XI. Film Copyright Registration and Trading

In order to protect the legitimate rights and interests of the copyright owner of the work and to provide preliminary evidence for the settlement of copyright disputes, the copyright owner of a cinematographic work may register copyright at the work registration department and its handling authority, the China Film Copyright Association, and a copyright registration agency.According to the Trial Measures for Voluntary Registration of Works issued by the National Copyright Administration in 1994, copyright owners can directly apply for registration of works at the handling agency (where there is no handling agency, directly to the registration department). The names and addresses of specific works registration departments and handling agencies can be found on the offi cial website of the China Copyright Administration. China's administrative division is based on “province” and “city”. Diff erent regions have diff erent registration agencies so the materials copyright owners need to provide are slightly diff erent, but the validity of the copyright ownership certifi cation is national. Taking the Shanghai Copyright Association, the handling agency of the Shanghai Press and Publication Bureau as an example, according to the consultation, cinematographic works, as well as screenplays (written works) can be registered at the Shanghai Copyright Bureau. The applicant can submit application materials to it, and the agency personnel will review the copyright registration materials after acceptance, and immediately publish the basic information of the approved works online and the Copyright Registration Certifi cate will be issued within 30 working days. There is no charge for registering works in Shanghai. Copyright registration application materials: (1) an application form for work registration; (2) an application form for voluntary registration of works; (3) a description of voluntary registration of works; (4) a guarantee of rights for voluntary registration of works; (5) comparative samples for registration of works; and (6) documents certifying rights.

In addition, online copyright registration can be performed on the FORP film and television copyright registration platform of the China Film Copyright Association, where either the copyright of a movie or, independently, the copyright of works such as scripts and videos can be registered. The information required for registration i ncludes, but is not limited to, movies, scripts, posters, movie clips, basic information about the film (name, director, production company, rights holder), video, audio, subtitles, etc. Different works require different fees. For example, registration for a movie (completed film) costs RMB 2,000 yuan, for a micro-film (completed film) costs RMB 50 yuan within 15 minutes, RMB 200 yuan outside 15 minutes, and a written certifi cate costs RMB 50 yuan each. Films, TV series, cartoons, documentary films, short videos, web dramas and web movies, screenplays can all be registered for copyright on the FORP website.

The purchase of copyright refers to the transfer or licensing of the copyright of a cinematographic work. A contract of licensing shall include the following main contents: (1) the variety of the right to exploit the work covered by the license; (2) the exclusive or non-exclusive nature of the right to exploit the work covered by the license; (3) the territorial scope and term of the license; (4) the amount of the remuneration and the method of its payment; (5) the breach liability; (6) any other contents that both parties consider necessary. A written contract shall be concluded for the transfer of the rights provided for in subparagraphs (5) to (17), Paragraph 1 of Article 10 of the Copyright Law.The right transfer contract shall include the following contents: (1) the name of the work; (2) the type and geographical scope of the transferred right; (3) the price of the transfer; (4) the date and method of delivery of the transfer price; (5) the liability for breach of contract; (6) other contents that both parties consider necessary to be agreed upon.

In addition to the copyright license contract, the “Contract for Commissioned Works” for film writers also needs to be focused on. The main risk points are listed below: (1) company review. That is, due diligence on film production companies, especially on whether they have or may be eligible for film production and film projection in the future. (2) screenwriter review. This includes the original author of the novel who conducts the adaption on his or her own and a screenwriter hired separately and aims at examining whether he or she is competent to edit and modify the script, and whether he or she infringes on the copyright of others. (3) prevention of ownership disputes. There are many types of disputes over the ownership of films, including film source (such as novels, television, animation, games, etc.), compliance and screenwriters' rights of authorship, portrait, name, etc. (4) prevention of payment disputes. The review shall focus on whether the contract payment terms, payment proportions and time nodes are clearly agreed, especially whether the agreement of the final payment is enforceable. (5) modification of the contract. In the actual filming process, it is necessary to consider that some changes may occur in the actual filming process, such as replacing and adding screenwriters or editing the script. Therefore, it is advisable to make an agreement on how to sign a supplementary agreement. (6) performance disputes. In the event of the “one script for many movies”dispute and the trade secret dispute, the film production company shall defend its rights through legal channels. (7) prevention of disputes over script delivery and acceptance. This includes the dispute over the delivery time of the script, the treatment that the screenwriter is unable to hand in the manuscript on time, and the determination of the quality standards and acceptance standards. (8) other disputes. In addition to the risk points listed above, there may be some problems that may arise during the commissioned creation process, including but not limited to screenwriter infringement (plagiarism), disputes arising from no written contract, and so on.

The legal provisions in each stage of film producing, such as project establishment, commissioned creation, copyright purchase, production, distribution, promotion, and projection, are cumbersome and are constantly being updated, especially now that China continues to introduce policies to favor foreign investment and the degree of freedom of China's investment environment has gradually increased. For example, since December 1, 2019, the establishment of a foreign-invested movie theater in a free trade zone has been further simplified. Whoever has committed to fulfi ll the requirements can be approved on the spot after formal examination. In addition, the examination and approval services for the establishment of offi ces in China by overseas film entities in the free trade zone have been further simplifi ed, and there is no need to provide materials such as the copy of the ID of the chief representative and the representative. Such new policy of the free trade zone is also a pilot of the state policies. It can be seen that China has been optimizing the business environment for foreign investment in China and promoting China-foreign cooperation. As a foreign company intending to come to China, it is recommended to fully understand the regional policies and the free trade zone policies when engaging in the film business, and to take advantage of these policies in conjunction with its own business form.