Legal Question in Entertainment Law in New Jersey
Feature Film Distribution
I am currently in the delivery stages for an independent horror film. My producer's rep is also acting as my foreign sales agent, and they want me to complete three forms: a UCC-1 Financing Agreement (naming me as the Debtor and themselves as the Secured Party), a Mortgage of Copyright and Security, and a Short Form Assignment of Rights. I have no idea what the purpose of these forms are, but they look scary. Can someone enlighten me?
3 Answers from Attorneys
Re: Feature Film Distribution
They are documents that are intended to give security to the producer's rep though I don't know why they should need them. If you do sign them, think of them as a mortgage on your house except the house isn't the collateral, the film is. I would advise against signing unless you get an attorney to review your situation.
Re: Feature Film Distribution
Nobody can characterize a contract or other legal document from it's title alone. That said, these titles sound quite inappropriate to a foriegn distribution deal. It sounds like you are giving them your film. They should be giving instead of you. Get an Attorney.
Re: Feature Film Distribution
To be honest, those docs are typically used in lending situations, such as a P & A loan from a company like Palisades. The idea is that the documents give an interest to the lender the film. Another attorney aptly described it as a mortgage on your house. The UCC is a lien filing with the government that provides public notice of this fact. Most distributors do not need such an aggressive approach to secure their territory rights, especially where there might be several distributors in the mix.
If you would like to schedule a consultation with our firm, please let me know and congratulations on making so much progress with your film!
Kaiser