English to Bulgarian Law/Patents Cinema, Film, TV, Drama

In the film industry, an option is a contractual agreement between a potential film producer (such as a movie studio, a production company, or an individual) and the author of source material, such as a book, play, or screenplay,[1] for an exclusive, but temporary, right to purchase the screenplay, given the film producer lives up to the terms of the contract.

An agreement granting an option to purchase the rights in an existing original screenplay for a feature film. The option is for an initial period, which the potential purchaser can extend by a further set period. The rights-owner receives a one-off option fee which is offset against any income received after the exercise of the option, plus (if the option is extended) an extension fee which cannot be offset in this way. The agreement contains provisions giving the owner a share of net profits from any film that is made on the basis of the screenplay, including any remake or sequel.