Production companies may pay money for life story rights. Payments are made to avoid future litigation. That does not necessarily mean that significant rights always exist. Life story rights agreements often include cooperation agreements whereby the person selling life story rights agrees to cooperate in providing additional information, cooperation, additional materials and securing or helping to secure releases from third parties. Sometimes, per diem fees are given.
Agreements are often in the form of options.
An option is an agreement whereby life story rights may be acquired in the future by exercising the option including the payment of certain sums. The option generally gives the producer a period of time in which to try to develop a property associated with the life story rights before having to pay the full purchase price. Generally a smaller payment is made on signing an option agreement. For example, production of certain types of works such as a television movie or theatrical motion picture may trigger additional payments. An option usually must be exercised in exactly the manner stated in the option agreement in order to actually acquire the life story rights.