Movies and copyright

A basic issue for any production is "who owns the rights?" and "what limits are there on
any underlying literary rights that the project is based on?"

As to "who owns the rights?" Copyright gives the owner the right to make copies...and prevent
others from doing so, without the owner's permission.

A media project may be owned as a "copyright" by the entity that produced it, or by an individual filmmaker or producer. However, such a media project which is a "PA" (performing arts) copyrighted work is usually based on a screenplay.

A screenplay may be an original "spec" script or an "adaptation." Adaptations are based on a prior literary work, whether it be a novel, short story, magazine article, or even a photograph, or other shorter film. Those underlying works have their own proprietary rights. A production must obtain permission, usually in the form of a written contract granting an "option" and a "purchase price" for licensing the underlying work from its owner.

The media company can deal directly with the "spec" screenplaywriter, but for an "adaptation", the media company must deal with the writer of the underlying work as well as with the screenplaywriter.

If the company hires the screenplaywriter in some form (even with minimal payments), then the company is the owner of the screenplay. That's called a "work for hire."

A tricky situation is where the producer hires the screenplaywriter to adapt an underlying literary work that has been optioned for purchase by the producer or producer's company. The company, by "paying" the screenwriter may "own the rights" to the screenplay, but such rights are limited to the terms of the underlying work. If it's a fixed-term option for the underlying work (let's say "two years"), then upon expiration of the option period, the rights to make the project based on the "work for hire" screenplay, expire.

Today, an original work, fixed in an approved medium such as a "screenplay" has a common law copyright, even though it is not "registered" with the U.S. copyright office. Registration with the U.S. Copyright office is a good idea. It establishes the date of creation, and gives additional legal rights to the owner. A copyright is only valid to the extent all the underlying rights are owned or licensed. For example, for a film, the production company must ensure that all music rights, archival footage rights, rights to visual expressions such as trademarks, or even a painter's style are not infringed. Successful release and distribution of a film is based on obtaining all rights necessary. Without ensuring proper ownership interest prior to production, even an outstanding media work will sit on the shelf.