Dealing With the Fallout of Passion River: The Two Things You NEED In Any Film Distribution Contract
Passion River films was acquired by BayView Entertainment, but BayView claims they're only responsible for Passion River's assets, not losses. Can filmmakers protect themselves from this in future?
In case you are unaware, distributor Passion River abruptly shuttered earlier this year, leaving hundreds of filmmakers in the lurch, being owed thousands of dollars and rendering their films in a legal gray zone that’s still being sussed out.
I wish this was the first time like this something has happened but unfortunately it’s not and it’s likely not to be the last. (Anyone remember Distribber?) There will be another incident like this, guaranteed.
So what can filmmakers do to protect themselves from this kind of situation? Whether or not Passion River intended this kind of collapse or not, one thing is clear: they were looking out for their own interests, and not their filmmakers.
Too many times I’ve seen filmmakers finally finish a project only to lose it and all they’ve worked for thanks to predatory distribution practices and the filmmaker’s lack of understanding of how the business works.
Gone are the days of MGs (minimum guarantees) but so should be gone are the days of nascent filmmakers losing their shirts because they don’t know how to protect themselves or what to ask for when signing distribution deals.
Please note: NONE of the information in this post should be considered substitution for legal advice. I am NOT an attorney and you should always work with a reputable law firm when creating and signing distribution deals.
What I am is a filmmaker and marketer/PR professional who has spent years learning all sides of the business to make sure that I didn’t lose my shirt with my own film. As I launched my movie into the festival space, I was stunned at the lack of understanding so many filmmakers had on this side of the business and found myself answering questions from numerous filmmakers seeking guidance on what to do with their finished projects.
And I get it, I do. This isn’t what we want to focus on because we’re creatives and the nasty business of distribution isn’t ‘creative’. But that’s what predatory distributors are counting on when they acquire filmmakers’ projects. If you’ve played at a festival anywhere, no doubt your info has been harvested by some of these lower and mid-tier distributors who scrape your information from the internet and reach out with an offer to acquire your title.
Most of the time, the filmmakers will never see a dime and their years of hard work and hard-earned investment will vanish before their eyes and they’ll have no legal recourse because they signed away their rights.
Please note: this post is free to read but I’m hoping you’ll subscribe and spread the word as I grow my consulting services. Consulting was never a space I intended to get into but I have since learned the extreme value that a 20+ year career in marketing and public relations has when it comes to indie filmmakers and creatives. As none of us are really working at the moment due to the ongoing strikes, the support would be very much appreciated.
Two of the things you NEED to add to any distribution contract are a BANKRUPTCY CLAUSE and a SALES CLAUSE.
Your entertainment attorney should work both of these clauses into your contracts in case the distributor you sign with either goes bankrupt or is acquired by another company. In this case, both of these clauses would have been useful for films associated with Passion River. The bankruptcy clause should state that in case the company goes bankrupt, the rights to the film are returned to you. The sales clause should state that if the company is acquired by another company, you have first right of refusal to get the rights back.
Neither of those two clauses are standard in you distribution agreements but as we’ve seen time and time again, are NECESSARY to protect yourself and your films.
I hope this has been helpful, and I’m just getting started on this journey to help indie filmmakers and creatives get their work out into the world in front of a larger audience.
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You can find more information about my company, KLA Media Group and my services at www.klamediagroup.com.