The Indian cinema industry is one of the largest movie industries in the world, annually producing more than 1800 films in various languages. As large sums of money and resources are involved in transactions related to film-making, failure to record them, debts arising from production due to inactivity, and negligence of crew members can result in irreparable losses. The process of making a film from ‘script to screen’ involves many intellectual property rights, thus it is difficult to standardise the agreements required for a particular film. This is also due to the wide variety of agreements that may vary depending on the nature of the film. Some of the major agreements related to film-making are discussed below:
1. Director’s Agreement – A film director’s agreement is of great significance. It is executed between the producer or production company/studio and the director. The main contents of this agreement include: The objectives required to be fulfilled by the director, services rendered, demarcation of intellectual property rights between the director and production house, the terms of appointment and contingencies for termination of service, salary and its allocation, time periods for making these payments, other remunerations such as profit sharing and royalties, the exclusivity of the director during various stages of production & penalties in case of any breach etc.
2. Story & Screenwriter’s Agreement – The heart of any film lies in its literary content. The author of a story enters into a “Work for Hire” agreement with the producer wherein the producer acquires an exclusive right to lock a script until a specified period. Such agreements incorporate all the provisions with regards to remuneration, changes & rewrites of the script.
3. Collaborative Production Agreements - There may be times when a producer is unable to raise the required funds to complete a film project. A co-producer agreement enables a producer to work with another producer or a production company together or in partnership.
4. Artist Agreements – It is the agreement between the producer and the artist for availing the artist’s services. It contains a wide range of clauses from term of employment, salary, bonuses and provisions for profit-sharing, non-disclosure clauses to protect the confidentiality of the project, public liability insurance for covering damages caused in any accidents, mandates about the appearance of the artist. Similarly, the agreement may even contain an exclusivity clause preventing the artist from acting in any other project for a stipulated period.
5. Location Agreements - Filmmakers rely heavily on set designs and locations. A location agreement regulates the use of a specific property in the filming process. The production company or producer & the owner of the location sign a location agreement. The agreement includes provisions regarding the period of access, the period of use of the premises, the time period and the like.
6. Distribution Agreements - A distribution agreement that forms part of the post production process is negotiated between the production company and the distributor. This agreement contains the terms regarding the territory in which the movie is set to be released, the number of theatres/screens and provisions relating to the collection and profit sharing between the parties.
Usually, a feature film comprises a team of over 500 people, therefore making it imperative for a separate contract with every cast or crew member. Not all of these agreements complete the legal formalities of execution, legalisation and notarisation. Even though such agreements do not have any legal status, the entire industry follows this trend. In case of any breach of contract, the artists face trouble owing to the lack of legal status of such agreements hence, Mr. Anil Kawade, the Inspector General of Enrolment (IGR) & the Controller of Stamps, Maharashtra has reported that Bollywood, the Marathi film industry & the television industry shall be brought under the Stamp Duty Act, making it obligatory for partners to register the service contracts & pay stamp duty on the sum due to them. Also, a target of Rs. 1000 Cr of revenue has been levied upon these three industries.
In additions to these, film making often involves several other agreements during the pre & the post-production phases. Promises, transactions, and commitments form an integral part of film making & therefore a variety of legal agreements are pertinent for these relationships be regulated by law.