Entertainment Licensing & Branding Blog

Question:

Q: What should I pay to someone who locates funds for my project?

A: I haven’t checked within the last couple of years so first I recommend you check with the Securities Exchange Commission in your jurisdiction and the government on their requirements. There are also conditions on how you can present your investment opportunity and if you require a prospectus or not.

The Finders Fee parameters were as follows the last time I was raising money:  a)  a maximum of 10 % on the first $300,000; b) a maximum of 7.5% on amounts between $300,000 to $1,000,000; and a maximum of 5% on amounts above one million dollars.

Please check with your financial advisers and legal counsel to ensure that the compensation amounts and rules haven’t changed and always have professionals review and edit any business plans or potential investment packages you are thinking about using to raise money for your projects or investing in.

Sandford

Ever wanted to be involved in an entertainment project?

Want to help design and develop a brand?

To learn more contact info@Playdigm.com.

Sophisticated Investors welcome.

Welcome to Today’s Question:

Q:   How long did it take to license Bruce Lee’s name and likeness from the Bruce Lee estate?

A:   The entire process took about six months from the time I contacted Black Belt magazine, who in turn led me to Mrs. Lee’s attorney (at the time) - Adrian Marshall, who let me know that the estate wanted to see a prototype of the board game.  I made three hand-made copies of THE ORIGINAL BRUCE LEE MARTIAL ARTS GAME and sent one off to Mrs. Linda Lee.  I got positive reviews and word that Brandon thought his father would like it.  After I negotiated the licensing details and an agreement worked out, I paid the advance royalty fee and received a one page letter that doubled as a valid contract which allowed me a three year worldwide production and marketing deal.

This was my first venture into the game industry and my life changed.

Sandford Tuey

PS:  I am going to answer one question every Monday as time permits.  So if you have any questions about the entertainment, game or toy industries, branding and licensing - send them in to    info@Playdigm.com.  Make sure you put QUESTION in caps in the Subject Line so it will stand out from the mass email I receive.

To make a successful brand you will have to do more than just write a good story, be it a short story, novel or screenplay.  Every writer hopes and looks forward to their big break.  Well unless you make it happen, it isn’t going to happen.
So what can you do?

First,  you need an amazing story idea - then write it down.  A story so damn good that everyone wants to read it or hear it told.  That means having a great idea and putting it on paper.  I always explain when I give seminars or am a keynote speaker at conferences and events, start with a short story, two or three pages that will express the basics of the idea, but more importantly, turns your unprotectable idea into something you can copyright.

I recommend the three page short story structure so that you can write Act 1 on page one, Act 2 on page two and Act 3 on the final page.  This gives you the skeleton of the story.  I do this as soon as possible, that way if I talk to anyone about this intellectual property, it is no longer just an idea (which are easily borrowed).

Once you have that, you can expand it into novel format or a screenplay or a comic book/graphic novel, video game story format, etc…   This is where diversifying your original story allows you to sell it into several markets.

I write the screenplay next because it only has to be a maximum of 120 pages.  This script, based on your short story, will be able to be shown once you have the first draft completed - rewritten several times with input from friends and professionals in the industry that you can trust (will not borrow your excellent concept).  If many of these readers point out the same problem or area, then this is a sign to correct or improve or delete that section of your story.  That is why readers screen screenplays at studios and production companies.  This is also a great way to ensure you are ready to submit your best work.

Second, you have to brand yourself by making people, especially industry people, notice and want to know more about you.  AND what you have written about.

By drawing on your past, previous  profession, jobs, interests, you may spark some interest with a person who can lift you from obscurity.  If you have no writing past then it is time to start creating one right now.

Your brand? Who are you right now and what have you done in the past.  How can this bio info be leveraged to make you stand out from all the other writers?

Take a class at a reputable University or College/school.  Co-write with a famous writer.  Write greeting cards or comics or video games or any thing - even a website blog like this.  What ever gets you attention and in the search engines.  That way if some one tries to locate you, they search for your name on the internet and there you are.

If you write two screenplays mention the second one in your query letter as it makes you seem more professional than a one-time script writer.  Then there is the  email/mailing campaign that promotes you and your screenplay.  What should be in a query letter will depend on who it is written for.  I will discuss this in a future post.

The key is to get as much exposure as possible.  Network at events, conferences, trade shows, mingle where other writers hang out or join a writer’s group, meet producers, directors and actors.  If you can, put on a party and invite the elite, if they don’t show, hey you tried.  If they do, make sure they enjoy themselves, that way they will remember you.

