No royalties attached??

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coachdebra
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Re: No royalties attached??

Post by coachdebra » Thu Sep 03, 2009 4:41 pm

If you take points as payment, be sure that they are points on the gross not the net of the film. Points are basically percentage points of the film receipts. The scam is if they are on the net receipts of the film you will likely never see a penny even if the film grosses millions and wins an academy award. Because they can always use up all the gross receipts in expenses - and you don't get paid until after expenses if you're getting net points. But if you get gross points (percentage of gross receipts) then you become one of the expenses they use to eliminate all apparent income for tax purposes and to never have to pay the poor suckers who agreed to net points. So always negotiate points (or bumps) on gross receipts, not net.

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