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Distribution Contract And The Rights Of A Power Of Attorney

January 21st, 2012

Have you ever seen a foreign film or listened to a track in another language? Whatever constitutes foreign and local movies for you, chances are that you have watched and listened to a movie, TV program, and music created in another country. This is possible because the producers of those works signed a distribution agreement with studios in your native country. This is what happens when an owner wants to sell his products to another market, which in this case is a movie or music.

Selling an item to another market requires signing a distribution agreement with a supplier. Even though you can do it on your own, there would be instances and places where you wouldn’t have the power to do so. If you have made an indie film and you want to release it in another country in addition to releasing it in your hometown independently, you would need the help of a studio based in that place to assist you. And since you would sign a contract with the studio, you may have to grant a power of attorney rights to the distributor.

It is not mandatory that you bestow a power of attorney, or POA, to the movie studio that will distribute your movie. However, it would help your cause enormously as they would have the convenience of enforcing your rights even if you aren’t in the same country. A POA authorizes them to act on your behalf. The agent or the receiver of the POA, who is the distributor in this example, doesn’t have to be an attorney per se. The right simply means they can do whatever is in your best interest without getting your consent first.

Just imagine if somebody else profits from your movie by making copies and selling them at a lesser price. You and your distributor would lose earnings. And in the first place, you wouldn’t be aware that you are missing out just because you are not there. A POA can help the distributor sue the third party for unauthorized release and distribution of your movie, which would prevent them from taking advantage of your work.

The same is true for any other items, not just for movies, TV programs, or music. The same rights would still be valid on any item that you want to sell, like furniture or food, though there would be slight variations. You can also modify the POA to what you deem just right. It could include only those you believe necessary such as suing a third party for releasing and selling your product without your consent.

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