There are so many ways to make a brand so don’t limit yourself to staying within the box.  My mother always said, “If you don’t ask… you won’t receive.”  She is right, so go ahead and contact the star or element you need to take the next step.  The worse they can do is say ‘No’.   Robert Ludlum said no to me three times and I still did a deal with the man.

Work with what you have, create the image you want and live the part.  Sure the world’s a stage but you are the writer, write the lead character (you) a really juicy part.  Because, in the end, you only get one life to live = so live it the way you want to and you will be surprised how many doors open if you just keep promoting yourself and have others help you too.

This is the reason stars remain stars - they hire Public Relations firms.  Which is another great idea to help brand yourself if you can afford it.  Otherwise, you are your own PR company.

Cheers and good luck branding your story and yourself!

The Olympics are finally over and Vancouver, Canada is almost back to normal - if you can call living in a big city that.  The crowds have thinned down to rush-hour status as the ParaOlympics are now underway.

I should first point out that I voted against bringing the Olympics to British Columbia in the referendum, not because I don’t like the winter games or sports, I watch them every four years on television no matter which country is the host.  What I voted against was the cost and how the billions of tax dollars could have been better spent.

It took British Columbians a hell of a long time to pay off the Expo 86 World Fair debt and I didn’t think we should jump into that kind of deficit as quickly as our present provincial government chose to do so.  Especially after the Liberals have been selling off our Provincial assets (BC Rail, BC Gas) and still trying to sell BC Hydro. So now comes the headache after the party and the realization of how much did it really cost?    I have seen numbers ranging from 2 Billion to as high as 6 Billion dollars.  I wonder what my personal share will be?

I also did not think it fair to BC residents living outside Whistler and the lower mainland.  It is questionable if they benefited at all, definitely not from any of the construction contracts or the short term  tourism, yet they get to share equally in paying off the amount to host such an expensive event.

Then there was the issue of security and the inconvience of rerouting traffic due to closing down major streets like Robson and Georgia or dealing with the checkpoints and security personel within a half mile radius of every event center/facility.  Sure it was only two weeks and It was interesting to see people with back-packs getting searched just to board a skytrain but since I served in the military that didn’t bother me at all, in fact, I am sure it deterred any thoughts of terrorism.

But was it all worth it?

It will depend on how fast this debt can be paid off without hurting the standard of life to the middle class and poor.  If it takes a couple generations to erase, then definitely ‘NO’ and the money could have been better spent on dealing with this recession/depression and its affect on our corner of the world.  Heck, just the interest on the principle debt could have raised a lot of BC citizens up from below the poverty line and helped our seniors live out the rest of their lives under better conditions.  Or imagine how clean every hospital in British Columbia could have been - at the least, Hospital Acquired Infections would have been reduced dramatically.  Oh well, there is so much a couple billion could do for a province…

One thing for sure is that the International Olympic Committee and the Olympic brand are making a profit from every one of their summer and winter events, leaving the hosting nations with the mess to clean up, like a evening party guest that leaves in the wee hours to head to the next celebration.   I wonder how much profit they made?

A “spec” script is short for a “speculative” screenplay, which is a screenplay written without the writer being paid for their time and effort to create such a literary work.

Normally producers pay you to write a screenplay.  You are retained to write a draft of a script that they have come up with.  This commission is usually on a Work-For-Hire basis and the producer(s) own your work and copyright.

Even better is when producers pay you to write a draft or another draft of a screenplay you created under an option agreement. Usually they end up owning the rights to your screenplay and you make a small amount of money and if you negotiated well - even a small piece of the future revenue, if any.

Of course, the only thing better, is to develop your own screenplay with your own money and your collaborators/partners - as this will provide you with the maximum risk but also the maximum reward.  Of course, you will need a lot of money to do this but wouldn’t it be great to control how your vision would lookon film.

You, the writer are considered an element that is attached to a screenplay.  Just like producers, actors or the director are elements.  The more elements attached to your screenplay, the easier it is to be sold to a STUDIO or PRODUCTION COMPANY.

Selling to a studio is considered the best-case scenario as they have the distribution and marketing clout to do it right.  Plus they pay the most for writing screenplays.  Major studios, mini-majors and other production houses require you approach them directly but the likelyhood of an unknown writer getting through the gatekeepers is slim.  Having a producer or agency (especially a known one) is the kind of  middleman to act as a bridge between you and thestudio to ensure that the script is polished enough to be purchased by a studio.

