> For the complete documentation index, see [llms.txt](https://docs.cinelaunch.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.cinelaunch.io/agreement-types/pfd-agreement.md).

# PFD Agreement

#### A production/finance/distribution agreement, most commonly referred to as a “PFD agreement,” is when a distribution company (studio, VOD company, streaming platform, etc) hires a production company to produce a film, and the distribution company agrees to directly finance production of, and to distribute, the film.&#x20;

Under these agreements, the production company is little more than a dependent agent of the distribution company and is subject to the complete control of the distribution company on all aspects of production.&#x20;

The grant of distribution rights to the distribution company is always of all rights **in** **perpetuity** throughout the world, making the distribution company the complete and absolute owner of the film. The production company often retains a theoretical interest in net profits, if any, generated by the film, and often not even that.


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