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538 Question Posted On: Date: 01.29.2012 Time: 08:15:43 Posted By User From: Los Angeles
Subject: Deal memo variable salary
Question Posted:
Is it possible to set up a deal memo for an editor where they get paid more while we're shooting and less when we're done?

We want to hold to 12 hour days when shooting and 8 after, so we want to pay accordingly.
Greg Answered:

Its probably more common for the editor to be employed after the shoot as much as it is for them to be employed during. Some editors on small films are employed on a flat basis, regardless of how long the editing takes, while others are on a weekly basis. Either way, yes, you can always agree to pay more at one point and less on another (for example, say the deal is $20K. you can say they are paid $2k a week during production and $1k a week during post if you want , or whatever). Of course, if this is a union deal, then you have to meet the minimum in total. Hope this answer helps.

537 Question Posted On: Date: 01.22.2012 Time: 13:13:48 Posted By User From: Studio City
Subject: Using lyrics to a song in movie
Question Posted:
Hi Greg, I know this is stupid to ask, but if my actor sings the Beatles 'Shake it up Baby' without the actual song being in the movie, we still have to pay someone, right?
Greg Answered:

Correct. You need a license from the owners of the actual composition and lyrics (which if I remember correctly is Michael Jackson and Sony). For music, you always need a license from the owner of the underlying music regardless of whether you use an existing recording, you have your own actor sing (or even say the words or whistle), etc. If you are using someone else’s recording of the song, say the Beatles themselves, then you also need a license from the owner of the recording.

536 Question Posted On: Date: 01.21.2012 Time: 03:17:34 Posted By User From: Concord, Ca.
Subject: Distribution - budget disclosure
Question Posted:
Greg, I read that, if you're negotiating with a distribution acquisitions exec and he asks what your budget was, you should tell him you made your $500,000 film for “just under $1 million”, because your true budget figure is nobody’s business. This is obviously a negotiating tactic, but I was wondering if there’s a point during deal making when you must reveal your true budget?
Thanks, and have a great day –
Craig Tarry
Concord, Ca.
Greg Answered:

Generally you do not tell the buyers the budget but simply say under $x, or in your case, yes, you are right, under $1 mil. If you tell the buyers its $500,000, they will limit their offers based on that . However, what you actually spend is not relevant. The perceived value of the film, based on cast, director, visual effects, etc, is what matters. I have had clients spend millions and no one values the film at more than $1 mil, and I have had others spend under a million and with the cast and look etc it looks like a $5 million film. As to when you might have to reveal the actual budget, the only place that comes up is in the delivery schedule. One of the items a domestic distributor might require is a certified final cost (they deed the amount for the MPAA registration). Generally I don’t agree to provide a full certified final cost itemized statement, but simply will provide them a statement as to the total final cost.

535 Question Posted On: Date: 01.17.2012 Time: 11:11:19 Posted By User From: Los Angeles
Subject: Casting Fees
Question Posted:
Hi,

I'm producing a feature for 1.5 million. Casting directors are asking for 15k to cast the project (3-5 name roles). They are established and CSA. Is this a fair price?
Greg Answered:

$15k on a film of that budget is the norm. Although its for casting all of speaking roles, not just 3-5 roles. The rate does not really change whether its 5 roles or 15 roles. Its for the casting of all speaking roles, regardless.

534 Question Posted On: Date: 01.14.2012 Time: 20:07:54 Posted By User From: Seattle, WA
Subject: producer fee on out of town indie
Question Posted:
I have recently been hired to produce a film with a budget of 300k. Film shoots on location across the country. My time will be considerable with this particular project due to low budget responsibilities.

My question is what do I charge to bring the film from paper to completion and for housing, per diem, etc.

It's tricky because I have been part of the process declaring the script CAN be made for that amount and now need to come in and request my fee's.

Appreciate your advice!


Greg Answered:

Producer fees vary depending upon the budget, whether the producer is the one who developed the project from its beginning, or joined later, or is more a line producer in it only for the production side. Moreover, the producer’s track record and history is very important. The rule of thumb is 5% of the budget of the film, for budgets under $5 million. That said, its not uncommon for producers at budgets of this level to take nothing and put all the money in the film. Given your budget, if you were just a hired gun on the film, I would say $15,000 give or take. But the range is in the zero to $25k depending upon all the factors I mentioned. Either way, if the film is on location you still get per diem, travel, accommodations ,etc

533 Question Posted On: Date: 01.03.2012 Time: 15:21:36 Posted By User From: Los Angeles
Subject: How To Stop IMDB
Question Posted:
Hi Greg,

We have kind of an urgent situation. Over a three day period on IMDB, our rankings went from a 7 to a 4.

We've also been harassed night and day by someone on IMDB's message boards who keeps spreading slander and lies about the film.

We've approached IMDB's legal counsel through Amazon (parent company), but to no avail.

Obviously, IMDB hides behind the 1st Amendment, but is there anything we can do to stop both the ratings decline and the slander on the message boards?

It seems like filmmakers are the most exposed to these kinds of attacks and IMDB actually invites them to get more hits to their site.

