On Tuesday, January 13th, 2021, the lawyers for the cast and producers from the 2012 film “Silver Linings Playbook” argued in the United States Court of Appeals for the Third Circuit that Spyglass Media Group, LLC, the group that purchased The Weinstein Company’s assets, must honor the Weinstein Company’s pre-bankruptcy compensation obligations.The dispute is over their work-for-hire contracts and whether to consider it an executory contract or not. A work-for-hire contract allows the employer to retain the copyrights to work completed by the employee or independent contractor. An executory contract is when there is “a contract between a debtor and another party under which both sides still have important performance remaining.” If either side would seize performing the contract, then it would be a breach of contract.
This post was originally published on the Cardozo Arts & Entertainment Law Journal website on January 25, 2021. The original post can be accessed via the Archived Link button above.
Sultan, Shaul, "Who Cares if It’s an Executory Contract?" (2021). AELJ Blog. 259.