12. AGENCY ASSOCIATED WITH AN INTEREST. The sales agent/distributor usually wants a provision that links the distribution agency relationship to an interest in the image. This is due to the fact that the sales agent/distributor spends money on marketing, distribution and sale of the image and may also have granted an advance to the producer and does not want his sales agency or business partnership to be terminated by the producer. Indeed, this is an unusual agreement, as this specific agreement does not contain a “no decision” / “no omission” clause that virtually all traders/commercial agents need so that their investment in advance, advertising, marketing and print is not lost if the manufacturer decides that he is unhappy and wishes to terminate or terminate the contract. In accordance with the provisions of the distribution agency agreement, the agent was granted extensive and unlimited rights to deal with the programming in question. In addition, and as with many similar agreements that have arrived on my desk over the years, the registration and reporting obligations contained in the agreement are few and the auditing and accounting rules insufficient. Unlike lawyers, accountants, banks and even estate agents, there is no regulatory framework in Britain that requires film sellers to keep their client`s money separately in a client`s account. While the nature of a primary agent relationship is likely a fiduciary duty, nothing of the same is mentioned in the agreement under consideration in this case. It is better to define a particular obligation in an agreement rather than to inform what the law should or could imply. In addition to the amount of selling costs, a licensor must take into account the marketing and distribution costs incurred by the agent when selling a film.

The cost of participating in film markets such as Cannes Marche du Film, European Film Market berlin or the American Film Market is considerable, including the costs of accommodation, travel, market accreditation, rental of film stands, film posters, sales sheets, production of trailers, demonstrations, commercial announcements and hotels and hotels. Most sales agents withdraw these costs after recovering the sales commission from above. It goes without saying that these costs can have a considerable impact on producer participation. In order to protect the end result, it is strongly recommended that producers negotiate a right to approve the final marketing budget along with an expenditure cap. The agent must be asked to obtain the manufacturer`s written consent before exceeding the agreed ceiling. Good sales agents are picky about the projects they participate in, because they only make money if they sell a movie; You have to believe that the project is commercial and that it has value. If you haven`t connected an agent before shooting, post-production or the raw cutting phase is the closest, as the agent can help you permanently cut your film and give specific instructions on the market reaction.. . . .