When Selling a Script to Hollywood: Do You Still Own the Rights?

Introduction

When a screenwriter decides to sell their script to Hollywood, the question of retaining rights can be complex and often depends on the agreement in place. Understanding the nuances of copyright ownership and licensing can be crucial for any aspiring or established screenwriter looking to sell their work in Hollywood.

Copyright Transfer vs. License

Once a screenwriter sells a script to a producer or studio, the copyright typically transfers to the buyer. This means that the buyer gains full ownership over the script, including the ability to alter and adapt the material as they see fit. However, it's not an absolute rule; a screenwriter may negotiate to retain certain rights, such as a license to the script.

Screenwriters have to negotiate carefully because producers are generally risk-averse. They want full control and the flexibility to make changes to the script. Therefore, purchasing the copyright is more common than granting a license. The fee for selling the copyright often ranges from 2 to 3% of the estimated production budget.

Moral Rights and Screenwriter's Credit

While selling the copyright, screenwriters can still seek to retain certain moral rights, such as the right of attribution as the original writer. These rights ensure that the screenwriter is recognized as the creator of the work. For instance, being credited as “story by” is often a way to retain such rights. However, including these moral rights in the agreement can be challenging, especially when studios are involved.

Screenwriters who participate in the rewriting process may find it harder to retain these rights, as studios typically prefer to use a team of writers for each project. The credit “screenplay by” or similar may still be negotiable, but there is no guarantee of it.

What Exactly Are You Selling?

The rights being sold to Hollywood go beyond just the script. In recent years, the scope of what is sold has expanded to include “all rights throughout the universe in all media currently existing or yet to be invented.”

This expansive language deliberately covers all potential uses of the script, even as technology evolves. For example, satellite transmission was once a concern, as it was argued that such transmission fell outside the specified rights. Today, the inclusion of “media yet to be invented” is necessary to adapt to future technological advances, such as virtual reality or augmented reality, which might not exist at the time of the contract signing.

Contractual Agreements and Future Rights

Just because you sell your rights doesn't mean you relinquish all future rights. Most contracts, especially those under guild signatory agreements, guarantee certain rights to writers regarding sequels, adaptations, or other use cases.

However, these future rights are only guaranteed if the terms of the deal explicitly state it. It is essential to have everything worked out and written into the contract before the sale occurs. For instance, as a buyer, one would not want the same screenplay to be sold to another producer and used for a competing film. Therefore, the contract should explicitly prohibit such actions.

Conclusion

When selling a script to Hollywood, the issue of rights retention is multifaceted and closely tied to the terms of the agreement. Screenwriters must carefully consider their options and negotiate accordingly to ensure they maintain as much control and recognition as possible in the creative process.