1. Option Price: A low-rate option price, no more than $1,000 for first 12 months, $2000 for second 12 months, $4,000 for third 12 months. Paul wants all option payments to be applicable to the purchase price. 2. Purchase Price: Paul wants to pay only WGA minimum for a low budget picture ("low budget" means less than $5,000,000, and the WGA minimum is currently $51,290). 3. Credit: Paul wants credit to be according to WGA Minimum Basic Agreement, because he plans to have the script rewritten by another writer. 4. Contingent Compensation: Paul will agree to 5% of Net Proceeds, reducible to 2.5% if there is another credited writer. 5. Passive Payments: Paul will agree to 50% of original compensation for a theatrical sequel/prequel, 33% for a theatrical remake. But Paul wants to pay, for primetime TV episodic, only $1,000 (30 minute episode), $1,250 (31-60 minutes), and $1,500 (61 minutes or more), and Paul wants to reduce those amounts to only 50% of those amounts if the series is on cable TV or streaming service (i.e., Netflix, Hulu, etc.). 6. First and Subsequent Writing: Paul does not want to allow Jones to attempt the first scenario because he plans to have the script madeby another writer. Paul does not want to allow Jones to draft sequels/prequels, but if Jones does so, then Paul will negotiate compensation for the writing services and will not then pay Passive Payments. 7. Grant of rights: Paul wants grant of all rights in screenplay, especially stage rights because he anticipates creating a stage musical version of the motion picture. 8. Premieres/Festivals: Paul will invite Jones to premieres and film festivals, but will not provide travel expenses. John Jones wants these terms: 1. Option Price: John wants an option price of $5,000 for first 12 months, $5,000 for second 12 months, and he doesn't want option periods to exceed two years. John doesn't want any option payment to be applicable to the purchase price. 2. Purchase Price: John wants either WGA minimum for a high budget picture ("high budget" means $5,000,000 or more, and the current WGA minimum is $104,996) or 2% of the final production budget. 3. Passive Payments: John wants 50% of original compensation for a theatrical sequel/prequel, 33% for a theatrical remake, TV episodic payments of $2,000 (30 minute episode), $3,500 (31- 60 minutes), and $6,000 (61 minutes or more), with same amounts paid for any series, whether on Big Four networks or on cable TV or streaming services. 4. Credit: John wants a guarantee of "written by" credit. 5. Subsequent Writing Services: John wants first option tomake any rewrites, compensation to be no less than WGA minimum, and first right of refusal to write any remakes or sequels/prequels, compensation to be no less than WGA minimum for a high budget picture.6. Grant of Rights: John wants to hold back certain rights, specifically, thediscuss whether your client's position on each term is reasonable (in line with industry standards) or not, and as necessary, what a reasonable compromise would be in order to secure the rights from John Jones?

Answer rating: 100% (QA)

In analyzing the terms presented by Paul and John Jones lets discuss the reasonableness of each position and potential compromises that could be considered 1 Option Price Pauls Position Paul proposes ... View the full answer