Right, you had a question. Because you never got paid, you assume your arrangement can't be a work made for hire. That’s not necessarily true. There are two ways to create a work made for hire. The first way is irrelevant since you're not an employee. The second way -- for independent contractors -- occurs if the following three criteria are met:
(1) the film is specially ordered or commissioned (check)
(2) the work falls into one of the enumerated categories (check, it's an audio-visual contribution), and
(3) “if the parties expressly agree in a written document signed by them that the work will be considered a work made for hire” (Hmmm …. Notice there’s no mention of getting paid). As a general rule, courts presume that the above-referenced “written document” is a contract of some sort. In order to be a legally valid contract, there must be consideration.
What's consideration? It can be anything that one party does (or doesn’t do) for the other, and vice versa. Typically it's a payment but it can also be a promise to be paid in the future, even if it is speculative. (We recently signed a speculative arrangement like this when we wrote a book and got no advance). We’re not concluding that your document is a work made for hire arrangement (after all, we haven't seen it), but it could be even if you never received a dime from the other party.
Should you fork over the raw footage. None of this really helps your decision about whether you should fork over the raw footage and files. A lot depends on what is (and what's not in) the agreement. An argument might be made that the parties only intended to share copyright in the completed project. Even if it is implied that the shared-copyright extends to all footage, it's still not clear whether you are required to furnish that footage to the other copyright owner. We start to get into a slippery area as an intangible right is used to claim rights over tangible elements. If it's not spelled out in the agreement, this type of battle sometimes ends up in the courts.
What about damages? As for damages, keep in mind that although your payment for a contract can be speculative, damages in a lawsuit usually cannot. Courts are often hesitant to award financial damages if the person claiming damages cannot say with some certainty how much the film would have earned. There are ways to demonstrate damages in film cases but they are often confusing and when litigated can go on for years-- for example the Kim Basinger/Boxing Helena lawsuit (the judgment for which was later voided) (BTW, Kim, you did the right thing). In other words, the aggrieved party needs to show the court why they’re entitled to the dough, not just ask for it. We wish there was a volunteer lawyers for the arts group in your area to help you get some low cost arts advice. To learn more, here’s a recent podcast we did with the folks who run California Lawyers for the Arts.
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