Tuesday, October 9, 2012

RELEASE LETTER. Risk factor.

RELEASE LETTER.  Risk factor.

Here is the sample of release I was asked to sign. Legal issues are always complicated. The more I read more water I drank!

When I received their release letter, first I checked their web site. They make T.V and films. It was a small production house, made only two family movies. They cannot afford to make movie version of ‘Eternal Love'. Maybe they will use my story concept for making T.V. serial..... Maybe they will tie-up with major movie production house and make 'Eternal Love' movie....

I would like to clarify few of my doubts with you.
1) Is it right to sign release letter before finalizing agreement?
2) Is it a common practice asking for release letter before the production house decided to make movie based on your fiction?
3) What are the future complications by signing release letter?
I value your advice and suggestions
Sample copy.
TO: Company name XXXX
The following shall constitute a release (the “Release”) by ______________________
(“Submittor”) to XXXX, its subsidiary, affiliate, parent or other company and/or other
company under common ownership or control (“Related Entities”), their directors,
officers, agents, employees, consultants, lessees, licensees, successors and assigns, with
regard to the submission of literary material entitled: ____________________________
(the “Material”) for review by XXXX. Submittor understands and agrees that the
execution of this Release is a pre-requisite to XXXXX ’s review of any material submitted
by Submittor.

In consideration of XXXX’s review of the Material, Submittor hereby agrees as follows:
1. Submittor understands and agrees that XXXX does not undertake to consider the
 Material in confidence. Submittor acknowledges that XXXX must disclose the Material
to various employees of XXXX, and possibly even to those outside of XXXX’s employ,
to determine the Material’s value to XXXX. It is understood that no confidential
relationship is created by reason of XXXX’s consideration of Material or by reason of
discussions at any time between XXXX and Submittor with respect thereto.

2. The Material has not been previously disclosed to XXXX, and XXXX has not
made any prior inducements, promises or representations to Submittor regarding the
Material. Any submission to XXXX is made with the understanding that XXXX shall
give the Material such consideration as it merits in XXXX’s sole and final judgment, and
XXXX is under no obligation to Submittor whatsoever if it does not evaluate the Material
or does not desire to use the Material. XXXX is under no obligation to release to
Submittor either XXXX’s actions in connection with the Material or any information
regarding its activities in the field towards which the Material pertains.

3. Consideration of the Material is not an admission by XXXX of the novelty,
propriety or originality of the Material. XXXX shall not be obliged to further consider
Submittor’s Material or to negotiate with or enter into any agreement with Submittor.

4.XXXX shall be entitled to all rights of exploitation in any and all media whether
now known or hereafter devised, in any ideas, concepts or materials that are created
independently by XXXX, even if similar or identical to the Material protected by
copyright, without any compensation to Submittor. Submittor hereby waives and
discharges any claims against XXXX pertaining to the Material (including, without any
limitation, claims for breach of employed contract). Submittor shall not be entitled to any
compensation by XXXX for XXXX’s review or use (in any manner) of any portion of the
Material which is not protected material. Nothing stated in this Release or admitted
herefrom should be deemed to constitute an admission of any fact or waiver of any right,
remedy or defence available to XXXX or its related entities and XXXX and its related
entities hereby reserve such rights, remedies and defences to the full extent of law, in
equity and by agreement.

5. Submittor hereby represents and warrants that:
(i) Submittor is the sole originator of the Material, that the Material is solely owned
by Submittor and that no other person, from a corporation, has any right, title or interest
(ii) neither the Material nor XXXX’s review or use thereof, shall violate any personal
or property rights of any third party, including but not limited to, copyright, privacy, droit
moral or other intellectual property rights, nor shall the Material or XXXX’s review
thereof constitute defamation, liable or slander against any third party;
(iii) Submittor has the full right and authorization to submit the Material toXXXX
upon all of the terms and conditions herein stated; and
(iv) no persons other than those signing below have collaborated with Submittor and
created the Material nor do any persons other than those signing below have any rights in
such material inconsistent with Submittor’s agreement hereunder.

6. Submittor acknowledges that in the event of a claim of wrongful appropriation or
other claim of wrongful appropriation or other claim, he shall be limited to an action at
law for damages, and Submittor hereby waives all right to injunctive or equitable relief.

7. Submittor hereby agrees to indemnify, defend and hold harmless XXXX and its
Related Entities from and against any claim, loss, obligation, liability or expense
including reasonable attorney’s fees that may be asserted against or incurred by XXXX or
its Related Entities in connection with the Material submitted hereunder, any uses of such
Material by XXXX or any breach of any representation or warranty made by Submittor.

8. This Release constitutes the entire understanding of Submittor and XXXX. No
other agreement, written or oral, expressed or implied, exists between Submittor and
XXXX with respect to the Material. Any modification or waiver hereunder of
termination must be in writing and signed by both Submittor and XXXX. The invalidity
of any provision herein shall not affect the remaining provisions. The representations,
warranties and indemnities shall survive the termination, execution, completion or
expiration of this Release.

9. Submittor has retained a copy of the Material and agrees that XXXX shall not
have any obligation to return the Material to the Submittor and that XXXX shall be under
no obligation for any loss or damage to such copy.
Dated the _____ day of ___________, 200 __
Name: ____________________ (“Submittor”)