Comic and Webtoon Artists Become Parties to Secondary Copyright Contracts

Possible to Proceed Separately from Serial Contract
Ministry of Culture, Sports and Tourism "Promoting Secondary Commercialization... Increasing Sales and Profits"

A safety device to resolve the unfairness experienced by the late writer Lee Woo-young has been established. The Ministry of Culture, Sports and Tourism announced on the 7th that it has created draft proposals for the 'Secondary Work Creation Right License Agreement' and the 'Secondary Work Creation Right Transfer Agreement' to establish a fair contract culture in the fields of comics and webtoons. In consultation with related organizations such as the Fair Trade Commission, the administrative notice procedure will be followed, and the plans will be finalized and announced next month.

[Image source=Yonhap News]

This measure reflects the increased interest of creators in secondary work creation rights. Previously, secondary work creation rights and related matters were included as clauses in the main contract. According to last year's webtoon industry survey, more than half of the writers (55.4%) considered this unfair. In September last year, the Fair Trade Commission also imposed fines on Kakao Entertainment, which had contracted with web novel contest-winning writers by granting secondary work creation rights.

The new standard contract requires separate agreements regarding the creation and use rights of secondary works such as animations and dramas. It also includes provisions related to the 'obligation to notify in advance about contracts with third parties,' which was raised following the passing of writer Lee Woo-young last year. As a result, comic and webtoon creators can now enter into contracts concerning the use of secondary works separately from serialization contracts. However, since this is a government recommendation without binding force, it is expected to take some time to become established.

A Ministry of Culture, Sports and Tourism official said, "It can be used either as an annex to the main contract or as a separate contract," and added, "It will promote the secondary commercialization of comic and webtoon works, leading to increased profits and sales for creators and companies."

The Ministry also created amendments to six existing standard contracts, including publishing rights setting agreements and webtoon serialization contracts. These amendments make it easier to clearly state revenue sharing ratios and formalize the right to receive related information that serves as the basis for settlements. Additionally, the minimum and maximum number of cuts per work will be agreed upon and set, and confidentiality conditions have been relaxed to allow creators to have contracts reviewed by lawyers and others.

The existing 'Management Delegation Agreement' has also been reorganized into the 'Agency Brokerage Agreement.' A Ministry official explained, "Since the scope of 'management' commonly used in the industry was ambiguous, the scope of work in the contract was clarified according to the Copyright Act's 'Copyright Agency Brokerage Business,'" and added, "This will be usefully applied when copyright holders entrust agency brokerage work related to commercialization while retaining copyright."