Film glossary

Option Agreement

An option agreement gives a producer the exclusive right to develop existing material for a set period before deciding whether to buy the rights outright.

Optioning material such as a book, article, life story, play, or earlier script is usually the first link in a film chain of title. The option secures exclusivity for a window, often one to two years, sometimes with a renewal, for a fraction of the full purchase price.

If the producer moves forward, a purchase agreement transfers the rights outright. If the option lapses, the rights return to the owner. Clear option and purchase paperwork prevents a common break in the chain of title.

Go deeper

Chain of Title guideChain of title is the unbroken record of legal ownership and rights for a film, from the original idea or underlying material through to the finished picture. It is the documented proof that a producer has the right to make and exploit the film. Buyers, financiers, and insurers require a clean chain of title before they will close.

Related terms

Keep reading the glossary

Chain of TitleChain of title is the documented, unbroken record of who owns the rights to a film and everything in it, from the underlying material through the finished picture.QuitclaimA quitclaim is a document in which someone gives up any claim they might have to a film underlying material or rights.Errors and Omissions InsuranceErrors and omissions insurance, or E and O, protects a film against claims of copyright infringement, defamation, and similar issues.First PositionFirst position describes the party with the highest priority claim, whether a lender that recoups first or a rights holder whose interest ranks ahead of others.

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