Film Rights
Types of Film Production
Commissioned production, co-production, or in-house production: The format you choose determines rights, risk, and contracts. We’ll categorize your project—and draft the appropriate contracts.
REHKATSCH Attorneys at Law · Cologne | Berlin | Nationwide
Before the first take is shot, the most important legal issues are settled: Who is considered the film producer, who owns the rights to the finished film—and who bears the risk if the budget is exceeded? The answer almost never depends on creativity, but rather on a single decision—the type of production. Commissioned production or co-production? Genuine or not? An in-house production by the broadcaster? Each option allocates rights, money, and responsibility differently.
In practice, this is often underestimated. A producer signs a “co-production agreement”—and later discovers that the partner merely contributed funds and that the producer actually has no joint rights to the film. Or a service provider shoots “on behalf of” someone else and only realizes during a dispute that they were never the film producer. At REHKATSCH Attorneys at Law, we sort out these issues before they become costly—and draft your contracts so that it’s clear in the end who owns what.
This overview shows you the most important types of film production—commissioned production, co-production, and in-house production, including their subcategories—how they differ legally, and what you should watch out for so that your rights and revenues don’t slip through your fingers.
Why the Type of Production Determines Your Rights
The focus is on the film producer’s right under Section 94 of the German Copyright Act (UrhG). It is a distinct neighboring right and—unlike a contract—arises by operation of law in favor of the person who is responsible for the production from an organizational and economic standpoint and who bears the business risk. Whoever holds this right controls the exploitation of the work: in theaters, on television, via streaming, through licensing, and in merchandising.
This is precisely where the different types of production diverge. Sometimes the right lies with the executive producer, sometimes jointly with several partners, and sometimes originally with the client. Simply investing money in a film does not make you a co-owner of the rights—and someone who “only” directs is not automatically the producer. Correct classification is thus not an academic exercise, but the foundation of every contract, every grant, and every revenue-sharing arrangement. If classified incorrectly, you may give away rights or be held liable for risks that aren’t yours. You can find more about the basics in our section on copyright law.
An Overview of the Four Types of Production
In practice, film productions can be legally classified into several basic categories, which differ primarily in one respect: Who bears the business risk and is therefore considered the film producer?
In a true commissioned production, it is the commissioned producer; in a pseudo-commissioned production, it is the client. In a true co-production, multiple partners share the risk and rights; in a false co-production—mere co-financing—one partner remains a pure financier without any rights of their own. And in an in-house production, the broadcaster produces the film itself and acts as its own producer. The lines between these categories are blurred—and that is precisely why clear classification is so important: Often, a single contractual clause determines which category your project falls into, with significant implications for rights, liability, funding, and taxes. The following sections take a closer look at each form individually.
Contract Manufacturing
A film is said to be produced on a contract basis when the production of the film is transferred, in whole or in part, to another party. It sounds straightforward—but it isn’t. Legally, a distinction is made between two types, which differ in one crucial respect: Who bears the business responsibility? That determines who is ultimately the film producer.
True Contract Manufacturing
In true contract production, the contractor carries out the project as an independent entrepreneur. He directs the filming, acquires the rights of all participants in his own name, and—typically in fixed-price productions—bears the risk of cost overruns himself. This is precisely why the producer acquires the right of a film producer under Section 94 of the German Copyright Act (UrhG), even if the client provides the budget, supplies the material, or initiated the project. Only upon completion does the producer transfer the rights to the client.
This is the standard practice in television, industrial, and advertising films. Broadcasters such as ARD and ZDF, as well as streaming providers, predominantly commission their productions in Germany as true commissioned productions. Legally, this constitutes a contract for work and services (Sections 631 et seq. of the German Civil Code [BGB])—with all that entails: acceptance, rights regarding defects, and consequences for compensation in the event of termination. Behind the scenes, the public broadcasters have agreed on key points for fair contract terms with the Producers’ Alliance, such as revenue sharing and the return of unused rights. Anyone negotiating these terms should know which of these standards apply—and where individual adjustments are needed.
