cords had to be locked to the characters. Trying to achieve this with string and cables was just not realistic, or would have required so much manipulation in post as to make shooting a real element pointless. CGI can be controlled completely and adjusted quickly, without the need for reshoots.

Here are some other pros of CGI over traditional techniques:

  • No shooting required, so no crew to pay, feed, transport, etc. On a micro-budget where the crew are unpaid, CGI is completely free, whereas any kind of miniature shoot will always have costs.
  • CG elements can be tracked to moving plates without the need for expensive motion control cameras.
  • There are far more talented and experienced CG artists out there than model-makers.
  • You can create anything you can imagine, without any practical or logistical restrictions.

Can you think of any others? Let me know. Next time I’ll look at the advantages of traditional techniques.

Planning VFX: Computer Generated Imagery

Planning VFX

A few years back I taught a module on Visual Effects for filmmaking degree students at the SAE Institute in north London. Rather than getting into the nitty gritty of how to actually do VFX, it focused instead on how directors and producers should approach and plan for them.

Here is one of the examples I gave, using a shot from my 2005 feature Soul Searcher. Joe Fallow (Ray Bullock Jnr.) sprints down the platform of Hereford station as the Hades Express departs, bearing away the villain of the piece and the kidnapped love interest.

Finished shot from Soul Searcher
Finished shot from Soul Searcher

The train was a 1:18 scale miniature and was dropped into the live action plate by means of a simple, static matte drawn in Photoshop – essentially a splitscreen effect.

But what if I, as director, had chosen a different camera angle?

Alternate angle 1

To achieve this version, the model train would have needed to have been shot against a green screen to make it appear in front of Joe and the platform. This would have complicated shooting the miniature slightly, as lighting for a green screen can be quite time-consuming.

Alternate angle 2

Here we have the opposite; now Joe is in the foreground, so he’s the one that needs to be shot against a green screen. Since he and the station are full size, the green screen would need to be much bigger and would require much more light. And remember we’re now talking about an impact on the main unit’s time on a location, rather than a small model unit in a studio, so the cost implications are magnified.

Alternate angle 3

Finally, what if I’d gone for a camera move? Now we’re into motion control rigs, to record the camera’s movement on location and applied a scaled-down version of that same move to the camera shooting the miniature. Either that or the live action plate has to be 3D-tracked in post-production, and that tracking data fed into the motion control rig that shoots the miniature. More time, more people, more equipment, more money.

This is the first step in planning for VFX: understanding how your choice of shots influences the techniques required to achieve them and therefore impacts on the schedule and the budget. Stay tuned for more on this topic, and remember you can watch Soul Searcher in full for free at neiloseman.com/soulsearcher

Planning VFX

Urban Terrors

Urban Terrors by MJ Simpson
Urban Terrors by MJ Simpson

Last year I was contacted by scriptwriter, author and SFX Magazine contributor MJ Simpson, who was writing a book called Urban Terrors: New British Horror Cinema 1997-2008. Although I describe my 2005 feature Soul Searcher as a fantasy-action movie, it does have some elements in common with the horror genre, most notably the character of the Grim Reaper, and so Mike was keen to give it a mention in his book.

Urban Terrors is released this Saturday, December 1st, and can be bought online or on the highstreet from The Cinema Store and Forbidden Planet. Order before Saturday to get it at the discounted price of £15.25 (normally £17.95).

You can also read an interview Mike conducted with me, in which I discuss the making of Soul Searcher, on his website mjsimpson.co.uk

Here’s the blurb on the book, and remember that you can watch Soul Searcher in full for free at neiloseman.com/soulsearcher.

By the late 1990s, the Golden Age of British Horror Cinema was long gone. But like all the best monsters, the genre has risen from the grave and in the 21st century is going from strength to strength.

