This director loves making friends.

Chapter 99 Copyright Ownership in North America

Harvey Weinstein traveled from Venice to Milan, and then boarded a plane to the United States, his face so gloomy it was almost dripping with water.

He swore he would never set foot on the turf of Venice again in his life, or he would be a son of a bitch!

Harvey Weinstein's heart was bleeding.

He paid $100,000 in "compensation" to terminate his contract with Zhiyuan Pictures.

In addition, there's the $3 referral fee paid to Marco Müller, which is definitely not going to be recovered. In total, he's lost $13!

That's $13, and it still can't be recorded in Miramax's accounts.

Fortunately, he also secured two other low-budget films during the Venice Film Festival. Although each film cost less than $30 on average, he figured he might be able to squeeze out $13 from them.

No, how can $13 possibly soothe a bleeding heart?

Harvey Weinstein decided to try to increase the cost of each film to $40.

It's not that we can't add more, but these two films are neither directed by well-known directors nor have well-known actors; they are merely two low-budget art films.

If the price were increased too much, it would exceed market norms, and Harvey Weinstein dared not raise it any further, as he also had to consider his reputation and status at Miramax and Disney.

Treating people like fools is something you can only do after you've gained status and power.

"Ke Qing, why did you take back the copyright? Harvey is clearly scared. As long as the agreement continues to be implemented, he definitely won't dare to play any more tricks."

Marco Müller didn't quite understand Qin Keqing's approach. Miramax was the highest bidder, and reselling the rights would certainly not fetch as much as selling them before the film festival awards ceremony.

After all, before the awards ceremony, those companies buy the rights and gamble on whether the film will win an award.

Now that the awards ceremony is over, the "gambler's mentality" has dissipated, and prices have returned to a rational level. It's certain that no company will offer a higher price than Miramax.

"Marco, I understand what you mean."

Qin Keqing took a sip of the Longjing tea brought by Marco Müller. He hadn't expected to be able to drink Longjing tea in Italy, especially since it was a foreigner who was treating him to it.

Well, although Marco Müller looks like a foreigner, he speaks Mandarin with a Northeastern accent and has many habits similar to those of Chinese people. He is a foreigner who is deeply influenced by Chinese culture.

This is understandable.

Marco Müller went to China to study in 1974. At that time, China was a place of intellectual exchange and collision, very unrestrained. Anyone who came would be deeply influenced and their thoughts would be deeply imprinted on their bones.

"I originally thought of selling the North American rights directly, which would save time and effort, and I'm a bit lazy and careless. But after Harvey's commotion, I changed my mind."

The North American market is the world's largest. I wonder, without a superstar like Jackie Chan, what kind of film could "The Man from Nowhere" be made?

I want to see if this new style of filmmaking has a market there.

"You want a guaranteed minimum plus a percentage of profits model?"

Marco Müller pondered for a moment and said, "Hasn't your 'La Dolce Vita' already proven that Hong Kong action movies don't seem to work well there, so the minimum guarantee can't be too high."

Despite being a Cannes award-winning film, "A Bittersweet Life" barely grossed $268 million at the North American box office. After deducting print and distribution costs, there wasn't much left.

This is also why "The Man from Nowhere" couldn't sell for a higher copyright fee.

Even if "A Bittersweet Life" hadn't been a huge hit in North America, and had only grossed over $600 million, Qin Keqing's second film, "The Man from Nowhere," would definitely have earned more than its current value.

"No, Marco, it's not that they're not used to the local culture. It's that Diamond Pictures' distribution capabilities are too poor. Their distribution network in Europe is pretty good, but it's terrible in North America. That's why I sold the European and North American rights separately."

Qin Keqing took a sip of tea and said with a smile, "So, I still need to trouble you to help me find a company with a complete distribution network in North America, preferably one of the six major Hollywood studios or their subsidiaries."

Marco Müller thought for a long time, then suddenly slapped his thigh: "I've thought of a suitable distributor, you may not have heard of it, it's called Sony Classics."

Qin Keqing's heart skipped a beat when he heard the name.

This company is very fond of investing in and distributing Chinese-language films, and many award-winning films in China are produced by this company.

"Sony Classics is a new label that was officially established in January last year. Backed by Sony Pictures Entertainment, it is Sony's core department dedicated to the distribution of independent films, art films and documentaries."

After Sony acquired Columbia Pictures for $34 billion in 1989, it officially established Sony Pictures Entertainment, holding a host of established film companies such as Columbia and Samsung, while the newly established Sony Classics focused on film festivals.

This company had talked to me before, but their offer wasn't high enough, so I didn't prioritize them. Now it seems that Sony Classics, backed by a major manufacturer, is more reliable than a piece of junk like Miramax, which is Harvey.

"Alright, Marco, go back to Sony Classics and have a good talk with them. Give them priority for a guaranteed release."

