The option agreement also provides for an «option payment», which is the amount to be paid to the author in return to give the producer the privilege of using the author`s script for development purposes. Depending on the negotiating strength of each party, this can range from a very small amount (for example. B a few hundred dollars, or even a dollar) to a larger payment (tens of thousands of dollars). If the other party wishes to extend the option period for an additional period, additional payments would be provided to the author. In most cases, this additional payment is negotiated as larger, even if the first payment is small. There is no fixed rule on the fees due for an option agreement. For the pricing structure, you first pay an «option fee» for the «option period». This is the money you pay for the exclusive right to develop your project based on the author`s content for a certain period of time, the option period. It is difficult to give figures from Ballpark, as they vary greatly from one agreement to another. The lawyers in our Entertainment Law Division have previously worked for major studios and have extensive experience in developing and negotiating test option agreements on both sides of the table.
If you or someone you know is testing during this pilot season in Hollywood, contact Boyd Law in Los Angeles. The term «option,» as used in the entertainment industry, is an agreement between two parties that must come into effect at some point. This can normally be with respect to a specific property, for example. B intellectual property. An actress or actor can make a deal to play a particular character in a movie, but can get a time slot to make the decision. It comes down to exercising an option. . . .