Creating a Fair Publishing Ecosystem with Government Standard Contracts

[Asia Economy Reporter Donghyun Choi] The Ministry of Culture, Sports and Tourism announced on the 23rd that it has finalized and officially notified the 'Government Standard Contract Drafts for the Publishing Sector,' prepared with the participation of various stakeholders in the publishing field, including authors, the publishing industry, and collective management organizations.

The newly notified government standard contracts consist of a total of 10 types: six revised drafts reflecting the changed publishing environment based on the existing standard contracts, and four newly established standard contracts for audiobook production and transactions.

The revised drafts newly establish definitions for the purpose of the contract and terminology, and impose an obligation on publishers to explain the contract contents to ensure a clear understanding before contract signing. Additionally, a clause was added requiring publishers to notify authors of changes such as contract period extensions before the contract termination notice deadline.

Furthermore, the new standard contracts leave the contract period blank in principle, to be determined by mutual agreement between the copyright holder and the publisher. It also clearly states that the right to create derivative works belongs to the copyright holder, ensuring fair contracts between the contracting parties.

Four contracts for audiobook production and distribution were also established to build a virtuous cycle production environment and transaction base for the audiobook industry ecosystem.

In particular, the Ministry of Culture, Sports and Tourism plans to expand the use of government standard contracts, which were previously specified only as a requirement for the ‘Excellent Publishing Content Production Support Project,’ to three other production support projects: ‘Publishing Content Creation Fund Support,’ ‘Excellent Content eBook Production Activation,’ and ‘Audiobook Production Support.’ It will also apply to book purchase projects such as the ‘Sejong Book Selection Purchase Support Project’ and the ‘Youth Book Token Support Project.’

However, considering the publicity period after notification and differences in publishing contract and publication timing, the application is limited to contracts between authors and publishers, and between publishers (issuers) and producers, with contract dates after April 1 of this year. Accordingly, cases applying to the ‘Sejong Book Selection Purchase Support Project’ and the ‘Youth Book Token Support Project,’ which target already published works, are expected to occur from 2022 onward.

The preparation process of these standard contracts involved advisory committee members from 10 organizations, including the Korea Publishers Association, the Korea Federation of Publishing Associations, the Korea Electronic Publishing Association, the Korea Writers' Association, the Korea Novelists Association, the Children's and Youth Book Writers' Solidarity, the Korea Publishing Cooperative, the Korea Library Association, the Korea Literary and Academic Copyright Association, and the Korea Reproduction and Transmission Copyright Association. After two public hearings and consultations with the Fair Trade Commission, the third advisory committee unanimously accepted the final draft, confirming it.

To promote awareness and use of the government standard contracts, the Ministry of Culture, Sports and Tourism will establish an online consultation office for the standard contracts starting today and open an expert consultation page on the Korea Publication Industry Promotion Agency website. It will also post explanatory booklets and promotional materials on the Ministry and the Korea Publication Industry Promotion Agency websites. Next month, it plans to hold an online briefing session for publishing workers and authors and produce and distribute explanatory videos on the standard contracts.

A policy official from the Ministry of Culture, Sports and Tourism stated, "The significance of this government standard contract draft lies in its creation with the participation of diverse stakeholders in the publishing sector," adding, "We will continue to promote the spread of government standard contract use and seek cooperation from related associations and organizations."