Creators' Rights Strengthened in Contest (Comprehensive)

Government Distributes 'Creative Works Contest Guidelines'
Clearly Defines Ownership and Rights of Copyright Property

The Ministry of Culture, Sports and Tourism and the Korea Copyright Commission announced on the 14th that they will distribute the revised "Creative Work Contest Guidelines" to protect the rights of creators participating in contests.

The revision focuses on clearly defining the subject of copyright ownership and the relationship of rights. The phrase "cases where copyright exceptionally belongs to the organizer" was deleted from the existing guidelines. Copyright belongs to the entrant, and the organizer receives permission to use the winning works only to the minimum necessary extent.

If the organizer needs to use the work beyond the scope specified in the guidelines or requires the transfer of copyright, a separate agreement with the winner must be made. The content of the usage permission was also specified. Organizers must clearly define the conditions of usage permission in the guidelines, such as exclusive or non-exclusive rights, usage period, method, and frequency.

The Ministry of Culture, Sports and Tourism and the Commission will publish the revised guidelines on their official websites on the 20th and distribute them to central government ministries, local governments, and public institutions starting from the 27th. They also plan to hold briefing sessions to ensure the guidelines apply to contests held by the private sector.

A Ministry of Culture, Sports and Tourism official stated, "A review of public sector contests over the past four years showed that in 152 out of 525 cases (28.9%), the copyright of submitted works belonged to the organizer," adding, "There is a need to raise awareness to enhance the rights of entrants." They also said, "We hope the revised guidelines will improve the rights and interests of entrants and contribute to creating a healthy copyright ecosystem."

Below is the Q & A related to the "Creative Work Contest Guidelines"

When does copyright for submitted works arise?

It arises when the entrant creates the work. Procedures or methods such as registration, deposit, or submission are not required.

How do copyright and economic rights differ, and what are economic rights and moral rights?

Copyright consists of moral rights and economic rights. Moral rights protect the author's honor and personal interests related to the work. They cannot be transferred or inherited by others. Economic rights protect the author's economic interests and can be transferred to others.

What is the right to create derivative works?

It is one of the shares that make up economic rights. It refers to the right to create and use an original work by translating, arranging, modifying, adapting, or producing videos based on the original work. Examples include webtoons, dramas, and movies based on novels.

How do usage permission and transfer of economic rights differ?

Using someone else's work can be done by obtaining usage permission (Article 46 of the Copyright Act) or by transferring economic rights (Article 45 of the Copyright Act). Usage permission allows the user to perform acts such as reproduction, distribution, and transmission with the copyright holder's consent. Economic rights are not transferred in usage permission, which distinguishes it from the transfer of economic rights.

Does copyright for contest submissions automatically belong to the organizer upon submission?

The organizer cannot unilaterally acquire economic rights to submissions solely based on the contest guidelines. Especially for non-winning submissions, the organizer cannot acquire any rights. The Fair Trade Commission ruled on August 7, 2014, that contest guidelines stating all rights belong to the organizer are unfair and corrected them to state that all rights belong to the entrant.

Why must the organizer make a separate agreement with the winner when transferring economic rights for winning works beyond the contest guidelines?

When transferring economic rights for winning works, specific agreements are needed regarding which economic rights are transferred, the transfer period, and how the transfer compensation is paid. This process balances the rights relationship between the entrant and the organizer and provides an opportunity to coordinate their interests.

Is there a reference form for agreements on transferring economic rights for winning works?

A "Standard Contract (Copyright Standard Contract)" is distributed. It can be downloaded from the websites of the Ministry of Culture, Sports and Tourism and the Korea Copyright Commission.

Are the prize money for winning works and compensation for using (or transferring economic rights of) winning works different?

In principle, benefits such as prize money or goods awarded to winning works are not considered pre-determined compensation for the rights to the winning works. These benefits are generally regarded as rewards or encouragements provided by the organizer to attract interest and participation from contest entrants. However, if the scope of use of the winning works is specifically defined and is appropriate considering the contest's purpose and general trade practices, it may not be unfair to not pay separate compensation for use. Therefore, if the usage scope of the winning works is specifically defined to the minimum necessary for the contest's purpose and is appropriate in light of general trade practices, compensation for the use of the winning works can be replaced by prize money or goods.

Is there a standard for calculating compensation for the use of economic rights of winning works?

There is no legal standard for setting compensation for the use of economic rights. It is left to the parties' agreement. However, if the amount is excessively low compared to the scope of usage permission considering the usage scope, contest purpose, and general trade practices, the usage permission may be invalidated.

This content was produced with the assistance of AI translation services.