Term Option: this is the period during which you must exercise the option to acquire the underlying rights. The term is exclusive, which means that the copyright holder cannot sell to others the underlying rights you have chosen over the life. This term gives you time to secure things like talent, financing and distribution, regardless of whether someone else will step in. If the term expires before you have exercised the option, the copyright holder is allowed to sell the underlying rights to another person. Granting rights: A copyright holder has many diverse and divisible rights to his work, such as audio-visual, stage and literature, as well as rights to make sequels and prequels. When selling rights, the copyright holder can decide which rights to sell and keep. Make sure you have the underlying rights you need before you enter into an option or acquisition contract. A general rule of thumb is that the more you want to buy the more underlying rights, the more you have to pay. Acquisition contract: The acquisition contract must be negotiated at the same time as the option.
As soon as the option is exercised, the terms of the sales contract come into effect. If these conditions do not apply, you essentially have only the right to negotiate these terms. The potential risk is that you have paid the option fee and have worked your project to find that the copyright holder is demanding an undue amount or conditioning the sale with incriminating provisions. Nglish: Translation of the underlying for Spanish spokesperson credits: This section will not conclude or break a buyout agreement, but it must be considered in advance. The author of the underlying property will want some kind of credit in your new work. Thesaurus: All synonyms and antonyms for the underlying There are other financial instruments based solely on the movement of debt and equity. There are financial instruments that rise when interest rates rise. There are also financial instruments that fall when share prices fall.