You started with only an idea. That idea gained concrete elements and became a concept. The next phase is to include tangible aspects that will allow you to create a project. In summary, development consists of two elements: obtaining finance and development of the actual audiovisual project. It is the conversion of idea into reality, from script synopsis to outline proposal to schedule. Of course, not every project is the same nor do they start the same but by the time they become an audiovisual project they should have everything needed to go into preproduction phase.
Plan and budget
During development, ideas and concepts are turned into screenplays; literary rights are acquired or exercised in case of option agreements, and technical and creative teams are defined. In short, this is the stage of a film’s life cycle in which the ownership over the film first takes shape. All this is of course managed and controlled in a plan and with a budget.
Many of the hidden costs of production will become evident during the preparation of the schedule: a comprehensive, chronological document transforming the script into scenes ensuring the right people and resources are available at the right time. Plans and budgets also include expert-calculated items like finance costs, insurance (including completion bonds) and a contingency fund to cover unexpected expenses.
For dealing with this planning and budgeting, it is vital to efficiently manage all the third-party rights entrusted to the producer as well as the ones arising from the project, by paying close attention to the terms of relationships between the producer and each stakeholder involved in the project: from actors and script writers to investors and insurance companies, and from composers and performers of the music played in the project to broadcasting organizations and streaming platforms that will showcase it to the public.
Here are the main reasons for and uses of the detailed plan and budget:
To determine the cost in time and money for a production
To share the information with potential partners
To decide whether it makes sense to pursue the project under the proposed conditions
To discover the information needed to shape the project and present it in pitching
To create the financial information needed to format into a specific template that is required by a particular call for public incentives
IP in development
While you are putting everything in place to move into preproduction, IP clearance becomes even more relevant in order to avoid costly surprises during the production phase. At this stage, the paperwork is continuously increasing and you have assumed different obligations and deadlines (and payments), some of them related to IP clauses. An effective plan includes the mapping of the contracts that are essential for the development of a movie or television series in a way that is robust and, of course, allows you to explore your content without infringing third-party rights.
For example, if the script says that the lead character will sing a song during the first scene of the movie and you have not yet secured the rights over that song, that is a problem not only in your plan but potentially in your budget due to the need to either obtain a license for a higher price than budgeted or to rework the script. In the case you have already moved into production, you even might need to reshoot the scene with consequences in terms of time and money.
Some of the essential stages of an effective plan are as follows:
Identification and management of contracts: make an exhaustive list of the contracts that will be necessary for the project. You should have a better vision of the needs of the project now. Prepare drafts (ideally with the advice of an entertainment lawyer) so you don’t have to prepare them at the last minute. Also dedicate time for record-keeping and the management of those contracts. Sometimes, you will look for a contract 10 or 20 years after the end of the project. Anything important, such as conditions that impact your project and payments triggered by milestones, should be carefully tracked.
Negotiation of terms: when negotiating contracts, be clear and specific about the rights obtained and about each party’s responsibilities and remuneration. It is important to ensure that contracts are signed before the materials and rights in question are incorporated in the project. When it comes to IP rights, think about how you plan to use the content and reflect that in the conditions such as purpose, duration, exclusivity, territory, termination causes, warranties, indemnity and penalties for infringement. Remember that, in case of conflict, you might end up in a lengthy and expensive lawsuit unless you have included an alternative dispute resolution (ADR) clause. WIPO offers not only ADR clauses to include in your contracts but also detailed information about this alternative.
Content protection: as more content is created and the list of collaborators grows longer, keeping track of all the intangible assets involved in the project must be ensured and that all rights over new materials are governed by a written contract. This is essential for the producer to maintain all the IP rights necessary for marketing and distribution. This also includes secondary elements of the project, such as characters, soundtrack, fictional brands and designs. Some of those elements might become an interesting source of revenue such as through merchandising and licensing, or spin-offs in the future.
Legal consultancy: aim to obtain legal advice before it is too late. Appropriate legal advice can often prevent problems that might damage the whole project. While you can do a lot of the laborious work yourself, it is important that you check with a lawyer on core elements of your project, as well as the IP clearance aspect dealt with in the separate WIPO guide mentioned before.
Communication: in addition to written contracts, clear communication with all partners involved in the project is very important. They should be aware of the contractual needs of the project and the measures they need to implement (for example, not to use a painting or a brand in a scene because there was no agreement from the right owner). In some cases, it is also important that they know the terms and conditions governing their involvement. For example, some of your collaborators might have expectations to appear as coauthor of the script or coproducer, while you might think differently.
While the concept was the basis of your project development, the key issues mentioned before also remain true for the development of the project. Ensure you update all the elements mentioned therein. If, during the development of the project, you move into a different genre, market or even business model, make sure to update accordingly. If you are still looking for partners, it’s important to mention your existing agreements when you pitch your current project, for example, through the type of agreement you are willing to offer in the deal memos as mentioned before.