What are subsidiary rights? Who should share my subsidiary rights revenues and at what rates?

What are subsidiary rights? Who should share my subsidiary rights revenues and at what rates?

Subsidiary rights include the myriad of ways an author can license a work after its initial stage production. Often times, these rights are withheld from the stage producer. They include, among other things, publishing rights, stock & amateur licensing rights, movie and television adaptations and foreign stage productions. Authors retain the copyright in their work but because a producer’s successful production may add value to an author’s copyright, a producer customarily “vests” in a specified share of an author’s subsidiary rights revenues. This grant is limited in time and nature as specified by the contract.

A producer often shares in the author’s subsidiary rights revenues from Equity Showcases and Equity Workshops. In the latter, even the cast may be granted a share. Shares are also often granted in premiering LORT theaters (perhaps more than one) and commercial producers (usually a large share).

Directors, dramaturges, actors and other non-authorial collaborators may also ask for a share of an author’s subsidiary rights revenues as well, but granting such an interest is entirely within the discretion of the author, based on the circumstances of a particular production, and is not at all customary nor recommended.

Further Reading: Understanding Subsidiary Rights; Directors At the Gates; Underlying Rights II: Movie Rights; Life of a Song; Guide to Publishing/Licensing Contracts; The Boards Abroad; The Money Flow; A Statutory Rebuff to the Idea of a “Director’s Copyright”; Subsidiary Rights Round Table: Part I; and Theater Economics.