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D
EVELOPMENT AND
O
THER
C
HALLENGES
 A P
RODUCER
S
H
ANDBOOK
 
byKathy Avrich-Johnson
Edited by Daphne Park Rehdner
Summer 2002 
 
 
1
Introduction and Disclaimer
This handbook addresses business issues and considerations related to certain aspectsof the production process, namely development and the acquisition of rights, producerrelationships and low budget production. There is no neat title that encompasses thesetopics but what ties them together is that they are all areas that present particularchallenges to emerging producers.In the course of researching this book, the issues that came up repeatedly are those thatarise at the earlier stages of the production process or at the earlier stages of theproducer’s career. If not properly addressed these will be certain to bite you in the end.There is more discussion of various considerations than in
Canadian Production Finance: A Producer’s Handbook 
due to the nature of the topics. I have sought not toreplicate any of the material covered in that book. What I have sought to provide ispractical guidance through some tricky territory. There are often as many differentagreements and approaches to many of the topics discussed as there are producers andno two productions are the same.The content of this handbook is designed for informational purposes only. It is by nomeans a comprehensive statement of available options, information, resources oralternatives related to Canadian development and production. The content does notpurport to provide legal or accounting advice and must not be construed as doing so.The information contained in this handbook is not intended to substitute for informed,specific professional advice. You should seek out qualified legal, accounting or otherqualified professional advice to address your specific development or productionconcerns.I thank the numerous people who contributed to this work through interviews andfeedback.In particular, I would like to thank Daphne Park Rehdner for her astute and carefuleditorial input and lay out help, again.I would welcome feedback and suggestions on how this handbook might be improved orexpanded. Please send your comments to the author atkathy.avrich- johnson@humewood.ca.You can find a short bio atwww.humewood.ca. Kathy Avrich-JohnsonSummer 2002
 
 
2
TABLE OF CONTENTS
A. D
EVELOPMENT
 
I S
ECURING THE
R
IGHTS
……………………………………………………………………………4
W
HAT IS
C
OPYRIGHT
 
W
HO IS THE
C
OPYRIGHT
O
WNER
?
W
HO DO
Y
OU
H
AVE TO
D
EAL
W
ITH
?
O
PTION AND
P
URCHASE
A
GREEMENTS
 
O
PTION AND
P
URCHASE
P
RICES
 
N
EGOTIATING
W
RITING
A
GREEMENTS
 II F
INANCING
D
EVELOPMENT
………………………………………………………………………. 8
W
HAT DO FUNDERS REQUIRE
 
W
HAT COSTS GET FINANCED
 
P
RECONDITIONS TO SECURING DEVELOPMENT FINANCING
 
T
HE NATURE OF DEVELOPMENT MONIES
 
A
FEW THINGS YOU CAN DO TO GET AND MAINTAIN A BETTER RELATIONSHIP WITH AFINANCIER
III R
IGHTS
C
LEARANCES
…………………………………………………………………………….11
B
ASED ON AN UNDERLYING WORK
 
B
ASED ON LIFE STORIES OR TRUE EVENTS
 
R
IGHTS CLEARANCE PROCEDURES
(
GET PERMISSION FOR USE FROM ONE OF THE INSURERS
)
S
AMPLE
D
OCUMENTS
 
C
HAIN OF TITLE
…………………………………………………………………………………. 15O
PTION AND
P
URCHASE
A
GREEMENT
…………………………………………………………. 16W
RITING
A
GREEMENT
………………………………………………………………………….. 39A
SSIGNMENT OF
R
IGHTS
………………………………………………………………………..49S
TORY EDITOR AGREEMENT
…………………………………………………………………….51
 
D
EVELOPMENT BUDGET FORM
…………………………………………………………………. 54C
OST REPORT FOR DEVELOPMENT
………………………………………………………..…… 56
B. P
RODUCERS
, E
XECUTIVE
P
RODUCERS AND
C
O
-P
RODUCERS
-R
ELATIONSHIPS
 
I T
HE
P
RODUCER AND THE
P
ROCESS
……………………………………………………………. 57
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you most some really helpful items indeed.

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