Blind bidding permitted, when
A movie distributor can sometimes make deals for a film before theater owners see it (called 'blind bidding'), but only in certain cases — like if the movie is based on a play that ran at least 6 months, a best-selling book, or a TV or radio show. If blind bidding is allowed, the distributor must send a written invitation that tells theater owners who the movie is made for and what rating it is expected to get. Bids can only happen in the 180 days before the movie comes out, and theater owners cannot send money more than 14 days before the release date. If the movie turns out to be very different from what was described, or gets a stricter rating than promised, the theater owner can cancel the deal and get all money back within 7 days. Every blind bid contract must also state how much money the distributor will owe the theater owner if the deal gets canceled this way.
407.357. permitted, when — , contents — , . — any other of sections 407.350 to 407.357, a of pictures may blind motion pictures based upon a play or which has been performed for a period of not less than six months for the public, or based upon published manuscripts which are in the top ten best sellers in sales or manuscripts having sold at least five hundred thousand copies to the general public from the time of copyright, or based upon television or radio scripts which have been previously televised or broadcast on a network to the public. Provided, however, if a distributor bids from s for the purposes of entering into a license agreement and engages in blind bidding for such , the invitation to bid shall be in writing and shall specify, in addition to any other the distributor desires to to an exhibitor, the audience to which the motion picture is principally directed and the rating anticipated for the motion picture which shall be specified by using the rating system of the . Blind bidding as provided for in section 407.353 and this section may only take place during the one-hundred-eighty-day period immediately preceding the of the motion picture which is the subject of the license agreement and no exhibitor shall forward any money to a distributor earlier than fourteen days immediately preceding the designated release date of the motion picture which is the subject of the license agreement. A license agreement is voidable by the exhibitor if the d motion picture does not substantially to the information provided by the distributor about the motion picture in the invitation to bid, or if the rating given by the Classification and Rating Administration is more restrictive than the rating indicated by the distributor in the invitation to bid, and all money received by the distributor from the exhibitor before the release of the motion picture under the terms of the license agreement, shall be returned to the exhibitor within seven days. All license agreements entered into as a result of blind bidding shall contain a stating the amount of damages payable to the exhibitor by the distributor in the event the license agreement is voided under the terms of this section.
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Source & history notes
(L. 1982 S.B. 525 § 4)
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