On the Marc: Optioning Properties

By Stefan Marc

Many people are always curious about the process of optioning properties, such as books, scripts, treatments, etc. As a producer and writer, I have both optioned many properties as well as had my properties optioned. The concept is quite simple. The optioning party (i.e. optioner) options a property (i.e. book, article, screenplay, etc.) generally for a nominal fee and for a certain period of time. The optioning period can range from six months to several years, and during that time the optioner effectively controls the rights to the property (i.e. film rights to a book, etc.). That means no one else can turn that book into a movie or television show without facing significant potential legal problems. When optioning properties, producers and studios want to make sure that the property is “clean”—that is, there are no other claims or options outstanding on the property. There have been numerous cases in which a film has been virtually shut down because the producers or studios had not obtained all the rights when developing the property. A perfect example of this is the fact that Warner Brothers had to pay Robert Clark 17.5 million dollars when the Dukes of Hazzard movie was about to open in theatres. Why? Because the Dukes of Hazzard television show, the basis for the movie, was based on the 1974 film Moonrunners, on which Clark was a producer. (see Daily Variety article June, 25, 2005.) This illustrates how important it is to have a “clean” property free from any potential future claims.

During the period when the property is optioned and the producers effectively control the rights, they work to develop the book or screenplay into a full fledged movie, television show or play. The fee paid to option a property can vary greatly depending on whether the book is a NY Times Bestseller or the result of a bidding war by several parties, which can also significantly drive up the price. In most cases, the option price is quite minimal and the writer hopes that the development of the book or treatment will turn into a sale that will pay far greater dividends in the future. The option basically gives control of the property to the optioning party for a set period of time, anywhere from six months to several years, with renewal options. The time period can vary greatly depending if the book is going to be turned into a movie or television show. The option period may be longer if the book or other property is going to be turned into a movie, as the turnaround time from hiring a screenwriter and then shopping (also known as “pitching”) takes longer for a film than a television show, but there are no hard rules. There is also no steadfast rule as to what types or genres that producers may option. The work to be optioned can be anything from a very rough draft, to a completed bestselling book, to an article in a newspaper that may be based on a true story, or a work of fiction.