For film producers, attracting investors through the Internet and social media seems like a dream come true. Kickstarter, Indiegogo, RocketHub and other online platforms have yielded well-known success stories. But for every Veronica Mars or Zach Braff sequel, there are many projects which have not been successful, or have encountered unanticipated risks and problems.
The laws governing fundraising over the Internet are changing all the time. New SEC rules took effect on September 23rd, and New York recently approved new post-production tax credit incentives. To help producers understand and take advantage of Internet-based fundraising and these new sources of support, NYWIFT has asked Tom Selz, of entertainment law firm Frankfurt Kurnit Klein & Selz, to provide an overview of what you need to know. Please join us for drinks, hors d’oeuvres and a one hour presentation from one of the nation’s leading film finance practitioners.
· An overview of the crowdfunding or “donation” model
· A rundown of the new SEC rules
· Differentiating between large (“accredited”) and small investors
· “Verifying” accredited investors under the new rules
· Providing investor education materials
· Platform rules: submitting financial statements and information about your company
· Pricing and advertising your offer
· Dealing with “finders” or “referrers”
· Combining large investor and small investor offerings
· Duties owed to investors
· The New York post-production credit: which costs qualify?
Thomas D. Selz is a founding partner of Frankfurt Kurnit Klein & Selz which focuses on all aspects of entertainment law. His practice includes advising on documentary film, fictional films, television pilots, TV programs, live productions, publishing and more. Selz also counsels clients on copyright and trademarks, collaboration agreements and development through production and distribution. He focuses on mergers and acquisitions, secured transactions, private placements and public offerings, including crowd-funding laws and regulations. For more than three decades, Selz has helped structure domestic and international tax-advantage financing and he has helped devise financing structures that permit clients to draw on funds from countries outside the US.
Selz has authored numerous articles on entertainment law. He is Adjunct Professor at Columbia Law School and prior to that he was Adjunct Professor of Law at New York University School of Law. He was a director of the Independent Feature Project from 1986 to 2001, and served as General Counsel to the organization from 1986 to 2008. He was recently recognized by New York Magazine as one of the New York area’s best entertainment lawyers, and has been listed in Best Lawyers in America for more than ten years.
Special thanks to Marc Handelman of Frankfurt, Kurnit, Klein & Selz.
Produced by Octavia Taylor.
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NYWIFT programs, screenings and events
are supported, in part, by grants from New York City Department of
Cultural Affairs in partnership with the City Council, and New York
State Council on the Arts with the support of Governor Andrew Cuomo and
the New York State Legislature.
Last updated: Oct. 29, 2013