So if you have finished your screenplay and are not successful at getting any producers or agents or managers to read it or become involved with your project, then try and attach an element or two to your project.  This makes it more attractive to other elements and a studio.

Also try and diversify your writing from just your screenplay  to a novel, comic series, graphic novel, video game or any other ancillary merchandise based on your license/brand.  This two will help attract other elements and non-film markets.

This is what I do and continue to do.  So can you!

Sandford Tuey

Recently I was asked which screenwriting books would I want to have with me if I was on a island in the middle of nowhere.  My response is below:

1)  Save The Cat by Blake Snyder.

2) How To Make a Good Script Great by Linda Seger.

3) Screenplay by Syd Field.

I would also hope to have actual screenplays to read as samples and a copy of -

Clause By Clause by Stephen F. Breimer as this is the screenwriters legal guide.

Of course, an internet connection in an air-conditioned hotel near the beach with room service would be great.

Hey, nobody said it was a deserted island… lol

Quite a while ago, the tax department told me that one of my brands did not have any value and would have to be struck from my company balance sheet.  I was surprised and asked the following questions?

1) What about the time I put in on writing the short story and screenplay to establish the concept and develop my idea?  Their reply was that no value would be given for my work.  The months of writing and time I committed to raising the funds to produce items based on the brand were not considered until I asked a few more questions:

2) What about the fifty bucks I spent on registering the copyright? I mean, the registration lasts until 50 years after I am dead and gone. Doesn’t that have any value.  Okay, they would recognize that the brand had a value of $50.

3) What about the Trademark costs for Canada and the United States of America? Okay, after providing proof, they acknowledged the $1,500 for this cost could be retained on the books.  After all, my Trademarks will last quite a few more years and are still valid .

4) How about the replacement costs for the board game?  They said that since it was not in production at this time, they would not give me any value for the camera ready artwork, plastic metal molds to produce the tokens and other materials associated with the board game design.  After a few discussions, it was made clear that some of the replacement value would be allowed if I could prove there was still a market for the game. This would only be proven by actual recent sales.  The amount to reproduce the preproduction materials was around $50,000.

5) I convinced them that global internet sales would be satisfactory for their purposes and put a board game up for sale on eBay.  It sold for $150 US - this shocked the government representative, who immediately told me that the sales price must have been an anomaly and I needed to sell at least three to get an average value.  So I sold two more at over $100 US to his dismay.  He thought I might get $12 each but had to agree that there was still a market for the product.

6) Then we realized that all the merchandise would need to be given a value and yet these assets would not be based on a sales price but on a manufacturing price and/or replacement value to make such products.  So I provided the cost to produce the posters, comics, mugs, t-shirts and other items related to my brand and worked out a value.

7) I requested one last time to be given a value for the time and effort I put into the original story and screenplay but got the standard argument that until the script sells there is no way a price could be granted.  I disagreed politely and stated that the value of my screenplay should be no less than the cost of photocopying the 118 pages at five cents a page.  He admitted that would be fair (I didn’t think it was fair but it was a start).

What if I sell the script for the Writers Guild minimum?  What if I sell it for $100 to a low budget producer or a friend?  What if it gets produced into a movie and earns $100,000,000?  What about the video game and graphic novel?

Even though I am willing to write and push all these variations of my brand forward there is a limit to what value the government revenue agency and/or any investors will allow.  So what is your brand truly worth?

Only your imagination knows if your brand is priceless or worthless.

The more you develop and diversify your idea/brand, the more valuable it becomes.  If you can’t sell the screenplay or get the film made, write the novel as this will allow you a second market to try and generate income from your brand.   The more you diversify the project, the better chance you have of success and increasing your brand’s worth.

Some people believe a project’s value is only based on the sales it has, but what if the brand has never been produced in any form yet?  Unproven…

Then the value is what you make others believe it is.  For example: If you get ten investors to put up $10,000 each - then it seems easy to say that the value must be around a hundred grand or more.  How do you convince people that your brand is worth that kind of money?

A worthy project/brand, a ton of confidence and a professional business plan.  I co-wrote a prospectus business plan that helped list my company onto a stock exchange and banked $800,000.  In a future post, I will be going over what should be in a proper business plan that will give you a good chance of raising real money with your brand.

