Leverage

This is not a post about the TNT series -- although I personally like it and am glad to see Tim Hutton acting again. This is about the leverage you have in your negotiation with a network, movie company, music company, or any corporate entity who wants to buy your property.

The specifics of the negotiation can get very detailed -- you will grant rights to your property in a specific number of territories and mediums. For example,if you are the author of a novel, you can sell the film rights to one company, the television rights to another, and the stage adaptation rights to someone else. A friend of mine just licensed the right to create a stage version of his screenplay to a company in Italy. He licensed them only the rights to Italy. If the stage version is a hit he can then license the rights to different producers in different countries. This could result in a much larger income for him than if he licensed worldwide stage rights to one company.

Of course someone needs to negotiate these deals. Now you know what keeps agents and managers busy.

After you get past the specifics of what you're selling, negotiations for intellectual property hinge on leverage: How much does the buyer want what you have; are other companies bidding, and how desperate are you to sell? The less desperate you are, and the more they want your idea, the better your chance of getting top dollar.

If you're negotiating with any established media company it's important to work with an experienced professional who understands the business (see my post from 3/3 about using an entertainment attorney). The top producers, stars and writers get the advice of the best agents and lawyers available. You spent too much time on your idea to allow it to go for less than market value, or entrust it to someone who won't treat it with care.

Of course, if you don't have a track record in the industry and you only have one buyer you may have to take what you can get. The Beatles first record deal gave them the industry minimuum for royalties. They were happy to get it. They did better in subsequent negotiations, after selling millions of hit records.