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We (my wife and I) did a deal with a distributor and purposely did not give them 2257 docs and told them that every VOD/Net deal had to be cleared with us first.
We maintained the records for 2257 which for DVDs is legally sufficient. For VOD/Net those companies need the docs or they need you to sign an agreement staying you will be their 3rd party record holders.
Despite that her content still found it's way on to VOD sites without our approval. When we found out - the VOD sites stopped paying the distributor and actually cut her a check to make up for all of the money they wrongly paid to the distributor to forgo a copyright infringement lawsuit.
Realize some larger DVD retailers won't sell your hard goods without being able to sell VOD. It's a required. In that case send the docs yourself to the retailers. Sorry to say but do not trust any distributor. The DVDs they will sell out of the back door on you should be enough of a side deal to keep them happy. That's almost impossible to stop.
Keep your docs... And physically count you product each month. If 500 are replicated make sure you can actually see 500 units in the warehouse. And continue to count them as they sell. 50 going our the warehouse door isn't a lot for you but if you're distributor is doing that to 10 lines every month, it's a nice little cash reserve for him.
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