On April 23, Shanghai Film and Television Media released a group announcement announcing that it was officially preparing to shoot the film and television drama "An Le Zhuan" (tentative name), which was adapted from the popular IP "Emperor's Book". As soon as this group of news was released, it caused a heated discussion among loyal readers of the original novel "The Book of the Emperor" and fans from all walks of life, including the proposed creators (screenwriter, director, producer, female, male, and female) of "An Le Zhuan". Once upon a time, the term IP swept the film and television industry, becoming a focus topic for many film and television practitioners. A large number of successful IP adaptation film and television programs have emerged in the industry, such as "Legend of Zhen Huan", "Langya Bang", "Flower Thousand Bones" a few years ago, "Celebrating the Year of the Past", "Do You Know Whether You Should Be Rich, Red, and Thin", "Chen Qing Ling", and so on. They have harvested a large number of fans of the original works, and have also received unanimous praise from the audience. So, what exactly does IP mean? What issues should we pay attention to when licensing IP adapted film and television works?

 

"IP" is the abbreviation for "intellectual property" in English, which originally means "intellectual property ownership" or "intellectual property ownership". It refers to the exclusive rights that people enjoy in accordance with the law with respect to their intellectual labor achievements, usually the exclusive rights or exclusive rights granted by the state to the creators of their intellectual achievements for a fixed period of time. In China, it is commonly translated as intellectual property rights, mainly including patent rights, trademark rights, copyrights, names of origin, new varieties of plants, and trade secrets.

 

The IP of the film and television industry has given it a new meaning, specifically literary IP, which refers to high-quality content copyright based on textual content, with a certain value base, and the ability to develop in multiple forms beyond media platforms, including film and television, games, animation, and peripheral derivatives. It should be noted that not all literary works are IP, and only high-quality literary works with development value are IP. Film and television companies evaluate whether a literary work is suitable for development with a set of industry-wide evaluation dimensions, mainly including the plot, character image, fan effect, potential audience, feasibility of legal authorization, development cycle and depth, etc. The IP with high evaluation scores is a big IP, a hot IP, and also a target for various film and television companies.

 

With the increasing popularity of IP development and the rise of IP, the issue of authorization between IP holders and IP developers is also a matter of fierce competition. On the one hand, IP owners (referred to as IP copyright owners) want to more carefully utilize each element and right of the work to maximize benefits, and on the other hand, IP developers (referred to in this article as film and television companies) want to obtain licenses with longer adaptation periods and more complete development forms. This article mainly discusses the types and ways in which film and television companies need to obtain authorization when adapting film and television works over IP.

 

1、 IP buyout

 

IP buyout is an IP acquisition method that maximizes the rights of a film and television company. It means that the original IP copyright owner signs a copyright transfer contract with the film and television company. The IP copyright owner transfers all property rights in the copyright of a literary work to the film and television company as a whole and permanently. The author of a literary IP only enjoys personal rights such as the right of publication, the right of authorship, the right of modification, and the right to protect the integrity of the work. After obtaining a literary IP, a film and television company can independently or authorize others to develop film and television, stage plays, games, animation, peripheral derivatives, and so on in any manner, anytime, and anywhere.

 

Due to the large number of transfer rights, no time limit, no geographical restrictions, the corresponding licensing fees for IP buyout are also high. As a film and television company solely developing film and television works, considering the cost of buyout and the timeliness of market value, this approach is rarely adopted.

 

2、 IP Licensing

 

IP licensing is a common practice for film and television companies to obtain IP rights. The original copyright owner of IP signs a copyright licensing contract with the film and television company, and the film and television company obtains adaptation rights, filming rights, and other related rights that may need to be obtained within a certain period of time and within a certain range. The original IP copyright owner and the film and television company generally consult on the following aspects.

 

1. Development form of IP authorization

 

According to the current Copyright Law, copyright includes personal rights such as the right of publication, the right of authorship, and the right to protect the integrity of a work, as well as property rights such as the right of reproduction, distribution, rental, exhibition, performance, screening, broadcasting, information network dissemination, filming, adaptation, translation, and compilation. IP adaptation of film and television works mainly involves obtaining IP adaptation rights (that is, the right to change the works and create innovative new works) and the right to shoot (that is, the right to fix the works on the carrier by shooting films or similar methods).

 

From the perspective of film and television companies, in order to ensure the comprehensive development and utilization of film and television works, film and television companies often try to obtain all the adaptation rights and production rights of IP in film and television dramas, radio dramas, stage dramas, and derivative development. However, in order to improve the development value of IP, the copyright owner of IP will further divide the adaptation rights and the filming rights and transfer them to different people. For example, the original copyright owner of IP can grant IP's television drama adaptation rights, film adaptation rights, online drama adaptation rights, and online movie adaptation rights to four film and television companies, and can also transfer IP's mobile game adaptation rights and online game adaptation rights to two game development companies, as well as IP's stage drama adaptation rights and radio drama adaptation rights to two performing arts companies.

 

2. Duration of IP authorization

 

The IP license period is also a key issue discussed between the original IP copyright owner and the film and television company. The film and television company certainly hopes that the longer the license period is, the better. The film and television company can arrange the shooting time and release time of the IP adapted film and television series based on its own economic status and development situation. However, the original IP copyright owner hopes that the shorter the licensing period, the better, can maintain the popularity of IP and obtain the possibility of diverse development works. And generally, the longer the authorization period, the higher the authorization fee. Therefore, film and television companies generally determine an appropriate authorization period based on the time required for film and television drama project approval, script adaptation, group shooting, post production, and publicity and distribution.

