This is a provision that a TV studio or writer may include in a deal with a network in regards to a certain project. This guarantees the studio that the pilot will be shot, or the studio will be paid a fee if the pilot is not shot. This is done for high-profile projects or as incentive when more that one network is bidding for the project. Script penalties can range from $50,000 to $200,000. Pilot penalties can range all the way up to $1M.
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