The tremendous development in the moving-picture business has
created a demand for dramatic films taken from long stories, or for
a reproduction entire of short stories, which offers an entirely new
and unexpected revenue to both publisher and author. Moving-pictures
have passed from the experimental period into an institution. The
reproduction entire of certain famous stories has given to the
enterprise a dignity which no one could have predicted, and the outlet
they offer for a by-product is considered perfectly legitimate.
All this produces new conditions in the relations between author and
publisher, and many new questions have arisen which neither one may
have anticipated at the time the contract was drawn. It is still
necessary to have interpretations of the laws governing dramatic
regulations, and of the rights involved.
It has been the practice of the moving-picture producer to buy his
plots outright, but with the new knowledge which has come to the
writers of scenarios and plots of the real value of these when once
assured of success, has also come a realization of the advantages of
making royalty arrangements instead of selling outright.
As far as the future is concerned, authors should familiarize
themselves with the various intricacies of this particular field before
signing contracts, making sure that the contract clearly defines
the exact basis of what they part with and what they retain, or the
percentage of ownership which the author holds in any one of the
various rights.
The following excellent summary is supplied by the "Authors' League" to
its members:
"While the business of motion photography is by no means new, it
is only within comparatively recent times that there has been a
general demand for scenarios and plots. Within the last two or
three years authors have found a new and unsuspected source of
revenue in the sale of 'Cinema' rights to their short stories,
and, although the returns were usually small, they formed a
welcome addition to the writer's income. Prices frequently
depended more upon the advertising value of the author's name
than upon the character of the material, and ranged from $15 to
$150; nevertheless, many persons not engaged in the usual forms of
literary work have reaped a substantial harvest from that source.
Until recently, subjects have been commonly confined to one reel
of 1000 feet in length, but owing to the rapid development of
the motion-picture business there has arisen a demand for more
pretentious photoplays, for 'feature films' of multiple reel
length, and, in consequence, many famous books and dramas have
been, and are being, photographed.
The demand is logical and promises to be permanent, hence the
producer finds himself in need of good subjects, and the author is
beginning to recognize his photoplay rights as something more than
an insignificant by-product of his labor.
It has been the picture-producer's practice to pay cash for his
plots, but royalty arrangements covering 'feature films' are
now being made. The latter method has its drawbacks, for, owing
to the existence of a middle-man, it is more difficult for the
photo-playwright to share in the full returns of his work than
it is for the author of a book or play. The book-publisher or
theatrical-producer distributes his goods directly to the public,
and the author receives a royalty on the retail price of the book
in the one instance, and on the box-office receipts in the other.
The motion-picture manufacturer, on the contrary, does not sell
his films to the theater or to the public, except in certain cases
noted later, but to an 'exchange' or series of exchanges, which in
turn leases to the exhibitor. Under this practice, therefore, the
author receives a percentage only upon the rental or purchase price
paid by the exchange to the manufacturer.
The exceptions above referred to, under which the author may more
nearly share in the full returns from his photoplay, is when state
rights, foreign rights, etc., to 'feature films' are sold or leased
for cash, without passing through the hands of the exchanges, or
when the producer elects to exhibit his films in his own or leased
theaters. It may be seen, therefore, that while a sale on a royalty
basis is in some ways unsatisfactory from the author's standpoint,
it is on the whole preferable to a cash sale.
The exchanges are, in effect, circulating libraries, which
distribute reels of film instead of books. The results are similar
to those arising from the English library system, under which large
book sales are almost impossible, and under which neither author
nor publisher profits greatly from a book's popularity. There is
this difference, however: the publishers of Great Britain do not
own the libraries, while in this country the exchanges--at least to
a great extent--are owned by the manufacturers.
Since many writers are totally unfamiliar with the conditions
of the trade, a word of explanation may be of value and avoid
bewilderment. Broadly speaking, the motion-picture field is
occupied by two factions--the 'licensed' manufacturers, with their
own exchanges and exhibitors, and the 'independents.' The former
are composed of ten producing firms, the patents and rights under
which they operate being vested in a holding company--The General
Film Company--which is the sales-agent for all regularly released
films of the coalition, and has about fifty branches. These
manufacturers make only 'licensed' films, and distribute their
regular releases only through the general film company, which in
turn leases exclusively to licensed theaters, of which there are
about 10,000 in this country.
The remaining producers, exchanges and exhibitors comprise the
independents.
When an ordinary film of 1000 feet is made, it is released for
exhibition on a given date, and is then termed a 'first-run
picture.' As it gradually wears out, this rental grows less, and
in about six months it is called in and destroyed. If the subject
is popular, reprints are made, and distributed as before. 'Feature
films' comprising several reels are sometimes handled as previously
noted. Foreign rights are most frequently sold outright."
=Don'ts for Authors=
"Don't give away your photoplay rights in selling a story for
magazine or book publication.
Don't include them in a dramatic contract without some clause
similar to that governing stock rights.
Don't sell them to the first bidder.
Don't sell them for cash if you can secure a continuing interest in
the film. It may be of value ten years hence.
Don't decide that your story will not make a motion-picture. It may
contain values which you do not see.
Don't decide that your story will make a good photoplay until you
understand something about the requirements and limitations of the
business. Remember, every film must be passed by the National Board
of Censors.
Don't forget that your story must be told in pantomime.
Don't turn your photoplay rights over to the stranger who offers to
adapt and handle your stories for one-half the proceeds.
Don't forget that you probably sold 'all rights' to your story when
you signed that receipt.
Don't sell the producer a right which you don't own, and make him
buy it over again from the present owner. He won't like it."