Film Investment Contract Template for Indonesia

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Key Requirements PROMPT example:

Film Investment Contract

"I need a Film Investment Contract for a Singapore-based investor investing USD 2 million in our Indonesian horror film project, with specific provisions for creative consultation rights and priority revenue sharing up to 150% return on investment."

Document background
The Film Investment Contract serves as the primary legal framework for structuring investments in film projects within Indonesia's growing entertainment industry. This document is essential when investors seek to provide funding for film productions while securing their financial interests and complying with local regulations. It addresses key aspects such as investment terms, revenue sharing, intellectual property rights, and production requirements under Indonesian law. The contract must comply with Law No. 33 of 2009 on Film and Law No. 25 of 2007 on Investment, while considering specific requirements for foreign investment if applicable. It's particularly relevant for projects requiring substantial capital investment, co-production arrangements, or when multiple investors are involved in financing a film project in Indonesia.
Suggested Sections

1. Parties: Identification of the investor(s), production company, and any other key parties to the agreement

2. Background: Context of the film project, purpose of the investment, and brief overview of the intended production

3. Definitions: Detailed definitions of key terms used throughout the agreement, including film industry-specific terminology

4. Investment Terms: Specific details of the investment amount, payment schedule, and form of investment (equity, debt, or hybrid)

5. Rights and Obligations of Investors: Detailed outline of investor rights including voting rights, information rights, and any creative input rights

6. Rights and Obligations of Production Company: Production company's commitments, responsibilities, and obligations regarding the film production

7. Film Production Requirements: Specific requirements regarding the film's production, timeline, and compliance with Indonesian film regulations

8. Intellectual Property Rights: Ownership and licensing of film rights, copyright, and other intellectual property

9. Revenue Sharing and Distribution: Structure of profit sharing, revenue allocation, and distribution waterfall

10. Reporting and Financial Management: Requirements for financial reporting, accounting standards, and audit rights

11. Representations and Warranties: Standard and specific warranties from all parties regarding their capacity and authority

12. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

13. Governing Law and Dispute Resolution: Specification of Indonesian law as governing law and dispute resolution mechanisms

14. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

Optional Sections

1. Foreign Investment Provisions: Additional provisions required when foreign investors are involved, including compliance with Indonesian foreign investment regulations

2. Multiple Investor Provisions: Specific provisions governing relationships between multiple investors, including voting rights and investor meetings

3. Tax Provisions: Detailed tax treatment and allocation of tax responsibilities, particularly relevant for international co-productions

4. Credit and Recognition Rights: Specific provisions about film credits and recognition of investors in marketing materials

5. Distribution Rights: Specific provisions regarding distribution rights and territories if investors are granted any distribution rights

6. Security Arrangements: Security provisions if the investment is structured as a loan or includes security components

7. Right of First Refusal: Provisions giving investors rights to participate in future film projects or funding rounds

Suggested Schedules

1. Investment Structure and Payment Schedule: Detailed breakdown of investment amounts, payment timelines, and investment structure

2. Film Project Details: Comprehensive description of the film project, including synopsis, budget, and key creative elements

3. Production Schedule: Detailed timeline of pre-production, production, and post-production phases

4. Budget and Cost Breakdown: Detailed production budget and cost allocation structure

5. Revenue Waterfall: Detailed structure of revenue distribution and profit-sharing calculations

6. Key Personnel: List of key creative and production personnel attached to the project

7. Required Permits and Licenses: List of required governmental and regulatory approvals for film production

8. Marketing and Distribution Plan: Overview of intended marketing strategy and distribution approach

9. Insurance Requirements: Details of required insurance coverage for the production

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Media & Entertainment

Film & Television

Investment & Finance

Creative Industries

Arts & Culture

Entertainment Law

Digital Media

Content Production

Investment Management

Cultural Heritage

Relevant Teams

Legal

Finance

Production

Business Development

Compliance

Risk Management

Content Acquisition

Investment

Project Management

Rights Management

Relevant Roles

Chief Financial Officer

Investment Manager

Legal Counsel

Film Producer

Executive Producer

Production Manager

Entertainment Lawyer

Finance Director

Investment Analyst

Business Development Manager

Film Project Manager

Compliance Officer

Rights Manager

Content Acquisition Manager

Production Accountant

Risk Manager

Industries
Law No. 33 of 2009 on Film (UU Perfilman): The primary legislation governing film activities in Indonesia, including production, distribution, exhibition, and development of the film industry. It sets requirements for film production companies and regulates foreign participation.
Law No. 25 of 2007 on Investment (UU Penanaman Modal): Regulates both domestic and foreign investment in Indonesia, including investment procedures, permitted business fields, and investor rights and obligations.
Government Regulation No. 44 of 2016 on Negative Investment List: Specifies business fields that are closed or conditionally open to foreign investment, including restrictions in the film industry.
Law No. 28 of 2014 on Copyright: Protects intellectual property rights related to films, including scripts, music, and the final production. Essential for defining ownership and royalty rights.
Law No. 40 of 2007 on Limited Liability Companies: Governs corporate structure and operations if the investment involves establishing or investing in an Indonesian company.
Law No. 36 of 2008 on Income Tax: Regulates taxation aspects of film investments, including corporate income tax, dividend tax, and potential tax incentives for the creative industry.
Minister of Culture and Tourism Regulation No. PM.31/UM.001/MKP/2010: Specific regulations on film technical requirements, production procedures, and standards in Indonesia.
Law No. 24 of 2009 on National Flag, Language, Emblem and Anthem: Requires contracts involving Indonesian parties to be drafted in the Indonesian language (relevant for contract language requirements).
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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