WEBTOON Basics Copyright and Contracts for Webtoon Artists
GCC Academy
Webtoon artists
and aspiring webtoon artists
Hello
I'm here today to explain
the basics of copyright contracts related to webtoons
I am attorney Kim Seong-joo
Hello everyone
Everyone
Please take a look at the photo I'm showing you now
This is a picture of the warm-up exercises we must do
before swimming
Skipping warm-ups
won't get you banned from the pool
But entering the water without warming up
can cause muscle cramps
Hypothermia
Or even serious conditions like cardiac arrest
That's why swimming instructors always emphasize
before getting into the water
The content of today’s lecture
can be seen as a warm-up exercise
similar to the stretches you do before jumping into a swimming pool
As you pursue a career
as a webtoon artist
You can still work
without knowing these details
However, to prevent potential issues that may arise
Understanding at least
the basic rights
related to your creations is essential
In June of this year, the Ministry of Culture, Sports, and Tourism
revised and published the standard contract for the comics and webtoon industry
To make these revisions
Creators, business operators, and legal professionals
in the field came together
Putting their heads together and working hard
Since this contract was carefully crafted with great effort
I’ll explain its key terms
and essential articles
in today’s lecture
The revised standard contracts
are divided into eight main types
These include: Publishing Rights Agreement
E-Book Publishing Agreement
Webtoon Serialization Agreement
Comic Copyright Agency Agreement
Co-Author Agreement
Project-Based Comic Agreement
Secondary Work License Agreement
Secondary Work Transfer Agreement
There are these eight contracts
I’d like to discuss each of these contracts in detail
Unfortunately, the time for this lecture
is a bit too limited for that
Instead, I’ll focus on
the common and essential articles
you need to be aware of
after debuting as a webtoon artist
Let’s get started
Author and Copyright Holder
Everyone, first
One key legal term runs through all the revised standard contracts
we mentioned earlier
It’s a term that every webtoon artist
must understand
Copyright
The contracts we’ll discuss today are
defining how copyright is used, licensed
transferred, or shared
These are contracts that determine these things
Now, we need to understand the basic concept
related to copyright
First, there is the concept of a Work
In Korea, we have the Copyright Act
which defines what constitutes a work
This law defines a work as
A creative production that expresses human thoughts and emotions
It's written like this
First, humans are the creators of works
Second, the work must be related to thoughts conceived by the mind
and emotions felt by the heart
Third, and most importantly
These thoughts and emotions must be expressed
Now, if you keep your thoughts and feelings to yourself
without expressing them
Can they be considered work?
The answer is no
Therefore, when and how you
express your thoughts and emotions
becomes a key factor in determining
whether something qualifies as a work
So, what is an Author?
An author refers to
the person who creates a work
Since a human must create a work
The author is naturally the human who created the work
Now
These days, creative work using artificial intelligence is rising
Let me ask you a question
You know, AI, artificial intelligence is so famous
Can an artwork created by AI
be considered a work under copyright law?
As I mentioned earlier
humans must make creative works
to be considered a work
Therefore, even if an AI-generated piece shows creativity
It is difficult to recognize it as a work under current copyright law
So, what is Copyright?
Copyright refers to
the exclusive personal and property right of an author to use their work
Or to authorize, license
or transfer its use to others
This is what we call as copyright
In Korea
The Copyright Act protects these rights
The comics and webtoons you create
express your thoughts and emotions through text and illustrations
Therefore, comics and webtoons are considered works
These works are protected and utilized
through the rights granted by the copyright
You can understand it this way
Let’s dive deeper
Let's look at the Webtoon Serialization Agreement
from the standard contracts
One important term
that appears in this agreement is Exclusive Publication Right
First, let’s break down the meaning of "exclusive"
This means that no one can use copyrighted work
without permission
from the rights holder
The Publishing Agreement in the standard contract
explains what exclusive rights mean
According to the standard contract, when a copyright holder
grants publication rights to a publisher
Even the copyright holders
cannot publish
the same or a similar work
independently
or through a third party
This is because the publisher has already granted
exclusive publication rights
Once exclusive rights are granted
even the copyright holder cannot freely use the work
making it a fairly strong legal right
Therefore, from the copyright holder’s perspective
It's crucial to carefully evaluate
whether the publisher is
trustworthy and reliable
before signing such an agreement
On the other hand, the publisher must fully understand the meaning of this right
and ensure that the copyright holder doesn’t grant the same rights to a third party
which could lead to legal disputes
So, what is an Exclusive Publication Right?
