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Screenplay collaboration agreement: How-to guide

Writing is a process that requires dedication and effort to start and complete any script. Many writers find motivation and support in a writing partner who can bounce ideas off or help move the project.

However, when more than one person is involved in a project, disputes about earnings and credit can arise that can impact the project. It's crucial to have a written agreement signed before starting any work. An agreement sets the tone for a smooth project.

Importance of collaboration agreement for writing partners

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Writing partners may not be considered "partners" in creating the work without a collaboration agreement. Disputes about ownership and control of the final product may arise. This could have particular significance if your writing team separates or the partnership dissolves due to unavoidable circumstances.

A screenplay collaboration agreement is a written mutual agreement between two or more people to create a "joint work." This agreement protects each party's ownership interests and provides for a division of all profits or debts arising from the project. The parties can also outline any limitations on withdrawing or terminating the arrangement.

If you and another person want to collaborate on a screenplay, it's essential to write down the terms of your agreement. This can ensure that you understand your obligations and are mutually responsible for laying the foundation for a good working relationship. The attached template on this page will help you write the agreement, and from there, you can start with the writing services for your screenplay.

What are the key aspects to consider for a screenplay collaboration agreement?

Identifying pre-existing contributions

When creating a joint work, it's essential to identify any pre-existing contributions before collaborating to ensure ownership rights are protected.

Following the union regulations

If you are a member of a union, such as the Writers Guild of America, there may be specific rules and regulations that you must follow. Once you have completed your screenplay, you may also be required to register it with your union. Before signing any agreements, it is highly recommended that you speak with your union representatives to understand the requirements. Specifically, you should inquire about any language requirements the writers must meet to ensure the contract complies with your union's regulations.

Negotiating with publishers, agents, and producers

Negotiating with publishers, agents, and producers can be complex and may require specialized knowledge. If one person is more experienced and knowledgeable in these negotiations, consider granting that person exclusive rights to negotiate. However, in such a scenario, it's essential to reserve your right to provide final approval for any agreements reached through these negotiations.

Limiting the scope of work

Explicitly limit the agreement to the described work to prevent claims on other work produced. Securing your work with appropriate protections ensures that the other party can’t claim your other creations.

Dividing profits by negotiating a fair arrangement

There isn't a fixed way to divide profits in a business deal. It's up to you and the other party to devise an arrangement that works well for both of you. If one of the parties needs money upfront to sustain themselves while working on the project, you may pay them a more significant portion of the advance or upfront payment. In exchange, the other party may agree to give up a percentage of future royalties. Alternatively, the advance paid can be deducted from the future proceeds. It's essential to document any such decision in detail in your agreement. Taking the time to do so can help prevent potential disagreements in the future.

Allowing ample time for reviewing agreements

It is recommended that each party be given enough time to review the agreement. This is essential to avoid misunderstandings about its terms and obligations. Agreements are less likely to result in claims or disputes when all parties clearly understand the terms. Therefore, it's best to allow ample time for both parties to review the agreement before finalizing it.

Thoroughly reviewing and clarifying expectations

Both parties involved in an agreement should thoroughly review the document to ensure all relevant points are included. It's essential to explicitly state all expectations and terms in the agreement to avoid misunderstandings. By doing so, everyone involved can clearly understand what is expected of them and work together towards a common goal with positivity and clarity.

Signing and submitting agreements involving multiple parties

Ensure you sign at least two copies of the agreement - one for yourself and another for the other parties involved. If you or your collaborators are members of any union, it is advised to make additional copies for your agent or manager and submit them to the union.

Witnessing or notarizing agreements to ensure validity

Having your signature witnessed or notarized ensures legal validity and prevents potential disputes in the future.

Contacting an attorney

If your agreement contains complicated terms or significant risks, it is recommended to obtain legal assistance to draft a document tailored to your specific needs.

Understanding the clauses of the screenplay collaboration agreement

An image of a woman dressed in red, holding a film flap against her face.

The following provisions will guide you through each section of the agreement to help you better understand the process.

Introduction

Here, the document is identified as a screenplay collaboration agreement. It is essential to mention the date on which the agreement becomes effective, usually when it is signed. Identify the parties, i.e., the co-writer(s) or contributor(s) involved in your project. Review the agreement carefully and add any additional parties as necessary.

Recitals

The "whereas" clauses, also known as recitals, are important in providing background information about the parties involved and defining the context of the agreement. It is essential to include a clear statement of your intent to collaborate on a screenplay together, along with the working title of your project. Although the working title doesn’t have to be the final title of the screenplay, it will be necessary for identification purposes in this agreement.

Collaboration on work

This section details why the parties intend to enter the agreement, i.e., to create joint work.

Registration

This section mentions that both parties agree to register for a copyright on their joint work. If either of the parties is a member of any other trade organization, such as the Writers Guild of America, they should carefully review the registration requirements of those entities as well. There may be additional steps required to complete the registration process. Indicate the details of the credit for the work, for example, the order of the names, full name including middle name, or first and last names. It is a good idea to discuss the final arrangement in advance.

