Film production contracts — the deals concluded between a producer, a director and the creative team — are not regulated in Georgia by a separate cinema-production statute: no such law exists in the legislation in force. These contracts are governed by the Law on Copyright and Neighbouring Rights — a film is an audiovisual work, and its creation and use fall precisely under that law, not under imported production-law doctrines. This page explains the legal framework of film deals on the basis of articles fifteen, sixteen, forty-three and forty-four of the law.
Co-Authors and the Transfer to the Producer
Under article fifteen, the authors (co-authors) of an audiovisual work are the director, the author of the screenplay, the author of the dialogues, and the author of a musical work created specifically for that film. Concluding a contract on the creation of the work entails the transfer of the co-authors' exclusive right of use to the producer of the audiovisual work, unless the contract provides otherwise. It is this provision that grounds the producer's right to exploit the film.
At the same time the authors retain the right to receive remuneration from users — broadcasting organizations, cinemas and others — for any use of the work, and any contrary agreement between the producer and the authors is void. This right is exercised only through an organization managing property rights on a collective basis. The producer, for its part, may indicate its own name upon any use of the film or demand such indication. Authors of earlier works incorporated into the film, as well as authors of works of independent significance created during production, retain their copyright and may use those works independently, unless the contract provides otherwise.
Works Made in Employment or on Commission
Article sixteen sets a default that matters greatly in film production: property rights in a work created by an employee or a commission recipient in the course of performing an employment duty or a commission belong, respectively, to the employer or the commissioner, unless the contract provides otherwise. This means that the property rights in a screenplay written as part of employment default to the studio, and a commissioned cinematography or costume design — to the commissioner.
The employer is entitled, upon any use of a work made for hire, to indicate its own name or to demand such indication. The amount of the author's remuneration (honourarium) for the use of a work made for hire and the procedure for its payment may be determined by a contract between the author and the employer — which is why the remuneration question should be settled expressly in the contract.
The Mechanics of the Creation Contract
Article forty-three regulates the creation contract: the author undertakes to create a work according to the conditions of the contract and transfer it to the commissioner, while the commissioner undertakes to accept the work and pay the author an honourarium. The author must create the work personally unless the contract provides otherwise; the involvement of another person is allowed only with the commissioner's consent.
The commissioner must examine the work as soon as the term expires and notify the author in writing of approval, rejection or the need for amendments; absent a written notice within the term, the work is deemed approved. The procedure, term and amount of an advance payment are determined by the contract. A clause restricting the author's right to create in the future a work on a particular theme or in a particular field is void, and the subject of the contract cannot be the transfer of rights over a work that may be created in the future. Property rights in a work created on commission belong by default to the commissioner.
Consequences of Breach
Article forty-four governs liability: a party that has not performed or has improperly performed an obligation under a contract of transfer of property rights, creation of a work or a licence must compensate the other party for the damage caused, including lost profits. This means that where an honourarium goes unpaid or rights are used without basis, the author may claim not only direct damage but also the revenue proper performance would have brought.
Frequently Asked Questions
Film-production questions most often concern authorship, the transfer of rights and remuneration.
Who are the authors of a film?
The co-authors are the director, the author of the screenplay, the author of the dialogues and the author of music created specifically for the film; other contributors are covered by other provisions of the law.
To whom is the right of use of the film transferred?
The creation contract transfers the exclusive right of use to the producer unless the contract provides otherwise; the right to remuneration remains with the authors, and its waiver is void.
Who owns a screenplay written in employment?
The property rights default to the employer unless the contract provides otherwise; the amount of remuneration is determined by contract between the author and the employer.
May a director's future creativity be restricted?
No — a clause restricting the author's right to create in the future a work on a particular theme or in a particular field is void.
How We Help on Legal.ge
The Legal.ge team works with production companies, studios and authors: we draft creation and rights-transfer contracts, structure honourariums and advances, and keep the balance between the interests of co-authors and the producer.
If you are planning a film production or facing a dispute over rights, write to us on Legal.ge — we will assess your situation and plan lawful solutions.