Simply put, it's the right for a business to
serialize a webtoon on its platform
While preventing the same webtoon from being serialized on other platforms
You can understand it this way
From the business's perspective, this can be considered
a necessary contractual right
However, granting exclusive publication rights
isn't always required
Let's consider non-exclusive serialization
This allows a webtoon to be serialized
on multiple platforms simultaneously
In such cases
Granting exclusive publication rights would be inappropriate
Instead, the appropriate right to grant would be
the Non-Exclusive Reproduction and Transmission Right
One of the revised standard contracts
is the Co-Author Agreement
This contract is used
when multiple creators
collaborate to produce a comic or webtoon
In the past, a single creator
often handled both writing and illustrating
However, the webtoon production process
has become increasingly specialized
So, the roles of writers and illustrators are divided
In some cases, handling storyboarding, backgrounds, and coloring
The process becomes even more specialized
when making a work
The Co-Author Agreement
is intended for creators
working in this collaborative webtoon production system
Interestingly, the Co-Author Agreement
is unique in that it uses the term Author
unlike other standard contracts
It’s the same term we explained earlier
when explaining the concept of copyright
Interestingly, standard contracts
such as the Webtoon Serialization Agreement, Copyright Agency Agreement
and Publishing Rights Agreement
all use the term Copyright Holder
In contrast, the Co-Author Agreement
explicitly uses the term Author
Why is that?
As explained earlier, an Author
refers to the person who creates the work
For example, someone who draws a comic by hand
In this context, many of you listening to this lecture
would be considered authors of your works
In contrast, a Copyright Holder is the person who owns the copyright
Copyright refers to the personal and property rights
that allow the author
to use their work
or authorize others to use it exclusively
I mentioned it earlier
Those who hold these rights
are called copyright holders
Copyright is divided into Moral Rights and Economic Rights
According to the Copyright Act
Economic Rights can be transferred
in whole or part
This means that economic rights are not exclusively reserved for the author
If these rights are transferred
the recipient becomes the work's
Copyright Holder
Some of you
may serialize your creations on a platform
as independent webtoon artists
Others may prefer working at a studio or company
creating webtoons as a team
There’s no definitive answer as to
which is better or more advantageous
As various creative environments have emerged in the webtoon industry
Not only the model where a single creator handles both writing and illustrating
for platform serialization
But also a division of labor across different stages of webtoon creation
and employment at studios that plan and produce webtoons
while providing creators with a salary
The Copyright Act defines
the concept of Work Made for Hire
to determine who holds the rights
to work created within a company
Let’s take a quick look at the Copyright Act
According to Article 2, Section 31 of the Copyright Act
A work made for hire refers to a work created by an individual engaged
in the business of a corporation, organization, or other employer
under its planning and direction
In simpler terms
If a creator employed by a company receives a salary
and produces creative work
that work is considered a Work Made for Hire
So, who is considered the author
of a Work Made for Hire?
Article 9 of the Copyright Act
provides the answer
It states that if a work made for hire is published under the name of a corporation or organization
The corporation or organization becomes the author
unless otherwise specified by a contract or employment rules
In other words, unless specified
Te copyright for works created by creators
employed by a company or studio
belongs to the company or studio
Does this necessarily disadvantage creators?
Not necessarily
According to artists' tendency
Some may prefer working for a company, receiving a stable salary
social insurance, paid leave
and severance benefits
On the other hand, some may
choose to work independently, create works on their own
and enter contracts with companies for serialization
and revenue sharing
The important point is that
who holds the copyright
depends on the type of contract
It’s crucial for creators to understand this clearly
So far, we’ve covered the difference between Author and Copyright Holder
and who owns the copyright in the case of
Work Made for Hire
Now, let’s move on to
the concept of Co-Authors
and closely examine the relevant contract terms
Let me ask you a question
Suppose someone approaches you after seeing a comic character you created and says
I'd like to use
this character for my business
I believe I can make a lot of money with it
If I use this character
it will benefit you, too
However, to run this business
I need to be recognized as
a legitimate rights holder of the character
This person then asks
to be registered as a co-author
of your comic character
How would you respond to such a request?
First, we previously discussed what an Author is
According to the explanation I provided earlier
An author creates the work
In this case, the person in question intends to commercialize a created character
but did not create the character themselves
Therefore, since they are not the author
Their request to be registered as a co-author
would be considered unjustified
Derivative Works, Transfer, and Licensing
The revised standard contracts have
The Derivative Work License Agreement
and the Derivative Work Transfer Agreement
The comics and webtoons you create
are no longer limited to their original forms
Those works are
serialized globally and translated
and adapted into films
dramas, plays, and musicals
Under the Copyright Act
such adaptations are referred to as Derivative Works
Let’s take a look at the Copyright Act
According to Article 5, a Derivative Work is
defined as a creative work produced by translating, arranging, transforming, adapting, or producing a film
or through other methods based on an origin
It's prescribed like this
The law also states that derivative works
are independently protected from the original work
These days, many movies and dramas
are based on
webtoon originals
Some examples that come to mind include
The dramas 'Misaeng'
and 'Itaewon Class'
And the film 'Along with the Gods'
More recently, there was
the OTT drama 'Moving'
Even games are included
For instance, the famous game 'Lineage'
This is
originally based on a comic
In this way, comics and webtoons go beyond their original formats
transforming into new types of content
that attract a broader audience
Movies, games, and dramas based on webtoons
are the core focus of this session's contracts
Derivative Works
The right to create derivative works is called
the Right of Derivative Work Creation
The two standard contracts related to derivative works
may seem similar
but are distinctly different
One is the Derivative Work License Agreement
and the other is the Derivative Work Transfer Agreement
Both deal with derivative works
But one involves licensing, while the other involves transferring rights
What are the differences between these two?
