AGREEMENT BETWEEN FILM PRODUCERS AND DISTRIBUTORS

Open Legal LibraryUpdated 3 Jul 2026

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About this template

What is this template?

This is a hybrid production-finance and distribution agreement. It contains specific technical milestones for funding, such as the completion of five thousand feet of edited shots, and grants the distributor a first charge over the film assets.

When should you use it?

Use this document when a producer requires staged financial assistance to finish a film and is willing to grant the lender exclusive distribution rights. Use a standalone Film Distribution Agreement if the film is already completed and no production financing is required.

What's inside

ClauseNameWhat it does
1Production UndertakingsThe Producers commit to completing the picture for a specific Rupees amount using at least a set number of top-rank artists.
3Security DepositProducers must deposit specific Rupee sums as security, with further deposits required if five thousand feet of edited shots are not finished within a set timeframe.
4Distributor AdvancesThe Distributors agree to advance a specific Rupee sum to cover studio, laboratory, and raw film costs, subject to the completion of three thousand feet of edited shots.
5CommissionThe Distributors receive a specific percentage commission on the net collection of the Producers' share of the film.
6Distribution and ChargeThe Distributors are granted sole distribution rights and a first charge on the picture until the production advance is fully realized.
7Exhibition and ProceedsDistributors must arrange public exhibition within a set period across a minimum of six houses, applying proceeds to commissions and advance liquidation.
8Liability for Unrealised DuesThe Producers' signatories become jointly and severally liable for unpaid advances if sale proceeds do not cover debts within two years.
11Step-in RightsThe Distributor may take over and complete the picture if the Producers fail to comply with any terms or conditions.
13ArbitrationParties must refer unresolved mutual disputes to arbitration under the Arbitration and Conciliation Act, 1996 before resorting to legal proceedings.

Who it's for

  • a film production firm seeking financial advances and studio access for a specific Telugu motion picture project
  • an Indian film distributor providing production capital in exchange for exclusive exhibition rights and a commission
  • a registered partnership firm producing a talkie picture that requires third-party financing to reach the rush print stage

How long it runs and how it's signed

How long
Runs until the work is done
Signed by
Producers, Distributors
Witness
Required
Notarisation
Not required

Law it's drafted under

Refers to
Indian Companies Act (Act 1 of 1956)
Refers to
Arbitration and Conciliation Act, 1996
Jurisdiction
India
Document info
GitLaw document. Document created on Fri Jun 26th, 2026. Last updated on Fri Jul 3rd, 2026.
This document is public
Licensed under CC BY 4.0 (Attribution).
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