Ring and cancel film (7)
I believe the answer is:
annulet
'ring' is the definition.
(annulet is a kind of ring)
'cancel film' is the wordplay.
'cancel' becomes 'annul' (annulling is a kind of cancelling).
'film' becomes 'ET' (E.T. the Extra-Terrestrial).
'annul'+'et'='ANNULET'
'and' is the link.
(Other definitions for annulet that I've seen before include "Small band around a column" , "Small ring (heraldry)" , "small charge" , "Band around a column; heraldic ring" , "Heraldic small ring" .)