A Brief Introduction About the Co Production Agreement
When production companies or producers work together for a project, then a co production agreement is needed. In this agreement, both the parties manage whole production work, and they also have equal rights along with the physical material of the movie project. There can be two or more producers in this agreement.
This agreement can also be taken between a production company and a broadcaster. It should be signed at the earlier production stage. The budget, production plan, and script of the contract should be included in the contract. If you want to know more about the co-production agreement, then you can continue reading ahead.
Who Takes the Co Production Agreement?
This agreement is a kind of joint venture on which two or greater than two production companies work on. There can be two or more producers working together for a film, and it can also be a short movie, documentary, or advertisement. In the film industry, this agreement plays an important role because it signifies the roles of the producers and their responsibilities, along with money handling.
Purpose of the Co Production Agreement
What is the co producer definition? Whenever two or more producers become a partner to work on a particular film project, then they become co-producers. Now that you are aware of it, you can easily figure out the importance of this agreement. This agreement is basically made to avoid any disputes and arguments between co-producers when the project is going on, and even after it makes profits.
Contents of the Co Production Agreement
This co production agreement contains the name of producers, project name, production company, genre, and other obligations mentioned below.
- The effective date of the agreement
- The names of the parties to the agreement, the financer as well as the production company
- The rights and the obligation of the financier and the production house
- Discussions about and/or acceptance of rough-cut(s) and final cut
- A higher amount of contribution from the broadcasters side
- Distribution of rights between the production company and the broadcaster
- Discussions about and/or acceptance of rough-cut(s) and final cut
- The co-producers have to provide administrative and consultative services. They have to arrange for the equipment, facilities which are required for the project.
Also, include a clause which should mention the profits which should be payable to such producers.
All the co-producers have the right to do an inspection and also copy records and books, which are maintained by every co-producer with reasonable notice only.
If all the co-producers agree, then they can also hire a certified accountant for the financial report, and this should also be mentioned in the agreement.
Other than this, all the co-producers should sign on the co-production agreement film template.
How to Draft the Co Production Agreement?
Things to consider:
Cash flow schedule, financial splits, financial plan, budget, dispute resolutions, and copyright holdings should be included in the agreement. Not every producer can handle administrative duties, and that’s why those duties are given to the experienced ones or knowledgeable ones after all the producers have agreed on it. Distribution work clauses should also be included in this agreement. The out-of-pocket expenditure should also be mentioned in this agreement. This contract includes money and expenditure due to which this is a sensitive case and should be handled in the presence of a lawyer. The experienced attorney can also resolve all the disputes with his knowledge and experience.
There are several negotiations points while signing a co production agreement, and one of them is roles along with the obligations of every co-producer working on the project. The ownership share of the film project should also be discussed. One can also negotiate over the benefits which would come from film production. If you aren’t able to do negotiations for yourself, it will be best to hire an attorney to do that for you, or you can also consult the attorney to get some knowledge on this.
Benefits and Drawbacks of the Co Production Agreement
It can’t be possible for a single person to produce a big-budget movie, and that’s where the co-producer comes in. It helps in getting more financial resources for a project, which can ultimately make it successful. It also helps to get more ideas and advertising options for the movie as two or more people would work on the same project.
It is also possible for producers to learn a lot from each other. All the partners have access to a project which they have signed together. If there won’t be any contract, then there would be chances that power producers can kick out the weaker ones at the time of claiming profits. That’s why there are many benefits of having a co-production agreement in a movie.
There aren’t any drawbacks to taking this agreement on legal terms because it would only divide the responsibilities- of all the producers.
What Happens in Case of Violation?
There isn’t a proper rule of punishment for the violation of rules in co production agreement, but when the clauses in the agreement are added, there is a separate segment for the violation of certain rules(1). All the producers can take part in deciding the punishment or fine for violation of rules.
All the co-producers have to work according to the agreement, and it is a major part of the financing documentation. By taking the help of the co-production agreement film template, you can prepare a good co-production contract. Make sure that all the rules and obligations should be mentioned carefully, along with the responsibilities of every co-producer. When all of the producers sign the agreement, no one can violate rules of it, and if someone does, then he/she has to pay the given fine for it.