It is a great development with the innovation of the Right to Sell Contract By Ashish, which I had hailed as a new innovation in my previous post. Now the main thrust of this contact is that it binds the seller of the book into a long term relationship and if you bundle it into a two or three-book deal it further solidifies the relationship with the author who holds the IPR. Now let’s look at this contract from the perspective of both sides.
The Buyer: The buyer gets the right to sell the content over an extended period, the contract is an announcement to everyone in the industry that the user is the single window source from the rights of the content, so now no one else in the market can peddle the rights of the book. That is a definite advantage if the contract is for a longer period the buyer feels assured that he has enough time to profit from the IPR property. The IPR can then me sold further like a mutual fund or a bond that sells I the stock market. It is not necessary for the buyer to make a film. Or any content out of the IPR or the Book, he can just sell it to the next production house or studio ate a premium make his cut and not produce the project. In that way, IPR’s can be traded in the market like Bitcoins and it may never make it to the halls, but the buyer is profiting from it nonetheless by selling it forward. So it is like a three-year mutual fund all linked in and the buyer might not see it through as creative product.
The Sellers: The seller, in this case, the author of the book would want a contract that is of shorter duration and a money schedule that gives him his money as fast as possible.The longer it takes for the money to come to him the less liquidity he has and the more time the buyer has to sell. For adherence to a payment schedule, the seller can add a penalty clause if the payment is not made in time. That way he can safeguard his liquidity if he enters a long term deal with the buyer. Bundling two or three books is also a way to take advantage of the buyer’s grace that way you have two or three books that might move faster off the shelf as it is being sold through a single window.
The Lock and The Key: As of every contract in a relationship in life there is a lock and key system there are clauses that bind you into a long term contract but at the same time there are ways of getting out of the contract. You can give notice to the buyer and return any amount with interest accrued. This situation will arise if the buyer has taken a long time to sell the IPR or Someone else approaches you with a better deal. In that case, you can ask the new buyer with a better deal amount to loan you some money which you can pay to your first buyer with interest and free yourself from these obligations.
So you see at the end of the day in true reality contacts are nothing but toilet paper they just give the buyer and seller phycological peace that they have an obligation to each other. But at the sometimes both parties know that they can at will at any time exit this obligation. More then contracts meeting of minds and hearts is important once that happens the IPR can further develop into a digital movie or piece of content that further enhances its value. If the buyer and seller share a common vision and have the required momentum and passion to see things through then the project will make it to the cinema halls, otherwise it.