PRODUCERS BEWARE! Sales Agencies in the Film and Television Industry

The practice in the Film and Television Industries whereby sales agents contract with distributors and licensees as principals is not one with which producers and rights owners should collude. This is especially so where the profit participants in a production do not appoint an independent collection agents pursuant to the terms of a properly drafted and negotiated Collection Account Management Agreement (“CAMA”).

Experience suggests that as good as a sales agent may be at sales, not all of them have an equivalent level of expertise in either contract law or how to act in a fiduciary capacity.