What is a distribution agreement, and what are its legal requirements?

A distribution agreement is a legally binding contract between a distributor and a producer. It governs the distribution of a film, television, or music product for the purpose of making money. In a distribution agreement, the producer agrees to transfer the copyright of the product to the distributor, who in turn, promises to make sure the product is distributed to retailers and/or broadcast outlets. Generally speaking, a distribution agreement legally requires the producer to transfer copyright and grant the distributor permission to use the product in any distribution-related activities, such as marketing, advertising, and promoting. The producer typically retains the right to approve all marketing materials and is responsible for the copyright of the original material. The distributor is legally obligated to perform a number of tasks, depending on the terms of the agreement. Generally speaking, they must pay the agreed-upon fee to the producer, market the product efficiently and effectively, and distribute the product. Distribution agreements must also address royalties, which outline how profits are to be split between the producer and distributor. In California, distribution agreements must adhere to the “California Commercial Exploitation Act” or “CCEA.” This act stipulates that distributors provide producers with regular statements of account and must return unsold or returned copies of the product within a reasonable time frame. Producers can also sue a distributor for breach of contract, if the distributor fails to meet any of the requirements of the distribution agreement.

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What is a distribution agreement, and what are its legal requirements?

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