Non-Genuine Contract Manufacturing
From the outside, pseudo-contract production looks similar, but legally it is the opposite. In this case, the contractor works under the direction of the client: although the contractor has on-site management authority, the primary business responsibility and the authority to issue instructions lie with the client. The client bears the full costs and the economic risk—and is thus the film producer under Section 94 of the German Copyright Act (UrhG). The contractor is merely a subordinate production manager and acquires the rights of the participants from the outset on behalf of the client.
Legally, this is not a contract for work and services, but rather a contract for the management of affairs with elements of an employment contract. A typical example is production service companies that are engaged for a specific project—such as filming abroad—and take on organizational tasks on behalf of the client. For you, this distinction is worth its weight in gold: It determines whether you acquire rights or not, who has the right to terminate the contract, and who is liable for additional costs. Even minor phrasing in the contract can tip the classification one way or the other.
Co-production (Joint Production)
A co-production occurs when two or more partners produce a film together—whether between German companies or as an international co-production. The appeal is obvious: the financial risk is spread across multiple parties, large projects become financially viable in the first place, and internationally, co-production opens up access to multiple funding programs at once. Yet the term “co-production” appears in many contracts that do not actually involve one from a legal standpoint.
Genuine or bogus co-production—an expensive difference
In a true co-production, the partners make key decisions jointly, share the risk, and initially acquire the rights to the film jointly. Under civil law, this usually results in the formation of a civil law partnership (GbR) or a general partnership (OHG). The key factor is that each partner has genuine influence over the production—from the selection of the story and cast to budgeting and financing.
If, on the other hand, a partner’s contribution is limited to financial support, this constitutes only a nominal co-production—often merely co-financing. It does not establish original co-ownership of the rights. Instead, the investor receives licensing, distribution, or equity rights, sometimes in the form of a so-called “negative pickup.” So anyone who believes that their investment automatically makes them a co-rights holder is mistaken—and will be left empty-handed in the event of a dispute. It is precisely this confusion that ranks among the most costly mistakes in the film business.
National and international co-productions
When there are multiple partners, the question of power quickly arises. The partner making the largest financial contribution is the majority co-producer; the others are minority co-producers. Often, one partner acts as the executive producer, assuming management responsibility and the risk of completing the project, while the others retain rights of approval and oversight. The scope of these powers, who is liable to third parties, and how revenues, language versions, and distribution territories are divided must be clearly specified in the co-production agreement.
Internationally, there is an additional layer to consider: If the film falls under a co-production agreement, it may be considered a national film—or, if equivalent, a European film—in several countries and receive funding accordingly. This is attractive, but it is subject to conditions that must be taken into account as early as the contract signing stage. From a tax perspective, international co-production is a field of its own—key terms include “permanent establishment” and “revenue allocation”—which we take into account from the very beginning when structuring the agreement.
The station's in-house productions
If a broadcaster produces a film itself—ranging from news programs to television movies—it acts as its own film producer. It is entitled to the neighboring right under § 94 of the German Copyright Act (UrhG) and, upon broadcast, additionally to the broadcasting right under § 87 of the UrhG; for productions that do not qualify as works, the right to broadcast moving images under Section 95 of the German Copyright Act (UrhG) applies. The same principles apply to contracts with performers as with any other production—the broadcaster must secure all the rights it needs for the planned exploitation.
This becomes particularly relevant in edge cases: Public broadcasters may exploit their in-house productions only within the scope of their public service mandate and often outsource further commercial activities to subsidiaries. Anyone working with a broadcaster—whether as an author, performer, or service provider—should be aware of the specific context in which they are operating, as the legal implications vary significantly.
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What Contracts You Need
Contracts vary as much as the types of production do. The co-production or joint production agreement governs the collaboration among multiple producers: contributions, distribution of rights and proceeds, management, liability, credit in the opening credits, order of exploitation, and blackout periods. The production-for-hire agreement specifies what the producer will create for the client, which rights are transferred, and who bears which risks. In the case of dependent service providers, the production service or agency agreement comes into play.