First create a brand that is worth all the work of writing a business plan and going through the process of raising money, etc…  This will help increase the true value of what your brand is worth!!

How much are the rights to the TERMINATOR brand worth?

Derek Anderson and Victor Kubicek acquired the sci-fi franchise in 2007 for approximately  $25 million and produced  ‘Terminator Salvation’.  They are   looking to sell their brand rights as the  companies they own are fighting off bankruptcy and not cyborgs.

Anderson and Kubicek’s Halcyon Holding Group retained FTI Capital Advisors and have requested court approval to “evaluate strategic alternatives.”

The Original Terminator was released in 1984.  Production company Hemdale Film Corporation owned 50%  and creator James Cameron sold his 50% to his producing partner and future wife Gale Anne Hurd for $1.  They have since divorced.

In 1990, Carolco Pictures, owned by producers Mario Kassar and Andrew Vajna, bought Hemdale’s position for $10 million then promptly released ‘Terminator 2: Judgment Day’.  However In 1997, Carolco went bankrupt, but the partners started C2 Pictures which purchased their old firm’s stake for $8 million and paid around $8 million for the remaining 50% from Hurd.

In 2007,  novice producers Anderson and Kubicek purchased the Terminator rights.  Anderson claims that the Terminator rights are now worth more than $60 million - twice what he and his partner bought it for. The box office and DVD sales seem to prove that ‘Terminator: Salvation’  is worth more than expected and should even generate more sequels.  Predicting future revenue for any entertainment project is hard to do but this franchise is on solid ground as long as the next story plot is compelling and draws the fans.

How many more times will such a powerful brand change hands, no one knows.  My guesstimate is that the Terminator Trademark and brand will be a viable entertainment asset for generations to come and will hold its value.

I look forward to the next installment, as do millions of audience members and fans.  Be prepared for the Rise and War Of The Machines

A great way to launch a licensing project is to write a spec script. For those who do not know what a spec script is - it’s a screenplay written on speculation with the hopes of selling it or to use as a sample of your writing to show the film and television buyers and agents.  A spec script  is like a demo tape for musicians or short films for actors and directors.

If you’ve never written a screenplay I recommend you read the following material:

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Screenplay by Syd Field - to learn the proper format and craft.

How to Make a Good Script Great by Linda Segar - to get the story perfect and edit it properly.

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Save the Cat by Blake Snyder - to learn what the buyers like and the formula certain movies are written in. Also Save the Cat Goes to the Movies by Blake Snyder - he breaks down films that we all know and love proving his system is the way to sell your scripts.

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Clause By Clause by Stephen F. Breimer - to understand the complicated contracts every writer needs to know.

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A Pound of Flesh by Art Linson - to learn integral information from a producer’s point of view.

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Fatal Subtraction by Pierce O’Donnell & Dennis McDougal - for insight into how a major studio deals with writers, screenplays and motion pictures.

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The Creative Hollywood Directory and any of it’s competitors - for addresses and contact information on all the players in the industry. The Internet Movie Data Base falls into this category.

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Obviously, the first step is to write a Spec Script and then rewrite it.  As I have stated in previous posts, getting your friends and any professional industry people you happen to know to read your screenplay is crucial to it being ready for submission to agencies, management companies, producers and studios/networks. Make sure it is the best sample of your writing skills before sending it anywhere.

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Sending a spec script to an agent, manager or producer is not as easy as it should be. Most do not accept unsolicited material, so the key is to convince them to request your spec script by first sending a Query Letter (I will be discussing Query Letters in a future post).  This form of contact will either get a positive response and you can forward your screenplay to them or it will garner a negative response or none at all (not unusual).

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If you get the rejection letter, then maybe you chose a contact that does not produce the type of film you wrote or you should contact someone else at that company or you should move onto the next company that produces the genre you are writing.  Either way, it is a numbers game and the more Query Letters you send out, the better chance you have of someone requesting it to read and the more people reading it will help the chance of it being optioned or sold.

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Spec writers should register their stories with the WGA (Writers Guild of America) the WGC (Writers Guild of Canada) and/or copyright their scripts with the Library of Congress or Canadian Intellectual Property Office.

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Hollywood has used this process in choosing new film and television writers for decades. It’s a way to find employment, a sale or at least secure professional representation (agents, managers).

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More importantly, it is a great way to improve your writing skills and

diversify your brand. Good luck with your endeavours.

Sandford Tuey

info@Playdigm.com