Understanding the difference between licensing and transferring is crucial
The terms are quite self-explanatory
Let’s start with Transfer
Transfer means handing over
The ownership of the rights
completely shifts to the other party
If you transfer your copyright, you are no longer the rights holder
The recipient becomes the new copyright holder
On the other hand, Licensing
means granting permission
The rights holder allows the other party
to use the work under specific conditions while retaining ownership of the rights
In this case
The licensee is only authorized to use the work
while the rights holder remains the original owner
I often compare this
to real estate contracts for easier understanding
Transfer is like selling a property
While Licensing is similar to renting or leasing a property
This analogy might help you
grasp the concept more quickly
The distinction becomes clear when looking at the standard contracts
The License Agreement is labeled
"License for the Right to Create Derivative Works"
The Transfer Agreement is labeled
"Transfer of the Right to Create Derivative Works"
Since the terms are differentiated
When using standard contracts
There's little room for misunderstanding
As long as you understand the concepts of licensing and transfer
that I just explained
However, everyone
using the standard contract is not mandatory
So, if you enter into a contract
with a company that doesn’t use it
You might encounter agreements where terms like
License or Transfer are not clearly specified
In such cases
How can you tell the difference between the two?
From my experience reviewing various contracts
When you look at contracts
You'll often see terms like "Assignment of Rights"
If you come across this phrase
It typically indicates Transfer
As "assignment"
implies that the rights
fully belong to someone else
On the other hand
terms like "Grant of Rights" are commonly used, too
This phrase likely indicates
Licensing
As "granting" means allowing someone
to use the rights
So, what’s the best approach?
Don’t struggle alone
Just ask
Directly ask the other party presenting the contract
Is this a license agreement
or a transfer agreement?
Being straightforward
and getting a clear answer is the simplest way
Then, consult a professional
By combining the other party’s response with a legal expert’s interpretation
You'll hardly ever be confused about
whether the contract involves
licensing or transfer of copyright
Contract Cancellation and Termination
Let’s look at the provisions related to
Contract Cancellation and Termination
Conflicts can arise at any stage
of the contract process
Disagreements may occur if one party
fails to fulfill the agreed terms
or there are misunderstandings
about mutual obligations
Unfortunately, these conflicts can sometimes
lead to the premature end of a contract
While such situations should be avoided whenever possible
They are not uncommon
The provisions you see here
outline the criteria and conditions for ending the contract
when both parties must part ways before fulfilling their obligations
This is the Contract Termination or Cancellation article
Termination and Cancellation
It's a subtle difference
What is the difference between termination and cancellation?
Comparing these concepts
to a breakup is
the most intuitive explanation
Both involve ending a relationship
But if we compare it to marriage
Cancellation is like annulment
You can see like that
Meaning the marriage
is considered invalid from the start
It’s as if the relationship never existed
so the parties have no ongoing obligations
However, if something has already been exchanged
both parties must restore things to their original state
For example, if a Derivative Work Creation Agreement
was canceled
The creator must return
any payments
received from the company
Similarly, the company must return the original manuscript or any related materials
received from the creator
If the company had business plans for the derivative work
Those plans must also be withdrawn
Then, what is termination?
Termination is like a divorce
in a marriage
You can understand it this way
The couple had already held a wedding
Made promises
Moved in together
and maybe even had children
However, they might decide to part ways
if things don't work out
But does divorce
erase everything that happened
during the marriage?
No, it doesn't
For example, if they bought a house together
They need to decide how to split or manage it
If they have children
They must agree on custody
and parenting arrangements moving forward
Similarly, in a contract termination
all rights and obligations
up until the termination remain valid
They are not treated as if they never existed
However, from the point of termination onward both parties are no longer bound
and have no further obligations to each other
Now that we understand the conceptual difference
Let's examine the Cancellation and Termination articles
The recently revised standard contracts
all include these articles
Because they are considered essential provisions
in any contract
However, neither cancellation nor termination
can be done at will
Can you break off a contract just because you don’t like how things are going?
