What is a Chain of Title in the Film Industry?

Summary

• Chain of title establishes the legal ownership history of an asset, and gaps or defects can expose businesses to disputes or invalid transactions.
• Conducting thorough due diligence on chain of title is essential before acquiring property, intellectual property, or other assets.
• Unresolved title issues can affect a business’s ability to sell, licence, or use an asset effectively.
• This article is a plain-English guide to chain of title for Australian business owners, covering key legal considerations under Australian law.
• It has been prepared by LegalVision, a commercial law firm that specialises in advising clients on property and commercial transactions.

Tips for Businesses

Before acquiring any asset, obtain a full title history and identify any gaps, encumbrances, or competing claims. Keep records of all transfers, assignments, and licences in your chain of title. For intellectual property, ensure assignments are in writing and properly executed. Address title defects early to avoid complications in future transactions.

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On this page

• Copyright and the Film Industry
• Why is a Chain of Title Important?
• What Documents Are Involved When Establishing a Chain of Title? 
• Additional Considerations For Filmmakers
• Key Takeaways
• Frequently Asked Questions

In the film industry, a ‘chain of title’ is the sequence of documents that proves who owns the rights to a film. Without it, producers cannot legally sell, distribute, or licence their work. This article will outline what a chain of title is and the type of documents you will need to prove a chain of title in the context of a film production.

Copyright and the Film Industry

In Australia, copyright provides creators with the exclusive rights to do certain acts with a creative work. A creative work can be:

• literary;
• dramatic; 
• musical; 
• artistic; or
• cinematographic. 

Copyright can exist in each creative contribution to the movie, meaning that there are often overlapping owners or authors of copyright to which exclusive rights exist. For example, copyright might exist in:

• the soundtracks or music playing in the background of the film;
• the storyline of the film if it is based on a book or a well-known individual; and
• famous paintings or branded products featured in the film.

Evidently, multiple individuals and works come into play when making a movie. For the producer or the production company to have legal rights to sell the film, they must establish that they have rights to use all the works. 

If they do not establish this right, they may be infringing someone’s automatic rights to copyright and may face a claim brought against them. It is then essential to establish a chain of title before the sale and distribution of the film.

Why is a Chain of Title Important?

The chain of title is essential for several reasons:

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What Documents Are Involved When Establishing a Chain of Title? 

Many documents are necessary to determine a clear chain of title. We explain each of these documents below. 

“Clearing Copyright” by an Artwork Reproduction Licence

Say you plan on using artwork in your film. In this instance, you will need to gain clearance or permission from the owner before doing so. To obtain permission, you will need a licensing arrangement.

Location Release Form

If you plan on shooting on private property, you may need a location release form. This will prevent issues such as trespass and other indemnity issues. You may also require a location release form while filming on public property.

Music Commission or Music Licence for Film

Additionally, if you plan on having a musician, band, or composer produce something specifically for your film or use an existing song, it will be essential to have appropriate agreements in place.

Option and Purchase Agreement or Licence for Existing Work

Moreover, if you plan on acquiring exclusive or non-exclusive rights by basing the film on an existing book, play or otherwise, you must have appropriate agreements in place. 

Crew and Cast Agreement

If you intend to hire staff on a contractor basis, you will want to ensure that copyright vests in the relevant film production company.

Additional Considerations For Filmmakers

Beyond these core considerations, filmmakers should also consider the following:

Key Takeaways

In summary, there are a number of legal issues filmmakers should consider. A chain of title is a series of documents that protect a producer or filmmaker from competing rights. Therefore, without an appropriate chain of title, film producers subject themselves to an increased risk of liability for infringing other people’s rights. 

LegalVision provides ongoing legal support for businesses through our fixed-fee legal membership. Our experienced intellectual property lawyers help businesses manage contracts, employment law, disputes, intellectual property, and more, with unlimited access to specialist lawyers for a fixed monthly fee. To learn more about LegalVision’s legal membership, call 1300 544 755 or visit our membership page.

Frequently Asked Questions