Entertainment laws in India

What You Need to Know about TV Star Contracts

1. Sometimes the Producer will not make the option exclusive, but will allow the talent to test for other pilots as long as the exercise of the series option by the Producer gets a priority position. Thus, if the Producer's series gets picked-up, the talent is obligated to be in such Producer's series (regardless of what happens with any other pilot for which the actor tested).
2. Additionally, if the deal is for a cable series, the Producer may be willing to discuss shorter option periods. Cable series usually do not function on the same time schedule as network series. Thus, when a cable producer is locking-up a talent's services, it may not be to the exclusion of testing for network pilots. Accordingly, the option periods can be different and, in turn the Producer can negotiate for a lower pilot fee (arguing that Producer is not tying up the talent to the exclusion of network pilot opportunities).
3. If a star's option is picked up, she will seek to carve out voiceover work and television guest appearances on other shows (including MOWs and mini-series). The Producer may be willing to agree to a limited number of carve outs so long as the role is not similar to that of the character the actor is portraying on the Series. It is currently being argued by talent representatives that the standard exclusivity provisions should not prohibit talent from starring in webisode series on the Internet. To the extent that Producers desire this exclusion, Producers are advised to specifically restrict the talent's services in webisodes.

4. Compensation
A. Pilot Compensation: The compensation for the Pilot is usually no more than double the episodic compensation (i.e., Rs 150,000 for the pilot if the episodic rate is Rs 125,000). Usually this double ratio is the attempted starting point by talent in the negotiation; however, they usually are offered less by the Producer.

B. Series Compensation:

1. The test option contract specifies the compensation that the talent will receive if the option is exercised. The talent's representatives will want to specify that the compensation is on a "pay or play" basis (owed to the talent even if the actor's services are not used or required).
2. Depending on the level of the star and the size of the role, the Producer will be asked to guarantee compensation for a minimum number of episodes (the number of episodes guaranteed may be lower in the initial years, and increase over the life of the Series). Typically, a full season means an order of 22 episodes. For the initial year, the Pilot should count as 1 of the guaranteed Series episodes. Next, the Producer may be asked to set the ratio of episodes for which talent is guaranteed compensation, such as ASP (all shows produced), 10/13, or 7/13. The bigger the star/role, the better ratio the talent can obtain. If it is a 22 episode order, 10/13 = 17 episodes, 7/13 = 12 episodes. Obviously, if a star appears in more episodes than the ratio, she will be paid for each additional episode on which she renders services.
3. Additionally, some producers break out a portion of the episodic compensation to cover foreign residuals that would otherwise be owed pursuant to SAG. This amount is treated as prepayment of these residuals.
4. The agreement generally sets forth pre-negotiated increases per year for the episodic compensation, usually a set percentage per year (5% is fairly customary). 
5. Backend compensation is beyond the scope of this summary and will be addressed in the Legal Elite program on television proceeds definitions. Nevertheless, depending on the level of talent, the "star" may be able to obtain a percentage of the Producer's backend in addition to her fixed compensation.

5. Credit
Credit is sometimes as, if not more, important than compensation. The negotiated points are position (first, second, etc.), shared vs. separate card, and location (whether in the main/opening titles or in the end credits). Star talent will also want to be accorded credit in paid ads for the Series. The Producer will want to clarify that all other credit matters are within the Producer's sole discretion.

6. Rights
The agreement must clearly specify that the Producer owns all of the results and proceeds of the talent's performance (on a work-for-hire basis). The Producer must completely own all aspects of the character

7. Name And Likeness
The Producer will want broad rights to use the talent's name, voice, likeness, etc. in connection with the Series, advertising of the Series, advertising of products or services of Producer and/or the Network's commercial sponsors (i.e., commercial tie-ins and point-of-purchase campaigns), exploitation in new media (i.e., internet, cd-rom, etc), merchandising, literary and music publishing, and sound recordings and jackets. The talent will seek to place limitations on the Producer's use of her name and likeness such as attempting to obtain various levels of approvals or consultations on particular categories of usage; and, with respect to permitted usage, talent may seek to obtain "separate pot" participations for merchandise (5% of the Producer's net merchandising receipts is not uncommon, the royalty may be reduced if an item of merchandise depicts 2 or more cast members)

8. Promotional Services
The Producer will want to obligate the star to render promotional services in connection with openings, closing, lead-ins and lead outs for episodes and other promotional and institutional appearances. Promotional activities may be subject to the performer's professional availability. The Producer will seek to obtain the maximum amount of promotional services for no additional compensation (or for scale). Talent lawyers seek to have these services rendered at a multiple of scale

9. Perks
Test travel, accommodations, and per diem; and, Series dressing facilities, hair, make up, wardrobe, etc. are items that are also negotiated in connection with the test option. Rather than getting bogged down with negotiations on these points with a number of actors, the Producer will frequently offer "perks" consistent with the budget and indicate that the cast will be treated on an "MFN" or "most favored nations" basis (in other words, an actor who is the beneficiary of an MFN provision will be treated no less favorably than any other cast member with respect to the applicable "perk"). While an "MFN" provision can facilitate closure of a deal, it can also lend to increased costs across the board in the event the Producer ultimately agrees to "bump up" the perks for another actor.

10. Continuing Series
Even though a test option agreement might cover an actor's services for up to 6 or 7 years, talent on a successful Series will likely seek to renegotiate certain aspects of the deal, and Producers engage in such renegotiation to keep their stars happy and to lock in the talent for further additional seasons of the Series.

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