321 Rights

Under a production, financing and distribution agreement the company will normally acquire all rights which the producer owns in the project. This means that, in addition to the right to distribute the film in all media throughout the world, the company will also acquire all subsidiary and ancillary rights such as merchandising rights, music publishing rights, publishing rights and all income from these areas. This is to be contrasted with the so-called ‘negative pick-up’ or pre-sale agreement1 where subsidiary and ancillary rights will remain with the producer, who may earn additional income from them, and the

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