Qin Keqing made her decision. Sony Classics had a good reputation, and throughout the 1990s, almost all the Chinese-language films that competed for awards in Hollywood were handled by Sony Classics.

I haven't heard any rumors about them scamming people.

Furthermore, with Sony Classics newly established, it was the perfect time to build its reputation, and Qin Keqing was no longer an unknown figure. Sony Classics certainly knew that he was a "protégé" of Cannes.

Therefore, unless Sony Classics is as short-sighted as Harvey, they probably wouldn't have tricked Qin Keqing.

As Marco Müller stood up, Qin Keqing jokingly said, "Marco, don't forget about the referral fee. Try to act like we're not that close, you understand?"

What do I understand?

Marco Müller pondered this question for a long time.

It's not that he's not smart enough; the fact that he became a senior film selector at the Venice Film Festival and has a lot of support proves that he is indeed a smart person.

However, Qin Keqing's counter-trap of Xavi somewhat frightened Marco Müller, so he had to carefully consider what Qin Keqing said and seriously consider whether it had any hidden meaning.

Then, after meeting with the people at Sony Classics, Marco Müller finally understood Qin Keqing's meaning.

Qin Keqing meant what he said on the surface: to act as a "neutral" person, so that he could better understand Sony Classics' ideas.

Sony Classics was even more generous than Harvey, giving Marco Müller a $5 "referral fee" and asking him to find out Qin Keqing's bottom line for "Uncle".

People at Sony Classics had already seen the screenings of "The Man from Nowhere" and collected almost all the reviews and reports about the film; they actually praised the quality of the film highly.

Furthermore, the film was categorized as a "commercial art film with greater market potential," suggesting that while it has box office potential, it is unlikely to win an Oscar.

This is the Venice Film Festival. Sony Classics wanted an art film that could win awards, to compete for the Oscars, and to boost Sony Classics' reputation. So, initially, they didn't discuss the price.

They thought they would miss the movie, but they didn't expect to have another chance.

At this point, Marko Müller's "neutral" position came into play.

Through the back-and-forth leaks of information by Marco Müller, a "neutral" intermediary, both sides quickly figured out each other's bottom lines. Well, mainly Qin Keqing figured out Sony Classics' bottom line, and they quickly finalized their cooperation intentions.

Sony Classics secured the North American distribution rights to "The Man from Nowhere" with a minimum guaranteed price of $60. If the film grosses over $400 million at the North American box office, the excess will be split between the two parties according to industry practice.

In North America, traditional Hollywood blockbusters typically receive a higher percentage of revenue, but for non-English or foreign films, the final percentage that the studio receives is usually between 20% and 40%.

The specific percentage depends on the level of risk borne by the distributor. If the distributor bears high minimum guarantee and marketing expenses, the production company's share will be reduced.

If the minimum guaranteed price offered by the distributor is not high, and the marketing expenses are also not high, the production company will get a larger share.

"The Man from Nowhere" was selected for the main competition at the Venice Film Festival. Although it did not win an award in the main competition, it won many off-site awards, including the prestigious FIPRESCI Prize.

It's fair to say that it's very popular.

In addition, Qin Keqing is somewhat famous, which can save Sony a lot of marketing expenses. The guaranteed fee of $60 is not high. Therefore, the two parties finally agreed that Zhiyuan Pictures can get a 28% share.

Furthermore, if The Man's final box office exceeds $800 million, Sony Classics has agreed to submit it for relevant North American awards.

Qin Keqing was fairly satisfied with the result.

The $60 guarantee fee may not seem high, but as long as "The Man from Nowhere" grosses over $400 million, even a small overage could result in a larger share of the profits.

For example, if the North American box office is $500 million, you can get $28, which adds up to about $90.

Add to that the $10 in "compensation" for Harvey's breach of contract, and that makes a total of $100 million, doesn't it?

Of course, the prerequisite is that "The Man from Nowhere" has a high enough box office.

Qin Keqing was actually unsure about the North American box office, after all, "A Bittersweet Life" only grossed $268 million in North America, so who knew how "The Man from Nowhere" would fare?

It seems that apart from a few Jackie Chan films, very few Hong Kong action movies have been able to achieve high box office returns in North America. Many only gross a few hundred thousand US dollars, leaving the production company with virtually no profit.

Therefore, Hong Kong action films have become completely disillusioned with the North American market. Some Hong Kong filmmakers attribute this to cultural barriers, believing it to be similar to how Hollywood films fail to sell well in Hong Kong.

After finalizing the North American rights to "The Man from Nowhere," Qin Keqing will return to Hong Kong. The film's release date in Hong Kong is September 9th.

January 16th.

The Venice Film Festival awards ceremony was held on September 11th. Qin Keqing was delayed for a few days due to negotiations with Sony Classics, so he missed the Hong Kong premiere of "The Man from Nowhere".