Cinema Canada (May-Jun 1975)

) Any major production investor will require a ‘completion guarantee’. It’s like an insurance company that takes a piece of the action. And it’s essential. In one form, if you do as your production schedule and budget tells you to do, the guaranteeing company will step in and give you the money to finish if something happens beyond your control. On the other hand, if you don’t do as you're supposed to (and they have the expertise to know how long a given number of lines takes to film), they can step in and take over the production. For this they get a fee, a portion of the profits, and sometimes first recoupment: that is, first to receive income doled out from the box office after expenses. Another form is to have your investors, in the original agreement, advance funds to cover overruns at a given time. Or get a lab to do it: they process your film in return for a portion. The CBC, CFDC, or any major American distributor requires some form of completion guarantee. What happens if you can raise only 95% of what you need? Do you alter the script, at a possible box office loss because-of destroying important effects? How do you cut your budget, or should you persevere until you've got the total needed? Of course, the latter is best to do, but there are other ways. Defer fees to producers or talent. Try to interest a lab in investing in the film in exchange for lab services. You have to hire the talent: actors, director, writer, technicians. Remember the unions |ATSE and NABET and ACTRA or Actors’ Equity. You will have to negotiate fees, plus per diems, transportation to locations, credits, and a method of resolving any disputes. If you're using animals, don’t worry: they're considered as props and are rented, but people who are in backgrounds or crowd scenes must be considered. If they are undistinguishable in the film, they don’t affect legal considerations, but if you focus on or draw attention to anyone, get a ‘release’ which entitles you to use them in the film as you see fit; otherwise some unruly passerby can claim damages for insult in the way he’s been shown. An insurance policy called an ‘Errors and Omissions Policy’ is needed to protect you from such oversights, and you'll need the necessary releases to get it. One aspect of the film is usually. not contemplated until post-production: the music used. It should really be considered now, because you'll need a license from the copyright owner to use his work (the writer and performer if you're lifting a previous recording, or just writer if the music is composed specifically for your film). You'll need rights both to synchronise the music on your film and to perform it. For more information, the Composers, Authors and Publishers’ Association of Canada has a free book, ‘You and The Music Business’ by John Mills, Q.C., obtainable by writing to CAPAC. That body, and Broadcast Music Incorporated, collects royalties for their members. Where to Get the Money While it’s true that money is not exactly pouring forth endlessly into film projects at this time, there are producers with access to funds, and there are more sources for obtaining film financing than most people believe exist. And new ones open up every day, as more people want glamour, financial risk, or even philanthropy. First, let’s consider the private sector and then government institutions. Private Sources Start with your family and friends. Whether for full or partial financing of a short film, or providing some daily bread while you prepare your script and presentation, they can offer financial and moral support at a crucial time. Then move to potential users, especially distributors. The CFDC expects distributors to invest in major projects. This creates an incentive for distributors to sell the finished product. Distributor investment could mean that they will buy your picture when it’s finished, but more often they'll S