No
Promises can’t be overturned
as easily as flipping a coin
That’s why, if you review the cancellation and termination articles
You'll see that when one party is found to be in breach of contract
The other party must set a specific period
and formally request compliance with the contract terms
Cancellation or termination becomes legally permissible
if the breaching party
fails to comply even after this request
According to the relevant provisions in the standard contract
The party seeking cancellation or termination
may do so before
the contract is executed
While only termination is allowed after
the contract has commenced
Why distinguish between before and after execution?
This is due to the difference between cancellation and termination
The contract can be terminated
or canceled before execution since canceling it means voiding it
as if it never existed
However, after execution
The contract has already taken effect
And rights and obligations have been established
Therefore, the contract structure is designed to prefer termination
over cancellation
after execution has begun
Termination ends the contractual relationship moving forward
even if rights and obligations have already been established
Of course, cancellation is impossible after execution?
No
Under civil law and other relevant legal provisions
cancellation can still be exercised
Additionally, if both parties mutually agree
the right of cancellation may be exercised even after the contract has commenced
This shows that ending a contract
is not something to be taken lightly
The procedures and conditions involved can be quite complex
The key takeaway is that
Once a contract is signed, it is difficult to reverse
or terminate halfway through
Therefore
It's essential to carefully review the standard contract terms
and approach the contract process cautiously
Confidentiality articles
are commonly found in contracts
Emphasizing the importance of keeping shared information
private between the contracting parties
Let's take a look at one thing
The "Confidential"
What exactly does "confidential" mean in this context?
Is it as simple as saying
"Shh, this is a secret"?
No, it's not that straightforward
According to the Supreme Court
confidential information in a confidentiality article
Refers to:
Any information related to business activities that gains an advantage
by not being disclosed to others
The determination should be made carefully
based on whether its disclosure
would objectively hinder the fair conduct of business
That's how the Supreme Court sees
So, would contract terms that creators receive from companies
Such as specific MG amounts
or revenue-sharing ratios
be considered confidential information?
I believe there’s a high possibility they would
Suppose one artist's MG is 1 million KRW
while another's MG is 1.5 million KRW
Let’s say such contracts exist
If such contract terms were disclosed
The company would be disadvantaged during negotiations
However, if the company discloses such information
through media or public announcements
It likely wouldn’t be considered confidential
But if artists share undisclosed terms
on platforms like social media
This could constitute a breach of confidentiality
So, you should be careful
However, consulting legal professionals, organizations
or associations for legal advice
or providing relevant information to investigative authorities
during legal proceedings
would be considered exceptions to confidentiality obligations
Therefore, such actions would not be regarded
as a breach of confidentiality
The revised standard contracts clearly specify
exceptions to confidentiality obligations
is a notable feature
We’ve now reviewed some key aspects
of standard contracts and copyrights
As I mentioned
Understanding contracts and copyrights
is like learning warm-up exercises
I want to emphasize that
knowing the key terms of contracts and understanding copyright
is really crucial
Does a lack of understanding of contract terms
or copyright concepts
mean you can’t sign a contract?
No, it doesn't
As adults
You can enter contracts independently
according to the law
However, if you sign a contract
without understanding its key terms
or knowing its rights
and obligation
the likelihood of disputes
or legal issues
arising later significantly increases
The revised standard contracts
provide clear and detailed guidance
on the essential preparations
before starting webtoon creation
I hope this lecture has helped you better understand
copyright, content creation
and webtoon contracts
Thank you for listening until the end
Author and Copyright Holder Concepts of Work, Author, and Copyright Work: A creative output that expresses human thoughts and emotions
Author: The person who creates the work Copyright: The moral and economic rights that allow the creator of a work to exclusively use it or permit others to use, license, or transfer it
Exclusive Publication Right The right of a platform operator to publish a webtoon exclusively on their platform prevents it from being published on other platforms Not applicable for multi-platform serialization
Author vs. Copyright Holder Author is creator of the work and copyright holder owns rights Economic right isn't exclusive to author, transferable
Work Made for Hire A work created by an employee under a company’s direction Unless specified otherwise, the company holds the copyright
Derivative Works, Transfer, Licensing Derivative Work A creative work made by transforming based on original work The right to create derivative works
Transfer & Licensing Transfer: Ownership of rights shifts to another party Licensing: Owner allows another party to use the rights under specific term
The standard contract clearly distinguishes between the two terms If the contract’s terms are unclear, consult both the other party and legal experts
Contract Cancellation vs. Termination Cancellation Treated as if the contract never existed If exchanges occur, both parties must restore
Termination Rights and obligations remain valid up to the termination point No obligations exist after termination
A party seeking cancellation or termination may cancel or terminate the contract before its execution, but only termination is allowed after execution