Rights Reversion
Contractual provision allowing original rights holders to reclaim property rights after specific conditions or time periods.
Definition
A contractual mechanism that returns intellectual property rights to original owners or creators after certain triggers occur, such as failure to produce within specified timeframes, inadequate distribution efforts, or expiration of license periods.
Reversion clauses protect creators from indefinite rights retention by parties who fail to actively develop or exploit properties, ensuring that valuable intellectual property can return to creators for alternative development or exploitation opportunities.
Why It Matters
Rights reversion provisions provide crucial protection for creators and rights holders against indefinite rights retention by parties who fail to develop properties effectively, preserving opportunities for alternative development paths.
Reversion clauses can significantly increase long-term property value by preventing rights from being trapped in development hell or inadequate distribution arrangements that fail to realize intellectual property potential.
Examples in Practice
Comic book creators often negotiate reversion clauses that return film rights if studios fail to commence production within specified timeframes, preventing indefinite rights retention without active development.
Book authors may include reversion terms in adaptation agreements that trigger if films aren't produced within agreed periods, allowing them to seek alternative adaptation opportunities.
Television format creators sometimes negotiate reversion clauses that return rights if broadcasters fail to produce minimum episode orders or achieve specified performance benchmarks.