Ownership of joint work

This section defines the ownership of the joint work between the parties involved. Typically, ownership is split equally between the parties (50/50). However, if one party contributes significantly more effort or resources to the project, they may request a more significant ownership share. Discussing the ownership division with the other party and mutually agreeing on it is essential. Additionally, this section emphasizes that if either party wants to sell their interest, they must obtain written consent from the other party.

Completion date

This optional provision allows you to set a target date for completing the joint screenplay work. This section serves as a guide for the project and sets a goal for both parties to work towards.

Distributions

This section outlines the process of distributing the funds generated from the sale of the joint work. For example, the initial portion of the money may not be considered profit for either party. It can be used to cover the fees of agents or managers and reimburse any expenses incurred during research or travel. After covering those expenses, the parties may decide to distribute the remaining funds among themselves based on the parties' ownership interests.

Representations and warranties

This section outlines the promises made by both parties in the agreement. Each party agrees to enter into the arrangement only if they can fulfill the conditions mentioned in this section. The parties also agreed that neither has used contributions from any other source and that no other individual or company can claim ownership or other rights to the joint work. It also describes each party's obligation to inform the other about any developments related to the joint work. For example, if a potential buyer approaches one party, they can only pursue the sale with the other party's knowledge and consent.

Agent

This section mentions the name of an agent, manager, or other representative who will promote the sale and distribution of the joint work.

Value

The price for joint work can only be set with unanimous agreement from all parties involved.

Expenses

This section states that a party may only spend money on the project with the other party's consent. Any expenses incurred without the other party's permission are not reimbursable.

Termination

This explains that either party can terminate the agreement if the other party violates any part of this agreement before the completion of the joint work.

Default and remedies

This section outlines the consequences of a party defaulting on its obligations. It lists the actions the other party can take to address the issue; for example, if one party fails to fulfill its responsibilities outlined in the agreement, the other party can enforce all the rights granted.

Indemnification

Both parties involved in the agreement must bear the expenses and protect each other from any claims arising from the agreement. An indemnity is a great way to build trust with the other party by offering a commitment to reimburse them if your promises or assurances do not hold good. It shows that you are sincere and committed to fulfilling your obligations, which can help you establish strong and long-lasting relationships with your business partners. For instance, if you state that your contribution doesn’t violate anyone's copyright, your collaborator, publisher, producer, or agent should be able to depend on those assurances.

Successors and assigns

This section explains the parties' successors and assigns in the agreement. It clarifies that when the parties' rights and duties are transferred to another party, they will also be transferred to their legal heirs. This means that the legal responsibilities and entitlements that the parties agree upon will continue to exist even if they are passed on to their heirs.

Modification

This section states that any modifications to the document are only valid if written notice is served and signed by both parties—if there is mutual written consent.

No implied waiver

This section of the agreement clarifies that if one party allows the other to ignore or break an obligation, the first party doesn’t waive any future rights to require that obligation to be fulfilled. For instance, if a party doesn't receive reimbursement for expenses from another party, it doesn't mean that the first party has waived its right to demand reimbursement in the future; the first party can still demand it later from the second party.

Arbitration

This frequently used optional clause requires the parties involved to settle any conflicts through arbitration instead of taking them to court. However, it's important to note that local limitations or restrictions in your industry must be considered before including these clauses. Reviewing the arbitration laws governing your area and industry is advisable to understand the process better.

Notice

This section mentions the addresses to which all official or legal correspondence should be delivered. Write the mailing address for both parties.

Governing law

This section allows the parties to choose the governing laws of the state to interpret the document.

Counterparts; electronic signatures

This provision specifies that all the individual components of the agreement will be considered as part of the same agreement, irrespective of where the parties sign it or how they transmit their signatures (such as through electronic devices like computers or fax machines). It is particularly advantageous when the parties signing the agreement are often located in different cities and can’t be present in the same physical location. This clause ensures that business can be conducted smoothly and efficiently without compromising the validity of the agreement.

Severability

This protects the terms of the agreement as a whole, even if one part is later invalidated. For example, if a state law is passed prohibiting choice-of-law clauses, it will not undo the entire document. Only the section of the agreement regarding choice of law would be nullified, while the rest remains enforceable.

Entire agreement

This section confirms the parties' agreement that the document they're signing is "the agreement" on the subject.

Headings

The headings at the start of each section are for structuring the document. They shouldn't be considered as the functional components of the screenplay collaboration agreement.

Frequently asked questions

What's a screenplay collaboration agreement?

Collaborating on a screenplay can be easier with a partner. For a project like a screenplay, trading ideas with a partner can be helpful. A screenplay collaboration agreement, also known as a written collaboration agreement or a writing partner agreement, keeps everyone on the same page, even before you start scripting.

What information is needed to complete a collaboration agreement for screenplay writing?

Gather the following information to complete a collaboration agreement:

  • Who are the writing partners: Names and contact information of all the writing partners involved in the project
  • Who is their agent: The name and contact information of their agent
  • Dispute resolution: You must clearly understand how legal disputes will be handled and decide whether they will be solved through litigation or arbitration
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