 

After the authorization period is determined, both parties will generally make specific agreements and constraints on the completion of the film and television works before the expiration of the authorization period. There are generally the following situations in the industry:

 

"Before the expiration of the authorization period, the film and television company must complete all filming and production of the film and television series. After the expiration of the authorization period, the film and television company can continue to promote, distribute, and broadcast the film and television works, regardless of the authorization period.".

 

Before the expiration of the authorization period, the film and television drama must be completed and shut down. After the expiration of the authorization period, the film and television company can continue the post production, promotion, distribution, and broadcast of the film and television work, without being limited by the authorization period.

 

Third, before the expiration of the license period, the movie and television drama needs to be officially started. After the expiration of the license period, the film and television company can continue to shoot, post produce, promote, distribute, and broadcast the movie and television work, without being limited by the license period.

 

Of course, the third arrangement is the most advantageous for film and television companies. Some film and television companies have been delayed in starting filming due to repeated revisions to the script, delays in scheduling the main creators, and delays in making investment funds available on time. As soon as the authorization period expired, they hurriedly arranged a startup ceremony without the establishment of the production team, claiming that the film and television series had already started, and then slowly arranged for filming. However, the original IP copyright owner generally does not agree to adopt the third agreement, or even if the third agreement is adopted, an extension period will also be agreed. It is agreed that the film and television company should start up within the authorization period and complete the shooting and production of the film and television works (or kill and shut down) within the extension period, otherwise the film and television company cannot continue to develop the film and television project after the expiration of the period.

 

3. The geographical scope of IP authorization

 

The issue of the geographical scope of IP authorization is relatively simple, and both parties can reach an agreement. Generally, there are agreements on "global scope", "Chinese Mainland (excluding Hong Kong, Macao and Taiwan)", "China (including Hong Kong, Macao and Taiwan)", etc.

 

4. Type of IP authorization

 

China's copyright law does not clearly stipulate the types of copyright authorization, but in the film and television industry, everyone is divided into the following three types according to industry practices.

 

First, exclusive license. The authorized film and television company uses the IP license exclusively within the authorized period and scope. The original IP copyright owner shall not grant the IP license agreed by both parties to a third party other than the authorized film and television company. Without the consent of the authorized film and television company, no party, including the original IP copyright owner, shall exercise the IP license.

 

Second, exclusive license: The authorized film and television company uses the IP license in an exclusive manner within the authorization period and scope. The original IP copyright owner may not grant the IP license agreed upon by both parties to a third party other than the authorized film and television company, but the original IP copyright owner may use the IP license himself.

 

Third, non-exclusive license, also known as ordinary license, refers to the authorized film and television company using IP license in a non-exclusive and non-exclusive manner within the license period and scope. The original IP copyright owner has the right to exercise the IP license on his own or authorize other third parties to exercise the IP license.

 

Generally speaking, in order to ensure the market value of developed film and television works, avoid disputes, and avoid competition, most film and television companies require the first type of IP authorization. Because the classification of the above three types of IP authorization is not explicitly stipulated by laws and regulations, both parties will also specify the specific meaning of the authorization type in detail in the contract.

 

5. IP derivative development authorization

 

IP derivative development is a newly emerging film and television drama development model. Film and television derivatives mainly refer to products or services that can be sold through development and design based on film and television elements such as characters, storylines, scenes, props, and logos in film and television works. Derivatives generally include two categories: derivative products and derivative services, such as audio-visual products, toys, jewelry, clothing, models, various derivative products including works related elements such as clothing, food, housing, and transportation, as well as derivative services such as theme parks, exhibition halls, restaurants, cafes, and recreational facilities. The development and dissemination of derivatives can greatly enhance the influence and attention of film and television works, extend the cultural industry chain, and create economic benefits. Therefore, when a film and television company obtains an IP license, it will also obtain a derivative development license. Both parties need to negotiate specific projects to be included in the derivative, and clearly agree in the contract. If there is no clear agreement on the project, the film and television company has no right to develop it.

 

6. IP Licensing Reserved Rights

 

In general, the original IP copyright owner will also explicitly stipulate in the license contract the rights it retains, mainly in the following aspects:

 

First of all, screenplays and film and television works produced under IP authorization must be signed by the original copyright owner of the IP. Generally, the signature is marked as "adapted from the work of a certain author," or "the original work of a certain author.".

 

Secondly, IP adapted film and television works must not infringe upon the copyright owner's right to protect the integrity of the work, and protect IP works from distortion and tampering.

 

In addition, the original IP copyright owner and the film and television company may agree on relevant promotional terms. The film and television company has the right to use the name, portrait, and experience of the original IP copyright owner to promote the adapted film and television work. The original IP copyright owner can also use certain materials of the adapted film and television work to promote the original IP copyright owner and the original literary work, etc.

 

As stated in the "2019-2020 Evaluation Report on the Adaptation Potential of Online Literature IP Film and Television Dramas" released earlier this year by the Writers' Education Working Committee of the China Film Association and the China Film Writers' Research Institute of the Beijing Film Academy, successful literary IP adaptation of film and television works not only meets the audience's expectations for literary IP from flat text to three-dimensional images, but also promotes the expansion and accumulation of users' emotions about IP, achieving IP value-added. Currently, there are still many high-quality literary IPs that have not yet been adapted or are undergoing film and television adaptation. I believe that there will be more and better literary IPs adapted from film and television dramas in the future.

 

(This article is translated by software translator for reference only.)