| Commentary

332 Negative pick-up or pre-sale agreement

| Commentary

4: OTHER FINANCIAL ARRANGEMENTS

332 Negative pick-up or pre-sale agreement

There are several differences between a pre-sale or negative pick-up agreement and a full production financing and distribution agreement. The most significant is that in a negative pick-up/pre­ sale agreement the distributor is obliged to pay the advance or minimum guarantee only on delivery of the film (occasionally a percentage is payable on first theatrical release), whereas under a production financing and distribution agreement the producer will be entitled to receive funding in stages as and when required during the production schedule.

A producer who is a party to a negative pick-up

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to LexisLibrary or register for a free trial