What filmmakers should know before signing a distribution deal
Filmmakers receiving distribution offers should investigate companies before signing contracts, according to industry professionals. Research includes examining the distributor’s previous releases, checking legal records for outstanding lawsuits, and consulting other filmmakers about their experiences with the company.
Entertainment attorneys recommend hiring legal representation early in the process, though free services are available through organizations such as the Filmmakers Legal Clinic at Cardozo Law School and the Entertainment Law Clinic at Chapman University. Producer representatives typically charge 5 to 15 percent commission rather than large upfront fees.
Contract terms require careful review, particularly regarding deal structure and rights periods. Gross deals split all earnings immediately between filmmaker and distributor, while expense cap agreements deduct marketing costs before payment. Standard contracts last five to seven years, though shorter terms with performance-based extensions offer better protection.
Filmmakers should secure audit rights and reversion clauses that return film rights if distributors fail to fulfill their obligations. Multiple distributor interest creates negotiating leverage, while quarterly accounting statements help track performance and identify payment discrepancies early.