Developments in video technology and changes in distribution have seen a ten-fold increase in the number of British horror films made and released each year. From major studio pictures like 28 Days Later and Shaun of the Dead to cult indies like Freak Out and The Last Horror Movie, the new millennium is a boom time for home-grown horror. And many of these new films are contemporary, socially-relevant tales reflecting life in modern Britain; instead of creepy castles, their monsters and psychos stalk housing estates and tower blocks…

Urban Terrors is the first book to fully examine the British horror film revival, documenting and analysing the more than 100 movies that were commercially released between 1997 and 2008. It reveals how the changes in technology have enabled more people to make films, how changes in distribution – from VHS to DVD to VOD – are enabling more people to watch them, and how the mainstream media has failed to spot and comment upon this largely-undocumented phenomenon. And it examines how these new kinds of horror films have dealt with issues like disenfranchised youth, class division and social exclusion…

 ‘One of the UK’s foremost horror critics – what Mike Simpson doesn’t know about horror is not worth knowing.’ –film director Johannes Roberts

Urban Terrors

Piracy (Arrrrr!)

The cover of the official Russian DVD release of Soul Searcher
The cover of the official Russian DVD release of Soul Searcher

In this week’s FilmWorks masterclass one of the speakers mentioned a filmmaker whose work was the subject of repeated YouTube mash-ups. She was faced with a choice: invoke her rights and request YouTube take them down, or embrace these creative responses and re-interpretations of her work. She chose the latter, engaging with the mashers(?) and nurturing her fan community.

Following the DVD release of my 2005 feature film Soul Searcher, I became aware of numerous pirate copies floating about on the internet. My feelings were mixed. On the one hand, given the years of my life and the thousands of pounds I’d put into making the film, I was furious that people were ripping it off. On the other hand, I couldn’t help but be flattered that people had thought it worth pirating. One Russian pirate (arrrrrsky!) had even gone to the trouble of dubbing it into his language, albeit doing all the voices himself without any attempt to differentiate them or act in any way.

Having spent the last year crowd-funding Stop/Eject, I am all too aware of the importance of posting free content online – like this blog, or Stop/Eject’s behind-the-scenes videos – in order to promote myself and my current projects. But promote myself to what end? Like many filmmakers, my ultimate goal is to make feature films for a living, but how can I or anyone else make a living in a world where almost all media content ever produced can be obtained, free of charge, at the click of a mouse? In the last few years I’ve already witnessed the specific type of filmmaking it’s always been my dream to work in – the kind where movies are shot on real sets with real actors on real celluloid and exhibited on real celluloid – start to disappear. But is the industry as a whole doomed to oblivion by piracy?

Maybe not. Perhaps crowd-funding demonstrates a glimmer of hope. Even though some people would rather pirate Hollywood blockbusters than pay for them, some other people will pay for independent films that haven’t even been made yet. How can we account for this dichomoty? Community engagement. Sponsors of a crowd-funded film feel part of the project in a way that they never could with the latest Tom Cruise juggernaut. Perhaps if I could have talked to that Russian pirate (arrrsky! That will never get old.) while Soul Searcher was still in production I could have involved him in the project, making him the official translator or the online publicist for Asia or something. Co-operation rather than competition. Perhaps that is the way forward.

I’ll leave you with some highlights from the Russian bootleg of Soul Searcher.

Piracy (Arrrrr!)

Soul Searcher Press Kit

The cover of Soul Searcher's press kit
The cover of Soul Searcher’s press kit

Although Stop/Eject is still a long way off being finished, we’ve started to give some thought to the press kit. I remember being in the last week or so of Soul Searcher’s sound mix, Neil Douek and I desperately trying to get the film finished in time for the premiere, and at the same time I was having to deal with designing the press kits and getting them printed. That’s why I’m keen to start early this time around. Speaking of Soul Searcher’s press kit, I’m posting it below so if you’re wondering what a press kit should have in it, wonder no more. Click the images for larger, legible versions. I have Chris Jones and his Guerilla Filmmakers’ Movie Blueprint to thank for knowing what to put in it.

Review quotes and short and long synopses
Review quotes, contact details and short and long synopses
Cast bios
Cast bios
Cast and crew bios
Cast and crew bios
Production notes (the making of the film)
Production notes (the making of the film)
Production notes cont'd and some extracts from the director's blog
Production notes cont’d and some extracts from the director’s blog
Full credits
Full credits
Thumbnails, filenames and photographer credits for the accompanying CD of stills
Thumbnails, filenames and photographer credits for the accompanying CD of stills

Soul Searcher Press Kit