CONTENTS
- 1. Content IP | Concept
- - Significance of Content IP Management
- - Types of Content IP
- 2. Content IP | Types of Legal Protection
- - Clauses That Must Be Specified in Content IP Use Agreements
- 3. Content IP | Types of Corporate Legal Risks
- - Practical Checklist for Commercializing Content IP
1. Content IP | Concept
Content IP (Intellectual Property) is a concept that encompasses the legal rights in creative content, such as games, films, webtoons, music, characters, and broadcast programs, and all the property value generated through it.
It is a concept that covers not merely the content itself but also its protection under various laws, such as trademark, copyright, design right, patent right, and character right, including the rights of use, licensing, and merchandising.
As the content industry has grown into a high-value-added market, the value of content IP and its legal protection have become very important.
Significance of Content IP Management
A company generates brand value, market share, and merchandising revenue through content IP.
If content IP is not secured and converted into rights ahead of others, the content may be used by competitors without authorization or a rights dispute may arise, which can lead to serious risks such as business interruption and damages.
In particular, characters, webtoon IP, and game IP are core assets for global business expansion, secondary works, and licensing business, so thorough securing and management of rights is crucial.
Types of Content IP
Category | Main content types | Main commercialization examples |
|---|---|---|
Copyright content IP | Literature, music, video, comics, games | Dramas, OST, webtoons |
Character IP | Animation, games, character products, emoticons | Character goods, theme parks |
Game IP | Titles, characters, worldview, OST | Games, goods, video adaptation |
Video content IP | Dramas, films, advertising, OTT | Global streaming, goods |
Webtoon and web novel IP | Webtoons, web novels | Drama adaptation, game adaptation |
OST and music source IP | OST, game music, albums | OST concerts, remakes |
NFT content IP | NFT images, videos, items, characters | Fandom NFTs, digital goods |
Theme park and exhibition IP | Experiential content, space operation | Pop-up stores, theme parks |
2. Content IP | Types of Legal Protection
Content IP brings a significant ripple effect not only to the content industry but also to various related industries.
As securing content IP becomes more important for domestic companies, the process of reviewing the related systems is also becoming more important.
As competition among media platforms intensifies, the importance of securing content IP, which enables the linkage and expansion of content, is increasing, and a process of actively securing it is needed.
The subjects and substance of the legal protection of content IP are as follows.
Category | Main Laws | Subjects and Substance of Protection |
|---|---|---|
Copyright | Copyright Act | Creative content (games, webtoons, video, music, etc.) |
Trademark right | Trademark Act | Content names, logos, character names, etc. |
Design right | Design Protection Act | Content character and product designs |
Patent right | Patent Act | Content service technology, game systems |
Unfair competition | Unfair Competition Prevention and Trade Secret Protection Act | Another person’s content names and imitation content |
Clauses That Must Be Specified in Content IP Use Agreements
In a content IP agreement, each individual provision is an important device that prevents disputes and secures the stability of the business.
In particular, content IP involves various stakeholders such as original authors, investors, distributors, and overseas licensors, so failing to clearly define the following matters in advance can lead directly to legal disputes or business losses.
1. Scope and Purpose of the License
This is a provision that specifies in detail the types of content for which the content IP may be used, the applicable media, permitted countries, permitted period, and the like.
If the scope of IP use is set out unclearly in the agreement, the licensee (user) risks using the content for a broader purpose than the original IP, and the licensor (rights holder) may lose revenue share and control over the content.
▶Risk Prevention Measures
Distinguish availability of use by country
Separately specify whether the right to produce secondary content is permitted
2. Right to Use Derivative Works
This is the right to produce and distribute secondary content based on the original content, such as character merchandise, web dramas, films, games, OSTs, and NFTs.
Because the commercialization of derivative works is central to determining the profitability of the IP, whether to permit it under the agreement and to what extent must be established.
▶Risk Prevention Measures
Set conditions to prevent unauthorized production and to require prior approval
Clarify the criteria for sharing secondary revenue
3. Term and Termination Conditions
This is a provision that sets the term of validity of the agreement, the grounds for early termination, and the obligations regarding the attribution of rights and the prohibition of content use after termination.
Because the content IP business and follow-on revenue depend on whether the agreement is terminated, the grounds for termination and the effects of termination must be clearly defined to prevent unnecessary disputes.
▶Risk Prevention Measures
Specify provisions on the obligation to immediately recover content and cease its use upon termination
Set in advance how derivative works will be handled upon termination
4. Revenue Sharing Method
This is a provision that determines how royalties, fixed use fees, revenue-linked license fees, and the like on the sales generated from use of the content IP are divided.
If the revenue sharing ratio, calculation method, and payment schedule are ambiguous, settlement disputes are likely to arise even when business profit is generated.
▶Risk Prevention Measures
Specify the settlement cycle (monthly/quarterly/semiannual) and the payment date
Add provisions for the right to inspect sales records and the right to audit
5. Attribution of IP Ownership
This is a provision that determines the entity to which the original copyright in the content, the rights in secondary content, the rights in joint works, and the like arising after the agreement is concluded belong.
If IP attribution is unclear, disputes over attribution rights can arise in licensing, secondary commercialization, and overseas export of the content, creating risks of business disruption and damages.
▶Risk Prevention Measures
Set in advance the rights ratio and scope of use when a joint work arises
Agree in advance on how rights will be handled upon business closure or termination
3. Content IP | Types of Corporate Legal Risks
A company may face the following risks related to content IP.
▶Copyright infringement: unauthorized use of characters, video, music, or game UI
▶Trademark right infringement: use of content names or character names similar to another company's IP
▶Contract interpretation disputes: disputes over revenue sharing and the attribution of rights in secondary content
▶Issues of IP attribution in joint production: conflicts over the attribution of rights in jointly developed content
▶Overseas IP license disputes: omitted royalties or use beyond the scope of the contract
▶Controversies over NFT and metaverse content IP: copyright conflicts in content converted into virtual assets
For a company, preventing risk through prior rights investigation and detailed review of contract clauses is important.
If legal assistance related to content IP is needed, consulting an intellectual property attorney at the firm to prepare a response strategy may be advisable.
Practical Checklist for Commercializing Content IP
Checklist Item | Points to Review |
|---|---|
Holding of IP Rights | Whether copyright, trademark rights, and design rights are registered |
Scope of Rights | Domestic and overseas registration, trademark classes, service classes |
Similarity Search Against Other IP | Whether there is any conflict with previously registered IP |
Conclusion of License Agreement | Whether the use, term, and revenue allocation are clear |
Rights to Secondary Content | Attribution of rights to character merchandise, film adaptation, and game adaptation |
Conditions for Contract Termination | Provisions on breach of contract, damages, and the effects of termination |
Management of Joint Works | Rights ratio, revenue allocation, restrictions on assignment of rights |
NFT/Metaverse Rights | Attribution of rights to virtual content and clear statement of copyright |
Response to Imitation Content | Cease-and-desist letters and criminal or civil measures upon infringement of rights |
IP Protection for Overseas Business | Registration of trademarks and copyright in each country and preparation of contracts |
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