In all cases, the contract must reflect the actual arrangement. A contract labeled “co-production” that actually governs pure financing creates conflict rather than clarity. We draft and negotiate co-production, production-for-hire, and licensing agreements with broadcasters and other clients on your behalf—and review existing drafts before you sign. You can find an overview of our work in film law on our overview page; for AI-assisted film shoots, our page on AI film production will help you further.
What Really Matters When It Comes to Classification
The nature of production has implications that extend far beyond copyright law. It determines eligibility for film funding, requirements for credit listings in the opening and closing credits, and the distribution of statutory compensation claims—and it has tangible tax implications, particularly in international contexts. What was intended to be a clear division of responsibilities can, for tax purposes, turn out to be a joint venture with permanent establishments both domestically and abroad.
That’s why it’s worth consulting a specialized attorney early on—ideally before the contract is finalized. Once a structure is chosen incorrectly, correcting it later is both difficult and expensive. In a no-obligation initial consultation, we’ll assess your project and show you which option best aligns with your goals.
How We Can Support You in Your Film Production
Whether you’re developing a treatment, negotiating with a broadcaster, or setting up an international co-production—we support film productions from the initial idea through to distribution. We provide legal guidance for your project, draft and negotiate co-production, production-for-hire, and licensing agreements, and review drafts before you commit.
This includes acquiring and consolidating all necessary rights (rights clearance) as well as addressing issues related to film funding, financing, and distribution. We ensure that the contract aligns with the actual circumstances, that your share of the proceeds is secured, and that you aren’t held liable for risks that should actually be borne by others. At REHKATSCH Attorneys at Law, we specialize in copyright and media law and also consider the intersections with trademark, compensation, and tax issues. The best way to get started is with a no-obligation initial consultation.
Frequently Asked Questions About Types of Film Production
In genuine commissioned production, the producer works as an independent contractor, bears the risk, and is the film producer under § 94 of the German Copyright Act (UrhG). In non-genuine commissioned production, the client bears the costs and risk and is the film producer; the contractor is merely a dependent production manager. This distinction determines who holds the rights and who is liable.
A film producer, as defined in Section 94 of the German Copyright Act (UrhG), is the person who is responsible for the production from an organizational and financial standpoint and bears the business risk—not necessarily the person who provides the funding or came up with the idea. Depending on the type of production, this may be the executive producer, several co-producers acting jointly, or the client.
A true co-production exists when multiple partners make decisions together, share the risk, and jointly acquire the rights. If a partner merely contributes money without having any real influence over the production, it is considered a pseudo-co-production or co-financing—without original co-ownership of the film rights.
While the written form is not mandatory in every case, it is always strongly recommended. Only a clear contract unambiguously governs the transfer of rights, risk, compensation, acceptance, and exploitation—and prevents disputes later on regarding whether the work constitutes a genuine or non-genuine production.
That depends on the type of production: a co-production agreement for joint production, a contract for services for outsourcing to an independent producer, or a production service or agency agreement for dependent service providers. During a non-binding initial consultation, we determine the appropriate structure and draft the contract accordingly.
A co-production agreement specifies who contributes what, how rights and proceeds are distributed, who is responsible for management and bears external liability, how the film is credited in the opening credits, and in what order it may be distributed. In the case of international co-productions, additional requirements stem from co-production agreements and funding conditions.
As soon as there are multiple parties, money, and rights involved: yes. Even the question of whether a production is genuine or inauthentic can have a significant impact on rights and liability. Getting a specialist’s opinion before signing a contract is significantly less expensive than a later dispute over rights, proceeds, or funding.
Let's set up your production the right way
Before you sign a production or co-production agreement, it should be clear who the film producer is, who holds the rights, and who bears the risk. That’s exactly what we’ll clarify with you—in person and tailored to your project.
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