Co-production agreement for film and TV: what you need to arrange

In a co-production agreement you record, as producers, how you are going to make a film or series together. Think of questions such as who contributes what money, who does what during production, who owns the rights afterwards and how you divide the proceeds. It is the legal foundation under every co-production, and in the film industry it is effectively indispensable.

Without a co-production agreement the financing of a film rarely comes together. Producers starting out in the Netherlands in particular run into this: they do not always meet the requirements financiers impose, such as those of the Netherlands Film Fund. To be able to approach such a financier even so, they often work with an experienced producer who does meet the requirements, by way of a co-production.

An international co-production gives access, through the foreign co-producer, to foreign sources of financing. Just as a co-production can give a foreign producer access to Dutch sources of financing.

Are you at the start of a co-production and would you like to know where you stand? Feel free to get in contact with film law lawyers Merel Teunissen or Roland Wigman for a conversation without obligation.

What does a co-production agreement contain?

The core elements are the description of the project, meaning the title, format, length and genre, and the division of responsibilities. In concrete terms you record:

• Who arranges (or tries to arrange) which financing?
• Who is responsible for the creative choices?
• Who takes on the actual shoot and the post-production?
• Who manages the costs?
• Who is responsible for delivery to financiers and for the final accounts?

Beyond that, a good co-production agreement contains:

• Arrangements on the timeline and milestones.
• The division of rights in the production.
• The division of income.
• Who is responsible for exploitation.

Who do you enter into a co-production agreement with?

That depends on the production. The producer enters into a co-production agreement with another Dutch producer, with one or more foreign producers, and sometimes also with financiers and investors, broadcasters or streaming platforms. In international co-productions treaties may apply, such as the European Convention on Cinematographic Co-production. Those treaties bring their own conditions with them, and it is sensible to map those out properly in advance.

What should you watch out for in a co-production agreement?

The division of rights is the heart of every co-production agreement. In arranging it you have to take account of the requirements of national funds and of the customs of the film industry. A few questions to ask yourself:

Do you share only in the rights in this particular film work, or also in the rights in the underlying screenplay? Do you share in derivative rights, such as a sequel or prequel? Who handles international exploitation, who collects the income and how is it divided?

In practice we find at Liaise Advocaten that it is precisely these points, rights and the division of income, that lead to the most disputes where they have not been properly recorded in advance.

Chain of title: check the chain of rights

Was the film developed by the other party? Then pay close attention to the chain of title. This means checking whether all the necessary rights were properly acquired: the rights in the screenplay, in any underlying works (such as a book or existing format) and in the music. An incomplete chain of title can cause major problems later, for instance on distribution or when arranging the errors and omissions insurance that virtually every distributor and broadcaster requires.

Want a co-production agreement drawn up or reviewed?

At Liaise Advocaten we guide producers through the entire process, from the first negotiations to the signing of the final agreement. We know the requirements of the Netherlands Film Fund, the customs of the international film industry and the pitfalls producers run into. Are you at the start of a co-production and do you want the agreements properly arranged? Get in contact with us.