Saturday, December 31, 2011

Benefits Of Giving Distributors A Power Of Attorney

By Alwin Gold


Ever seen a foreign film in your native country? Or have you ever listened to a track in another language? Odds are that you have, wherever in the world you may be or what constitutes foreign and local films for you. You get to see films and television shows that are not created in your country because their producers have entered into a distribution agreement with studios in your country. That is what happens when an owner wants to sell his products in another market.

Selling an item to another market requires entering into a distribution agreement with a supplier. Although you can do it by yourself, there would be times and places where you wouldn't have the power to do so. If you have made an independent movie and you want to release it in another country besides releasing it in your homeland independently, you would need the aid of a studio located in that place to assist you. And since you would enter into a contract with the studio, you may have to grant a power of attorney rights to the distributor.

A power of attorney (POA) authorizes the distributor to act on your behalf. The agent, or the receiver of the POA, doesn't mean an attorney per se. It just means that they can do whatever is in your best interest without having to check with you first. It's not required that you bestow that right to the studio, but it would help you enormously. Granting a POA to the foreign film studio would give them the confidence to protect your rights. And because you aren't in the same country, they have the convenience of imposing your rights.

What if someone made copies of your film and sold them to movie theaters? You and your film studio in that place would miss out in income since you wouldn't know that you are being deceived by someone else simply because you are not there. But if the distributor has POA to sue a third party for unauthorized release and distribution of your film, they would help settle the problem as soon as possible.

A product doesn't necessarily have to be a movie, TV program, or music. It could be a physical product that you made, like a toy or a food. You can modify a POA to only include rights that you believe essential, such as the right to sue a third party for unlicensed use, distribution, and release of your goods.




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