In recent years, film and television culture has developed vigorously, and some film and television works have created high box office returns, attracting more and more individuals to enter the field of film and television investment. Can high investment yield the expected high returns? Is the seemingly professional and superb film and television company safe and reliable? The People's Court of Fangshan District, Beijing, concluded a case in which a film producer falsely claimed to attract investment. The court ruled to revoke the contract and return the investment amount of 450,000 yuan.
[Case Replay]
Mr. Li had some idle funds. After learning that investing in the film and television industry was very profitable, he wanted to invest in film projects. After being introduced by an intermediary, he signed an investment agreement with a film and television company on a film project. A film and television company stated that they are a film investment producer and have domestic and foreign copyrights, copyright extensions and renewals, as well as advertising, publicity, distribution and other rights.
Li made a one-time investment of 450,000 yuan, accounting for 0.3% of the total film project. After the film is released, he will enjoy the income rights in proportion to the investment. Movies released after
were released in the country. At the time of release, there was no information about a certain film and television company in the information such as the chief producer, co-producer, producer, and co-producer of the film's opening and closing credits.
Li believed that the company was not a film investor and producer, nor had it obtained the film copyright, and that its behavior constituted fraud. He sued the company in court, requesting the cancellation of the contract and the return of the 450,000 yuan investment.
A certain film and television company argued that the company obtained part of the investment share from the producer of the film involved and was also one of the film’s investors. Although it is not the producer, the film involved has been released to the public and will be distributed dividends, which will not affect the realization of the purpose of the contract. Li requested to cancel the contract due to investment losses and was not defrauded.
[Court Hearing]
After hearing, the court held that the focus of the dispute in this case was whether there was fraud in signing a cooperation investment agreement between Li and a certain film and television company. The copyright of film and television works belongs to the producer. In the absence of relevant information about a certain film and television company from the film producer or place of production, it is not enough to prove that they own the copyright of the film involved. The joint investment and production cooperation agreement signed between a film and television company and a company not involved in the case can only prove that a film and television company can enjoy the distribution income rights based on 10% of the investment share, but it cannot prove that it actually participated in the production of the film and is an investment producer. Whether
is a film investor and producer and whether it owns the film copyright are important matters in investment. The judgment of this matter is enough to affect the investor's investment intention. The content recorded in the contract of a certain film and television company was inconsistent with the true situation, and a fraud was committed to deliberately conceal the true situation. The contract involved should be revoked, and the film and television company should return Li's investment of 450,000 yuan.
A certain film and television company appealed against the first-instance judgment, but the second-instance appeal was rejected and the original judgment was upheld.
[Judge’s Tip]
Article 148 of the Civil Code of the People’s Republic of China stipulates that if one party uses fraudulent means to cause the other party to perform a civil legal act contrary to its true intention, the party who has been defrauded has the right to request the People’s Court or an arbitration institution to Undo.
In this case, the film and television company with only partial investment income rights packaged itself as an investment producer and copyright holder, which led Li to mistakenly believe that it had signed an investment contract directly with the producer, leading to a misunderstanding of the qualifications and capabilities of the transaction partner. His behavior constituted fraud, and Li had the right to revoke the contract. While
film and television culture is booming, related disputes are also at a high rate. Some films died prematurely or suffered investment losses due to irregular production and distribution, inadequate management of investment funds, and insufficient response to market changes. This led to disputes over contract performance such as the termination of investment contracts and the amount of income distribution between investors and financing parties. Some criminals even falsely claimed that they were interested in popular films. Enjoy income rights, sell false income shares or package film and television works into financial products, illegally absorb public deposits, and trigger criminal offenses.
Ordinary investors should increase their awareness of investment risks, check the project filing, public screening license, distribution and business license and other information through official websites such as the National Film Administration to verify the authenticity of film and television projects. For some film and television investment projects learned through WeChat, Internet crowdfunding and other channels, attention should be paid to screening the identity of the other party and preventing cooperation with shell film and television companies. When signing an investment contract, clarify the circumstances of breach of contract and exemption, and detail the settlement time and method of investment income.During the production and distribution stage of film and television works, follow up the progress in a timely manner. If the film and television company touches the terms of termination and breach of contract, it must promptly protect its rights through mediation or litigation.
Film and television practitioners should truthfully and comprehensively disclose film and television project information, fully inform and remind investors of the contract terms involving the core rights and obligations of both parties, and promptly disclose the corporate information of the third-party financing company if there is a situation where third-party financing is entrusted. During the production and development stage of film and television projects, the progress of the project shall be disclosed to investors in a timely manner. If the release is indeed delayed due to force majeure, an explanation shall be provided to investors in a timely manner.
Text/Zhang Xiaoting (Beijing Fangshan District People’s Court)
(Source: Beijing Youth Daily)
