Question regarding Royalti of films.

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Hello friends. I wanted to know aquestion regarding royalty of films.
Suppose a film has been purchased by any channel lets say HBO. Now according to plain royalti laws will HBO be bound to give a specific portion of his income in royalti every time the film is show to viewers on TV?
or is is it only for a mentioned time only like royalti will be given for next 3 years or 4 years?

please guide me a little about this.

Regards


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According to a TV Production course I took in college, a TV channel usually signs a one-year contract with a film distributor for one film, for a fixed amount. The contract allows the TV channel to show the film only a certain number of times in the year. When the year is up, the channel and the distributor renegotiate.

This is what I was tought. Judging from my experience where certain TV channels show the same films over and over again, I suspect that there are instances where certain TV channels just buy the rights for a film forever. But this would be for less popular, B-movie affairs, not the latest Hollywood superhit.

Hope that helps.
 
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The royalty agreement is different for each project.

Outside of the union and guild agreements, there are no royalty
“laws” - their are agreements with the craft and trade unions and
guilds.

If the film was made under union and guild agreements there are
set rates that must be paid under those agreements. If the film
is non-union the producer (you) will get the best deal you can.

In your example HBO will sign an agreement with the distributor
and that agreement will include the royalty (percentage) pay
out. If you get HBO to agree to pay for 3 or 4 years, they must
honor the contract. If they sign a contract for 1 year, they must
honor the 1 year contract.
 
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