Going from a bestseller to a Hollywood blockbuster has been a regular trend in recent film history.
But adapting books into films can raise issues when it comes to making sure the filmmaker has all the necessary rights it needs and disputes can arise over the terms of any licensing arrangement.
A case in the US at present revolves around New Line Cinema, the company behind the Lord of the Rings production, which is facing a lawsuit over an alleged failure to pay out a percentage of profits to the estate of J.R.R. Tolkien.
The Tolkien Trust, set up by the author’s heirs, is seeking compensatory damage and if successful, would have the power to block plans to make any more films from Tolkien’s books, including the long-awaited prequel, The Hobbit.
According to Turul Brown, Scheme Director of Lloyd’s broker IMS Film Insurance, this issue is just one of the many perils facing film companies.
He said: “If book authors are successful in suing film makers, it could change the filming schedule already outlined by the producers. This could ultimately mean an interruption in pre-production and could lead to postponement or cancellation of locations and studios, re-booking crew and actors and depending on what agreements they had in place, possible claims being made due to the budget already being spent on these areas to secure these key personnel and sites.
“The cover available that would typically protect against this is Film Producer’s Indemnity.” Brown continued: “The second problem for film companies is that if an early settlement cannot be reached between the parties, the legal wrangling could be extended.
But legal claims are not the only risks filmmakers face when it comes to the potential for delay. Health and safety as well as many other factors have to be taken into consideration.
Brown recalls one time when the makers of British film Brick Lane had to cancel their location shoot in the east London area.
“Producers were understood to have been concerned for the safety of cast and crew after heavy protests from activists against the filming. Whether or not a claim has been made by the producers is unknown,” he added.
