Buyout can be translated as “payout”. According to the definition, the term refers to the right to use an artist’s performance for a specific period of time. It must be purchased whenever actors or speakers are used in a film that is to be shown in cinemas or on social media channels for promotional purposes. Regardless of the work performance, the performer provides a special ability that is closely linked to his person. For example, this can be his voice in connection with an expressive presentation, which contributes significantly to the dissemination of an image film. In other words, if something goes viral, it’s the content. As the author of this special achievement, the artist is entitled to a special payment.

Buyout for films, graphics and pictures | wyder

What are usage rights required for?

The right of use is required if, for example, actors read an advertising text as an off-speaker in an image film or depict everyday situations in the image. Like a writer who owns the copyright of his book, the speaker is also the author of his artistic work, which always belongs to him. The speaker receives a one-time fee for his work. The exploitation right is paid in order to be able to use the film for a certain period of time.

What are the advantages and disadvantages of usage rights?

The disadvantages of the exploitation right are obvious: The exploiter cannot acquire the complete rights to the artistic work with a purchase. This means that the service may only be used for a limited time. If the image film is to be used for a longer period of time, this must be negotiated with the actors in new contracts. In this context, it can be advantageous that after the exploitation rights have expired, the content of the film is examined carefully: Should another speaker be chosen? Is the content still up to date? Do you need a different concept for the target group?

Where are the exploitation rights used?

Fee and buyout are usually weighted equally for cinema advertising or image film. In addition, there are agency commissions for professional actors or speakers, i.e. another twenty percent of the fee. If the image film is to run for more than a year, the buyout must be negotiated again and the same amount is then usually paid again for one year of use.

MBO versus buyout in film

A management buyout (MBO) is the takeover of a company where the managing director buys the company. An MBO usually takes place in smaller companies that are to be sold. This results in a better basis for negotiation than if several external companies were involved.

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