Can “first look deal” be applied to digital development?

So we just learnt a term, first look deal, as stated in Wiki below:

In the film industry, it is an agreement between a writer and an independent producer (production company) or an independent producer and a film studio in which the potential buyer (producer or studio) of a not-yet-written script or in-development movie or television project pays a development fee to the writer or producer for the right to have the first look at the new material before others in the industry get to see it, and at that time make an offer to purchase or distribute or adhere to purchase or distribution terms already stated in the agreement.

This first look deal seems like call options in financial sector. No matter this is relating to films or stocks, this kind of agreement aims at risk mitigation. Not necessarily the risk of losing, but the risk of not earning: the risk that your competitors will get the distribution right of the film before you.

Due to recent boom of internet prosperity, people are searching for next big thing. From time to time, potential clients or partners have requested us for estimating the cost of developing some internet ideas of which the scales are so huge that the clients cannot afford. This may kill great ideas.

Is there any way to start small and think big? The concept of first look deal may provide us an answer. For example, the idea provider and the development service provider may first become partners of which the former provide a kickstart funding for the latter to start some prototypes that are enough for the parties to judge whether they should take the risk of a full scale development. There are some critical issues that should better have a predefined definition before both parties should enter into such cooperation partnership, such as the amount of kickstart fund, other types of non-cash investment from both parties, non-disclosure clauses, the ownership of intellectual property rights, non-competition agreement, preemptive right, force majeure, etc.

We are experienced in handle this kind of service request, and we are open-mind to listen to any kind of cooperation method. For further enquiry, please contact us by [email protected].

  Terence Lam, Managing Director, Creativeworks

About Creativeworks

Since the establishment in 2005, Creativeworks has helped various clients to achieve their marketing objectives by applying integrated methodologies which comprise multi-media, creative design, social media and digital marketing. Our clients include AIA Group, All Nippon Airway, COACH, Ernst & Young, Hong Kong Cyberport, Hong Kong Jockey Club, Hong Kong Polytechnic University, PCCW and University of Hong Kong.

For further enquiry, please contact us by [email protected].