Any thoughts would be appreciated. Thank you.
Greg Answered:

First, this site is not for legal advice. In particular, potential litigation matters are highly fact dependent. In this particular case, while I am not a litigator, what rights you may have against IMDB, if any, will depend on a lot of facts not stated here (like what was said may or may not be slander/defamation). I have found in the past that IMDB does have a process to remove erroneous information. However, if people are simply stating their view, such as they don’t like the film, that is not something IMDB will change nor is it actionable. In either event, I am not qualified to provide any guidance on 1st Amendment, defamation or other litigation matters.

532 Question Posted On: Date: 12.27.2011 Time: 07:19:27 Posted By User From: Concord, Ca.
Subject: Craig Tarry
Question Posted:
Hello Greg,
I'm planning a Feature shoot that would qualify for the SAG Modified Low Budget Agreement. All actors would be SAG and the production company signatory as per SAG rules. I also need to hire five extras for the shoot. Three for one scene and two for another, all would work one day each.
Do they also have to be SAG, or can I get by with local non-union extras or can they sign a waiver or something like that?
Thanks as always - Craig
Greg Answered:

SAG has a process by which non-sag actor and extras can be used, although you have to pay SAG minimum (if you were Ultra Low Budget that allows for non-SAG). There is a requirement that they end up paying SAG dues however, as I understand it. Suggest you talk to your SAG rep.

531 Question Posted On: Date: 12.10.2011 Time: 13:41:37 Posted By User From: Boston
Subject: Film with unknown Actors
Question Posted:
Hi, I have a fairly simple question I guess. Edward Burns recently spoke about how he shot his new film for 9k. He will get loads of attention because he's a celebrity, but if one were to shoot a film with that same budget/quality and unknown actors what kind of deals/money could a filmmaker expect to be offered to them for such a film? After you've been through the film festival circuit what happens next? Thanks in advance.
Greg Answered:

First of all, he shot the film for a reported $30k or so as I recall. By the time the film was released I believe the total cost was in the $500k -$800k plus range. Shooting a film is one thing, getting it finished with post, music, etc is another. Second, his first film was one of those freaks that hit. And at quite a different time in the business. Not to mention, it was in Sundance which changes all the rules. Today, typically a film like what he shot that did not make it into a major festival, drama with no name actors, would garner nothing or close to it (maybe $25-30k on the high end but by the time you paid for delivery elements, insurance etc you would eat it all up). If you want to make a film like that with no names and look at it like a short in the dark and slim odds of success, then go for it. But the odds are very very very long.

530 Question Posted On: Date: 12.09.2011 Time: 11:31:49 Posted By User From: Santa Monica
Subject: re: Suing an Advertising Company
Question Posted:
Hi Greg,

We recently released a film nationwide into theaters this past summer that did fairly well. Our question is one of the cable companies in the Midwest did us much harm by not running our TV ads as agreed verbally. They simply forgot. We lost much money as a result.

I know you've said you don't do litigation and we're not asking you for advice, but any thoughts on whether we could sue in California or do we have to sue in Kansas?
Greg Answered:

Your question is even more a litigation question then simply asking if you can sue or not. Jurisdiction is a technical litigation question. If the Kansas company does business here, you might be able to sue here. If the contract was deemed made here, you could use here. But more than likely you have to sue in Kansas. That said, even if you could sue here, because they are from another state and you are here, it would likely , be a federal case, which gets costly. But the rules on where you can sue are very complicated so you need a good litigator to make the decision. As for suing in the first place, generally you have a breach of contract claim. But the issue of damages is the problem. Since they did not run the ad, you can sue for the cost of what you paid them, or if you went and took out an ad via another company, the cost difference in the ad for what you paid vs what they were going t charge you. But I gather from your question you want to sue for the consequential damage…the estimated losses from the theaters. I don’t know if you can sue or not for that. And even if you could, the damages are extremely speculative. There is also the issue of mitigation. When you knew they did not run the ads did you take steps to have them fix it, or take out ads elsewhere to replace them? all of these are questions a litigator would ask.

529 Question Posted On: Date: 12.01.2011 Time: 17:13:01 Posted By User From: Boston
Subject: Merchandise Royalties to Actors?
Question Posted:
My actors for part 1 of a movie trilogy sign agreements to also get paid a percentage of merchandise profits. Is that common or even practical to do? Most actors want to get paid if their images is being used on apparel/merchandise. If so, should I set up a separate online store for each part of the trilogy so I know how much money each movie made so I can determine how much each actor is owed from each part of the trilogy? Having to set up 3 online stores for each part of the trilogy seems like it's going to be an accounting nightmare waiting to happen. How would a movie studio handle this?
Greg Answered:

There are two different aspects of merchandising revenue. First, merchandising revenue may be part of gross receipts for calculating the net profits share of cast and crew. Second, actors typically get a percentage of merchandising for items that their name or likeness appears on. If the actor does not have a net profit participation, nor does the item have his likeness or use his name, then it would NOT be typical to give any percentage. In other words, actors don’t get a percentage of general merchandising revenues from a film. As for tracking, studios and everyone else tracks by item. If an item sells and its related to film 1, it goes to film 1. Etc.



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