This post will cover the key provisions of an agreement to distribute filmed entertainment, usually made between a producer or licensor (”Producer”) of a motion picture and a distributor (”Distributor”).

Picture: This provision covers the specifications of the film to be delivered by the producer to the distributor. For instance, how long or short must the film be? What type of film, in terms of content and intended audience, will be delivered?

Territory: What is the scope of the agreement? Some distribution agreements are for worldwide rights to distribute the film; others cover just domestic or foreign rights.

Term: The parties must agree as to how long the distributor’s exclusive rights will last.

Rights Granted: This provision will spell out whether or not the distributor’s rights are exclusive. The scope of rights given to the distributor will vary from agreement to agreement, but are usually exclusive within a given territory.

Definition and Disposition of Gross Receipts: “Gross receipts” is a term used in the film industry to measure the success of a film. While there is a generally accepted definition of gross receipts, the agreement should nonetheless define the term. Generally speaking, the term “net receipts” is defined as gross receipts minus all distribution expenses.

Motion Picture distribution agreements will vary, but every agreement will cover these provisions in detail. Both producers and distributors are wise to consult an experienced entertainment attorney before signing a distribution agreement.

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