Copyright Act | Analysis of a High Court Judgment Holding That the Right to Use a Screenplay Belongs to the Writer, Not the Drama Production Company, Upon Expiration of the Contract

🔗Copyright Act In this case, the plaintiff was Company A, a drama production company, and the defendant was B, a screenwriter who had been commissioned by Company A to write a broadcast screenplay and had entered into a use agreement.

Through this agreement, Company A paid B writing fees and other amounts, and B delivered the drama proposal and screenplay by the time the use agreement ended.

By the time the contract ended, however, the drama's casting and programming had not been confirmed.

B accordingly sent Company A a certified-content letter to the effect that the contract had terminated upon expiration of its term.

Company A then argued that the right to use the screenplay belonged to the production company and filed a lawsuit seeking confirmation of the right to use the screenplay.

Company A argued that it held the right to produce the drama and to sell and distribute it, while B countered that this constituted copyright infringement.

The court of first instance, which heard this Copyright Act case, held that Company A, the drama production company, had no right to use the screenplay written by the writer B to produce a drama, and dismissed Company A's claim for confirmation of its right to use the screenplay .

The court of first instance determined that the right to use the screenplay had been extinguished as of the time the use agreement ended.

The court explained that the right to produce the drama was not an unlimited right but a right subject to the limitation of a valid term, and that Company A's right was recognized only where the drama was produced within the valid term.

Examining the contract that Company A entered into with B in detail, the court found that Company A's rights covered only the domestic and international sales rights and distribution rights for the drama produced based on the screenplay written by B. The contract also expressly provided that "if Company A wishes to create a derivative work using that screenplay as the original work, it must obtain B's prior permission, and if a drama is broadcast based on that screenplay, a work-use royalty shall be paid to B."

Because the contract was therefore intended for B to write the screenplay and for Company A to use that screenplay to produce a drama, the court ruled that the rights to the screenplay written by B belonged to B.

The High Court, which heard the appeal, likewise dismissed Company A's appeal and ruled in B's favor.

The appellate court determined that a work made in the course of employment under Article 2, subparagraph 31 of the Copyright Act must be a work created in the course of duties by a person engaged in the business of a corporation, organization, or the like, and found that B was not a person engaged in the business of Company A, thereby upholding the judgment of the court below.

We have analyzed a High Court judgment holding that, where the contract with a writer who entered into a screenplay-writing and use agreement under the Copyright Act has expired, the right to use the screenplay belongs to the writer, and dismissing the claim of the drama production company asserting that right.

As technological advances diversify the forms that works take, interest in the protection of copyright and the fair use of works continues to grow.

Legal disputes in this area can be complex and difficult, so obtaining the assistance of an attorney experienced in these matters may be a prudent course.

The 🔗Intellectual Property Group of Daeryun Law Firm LLP brings together attorneys experienced in intellectual property law as well as attorneys handling criminal, civil, damages, and administrative matters, so that a team across multiple fields collaborates to protect clients' rights and interests.

If you need assistance with a related matter, you are welcome to contact Daeryun Law Firm LLP at any time.