Hotspot · Analysis

Zheng was sentenced to 60 million yuan in compensation for not being able to air his participation in a TV drama

On September 26th, the People's Court of Songjiang District, Shanghai released the "White Paper on the Trial of Service Guarantee for the High Quality Development of Shanghai Science and Technology Film Metropolis in the G60 Science and Technology Innovation Corridor of the Yangtze River Delta (2021-2023)" and ten typical cases. Case 5 is the "Service Contract Dispute between Haining D Film and Television Investment Co., Ltd. and Zheng".

In this case, Shanghai Z Film and Television Culture Studio (Zheng, Party B) explicitly stipulated in the supplementary contract to the film and television service contract with Haining D Film and Television Investment Co., Ltd, If the production and release of this drama are affected by the lockdown of the State Administration of Press and Publication or the State Administration of Radio, Film and Television, Party A has the right to terminate this contract, and Party B shall refund the remuneration already paid by Party A and compensate Party A for the actual economic losses suffered by Party A up to that time.

After the production and filming of the TV drama involved in the case were completed and a distribution license had not yet been applied for, Zheng was "banned" due to his misconduct. According to relevant notices from the State Administration of Radio, Film and Television, the TV drama starring Zheng as the main creator could no longer be released. Haining D Film and Television Investment Co., Ltd. filed a lawsuit with the People's Court of Songjiang District, Shanghai. On December 16, 2021, the People's Court of Songjiang District, Shanghai ruled that Zheng would refund Haining D Film and Television Investment Co., Ltd. a service fee of 30.5 million yuan and compensate for economic losses of 60 million yuan. Zheng filed an appeal, and the Shanghai First Intermediate People's Court made a second instance judgment on July 18, 2023: rejecting the appeal and upholding the original judgment. At present, the judgment has taken legal effect.

The court believes that in the film and television service contract, the investor and the film and television production company agree that if the main creative star engages in illegal and criminal activities, resulting in the inability to release and play the film and television work, the film and television investment company has the right to terminate the contract, refund the service fee, and demand compensation for actual economic losses. This agreement belongs to the scope of mutual autonomy and does not violate legal provisions, and is a valid agreement. If the main creative star violates the above agreement and causes the film and television works to be unable to be played and released, they shall bear corresponding responsibilities. The performance period of the above-mentioned negative inaction obligations of film and television stars shall be determined according to the reasonable period after the release and broadcast of the film and television works or by referring to the copyright protection period of the film and television drama.

Radio, film and television works are important carriers for disseminating advanced culture and promoting correct values. As public figures, creators of radio, film and television programs may impose necessary restrictions on the broadcasting of relevant film and television works and programs due to their illegal behavior, in order to reduce their negative social impact. The results of this case have certain reference value for the handling of film and television contracts related to radio, film and television works produced by similar artists. It is recommended that all parties clearly stipulate in the film and television contracts the legal consequences and responsibilities that may affect the filming and release of the involved film and television drama due to the involvement of relevant artists in illegal activities.

In addition, this case also plays a promoting role in urging public figures to abide by laws and regulations, disseminating positive social energy through excellent works and good social images, and guiding minors to establish correct worldviews, outlooks on life, and values.

Industry · New Deal

Notice on Issuing the Standardization Management Measures for Radio, Television and Network Audiovisual Services

On September 5th, the website of the State Administration of Radio and Television released a notice on the issuance of the "Management Measures for Standardization of Radio, Television and Network Audiovisual".

In order to deeply implement the National Standardization Development Outline and further play the fundamental and leading role of standardization in promoting the modernization of industry governance system and governance capacity, the State Administration of Radio, Film and Television has organized the revision of the "Management Measures for Standardization of Radio, Television and Network Audiovisual", which consists of seven chapters and forty-three articles, stipulating standardization management, construction of standard systems, establishment of standard projects, and formulation of standards The implementation and supervision of standards, rewards and punishments, and other aspects are encouraged to encourage relevant units in the fields of broadcasting, television, and online audiovisual to establish a technology, standard, and patent linkage innovation system, synchronously promote scientific and technological research and development, improve the timeliness of the transformation of scientific and technological achievements to national and industry standards, strengthen intellectual property protection in the process of standard formulation, and promote the industrial application of innovative achievements.

Notice on Further Strengthening the Standardized Management of Large Commercial Performance Activities and Promoting the Healthy and Orderly Development of the Performance Market

On September 13th, the Ministry of Culture and Tourism and the Ministry of Public Security issued a notice on further strengthening the standardized management of large-scale commercial performance activities to promote the healthy and orderly development of the performance market.

The "Notice" applies to large-scale commercial performance activities with an audience of more than 5000 people. It specifies that large-scale performance activities implement a real name ticket purchase and real name admission system (i.e. "strong real name system"). Each ID card for each performance can only purchase one ticket, and the identity information of the ticket buyer and the admission person should be consistent; The performance organizer shall establish a ticket refund mechanism for large-scale performance activities and set reasonable tiered ticket refund fee standards; The number of tickets publicly sold by the performance organizer to the market shall not be less than 85% of the approved audience.

Announcement on Continuing the Implementation of Preferential Policies for Promoting Cultural Value Added Tax

On September 22, the Ministry of Finance and the State Administration of Taxation issued Announcement No. 60 of 2023 on the Continuation of the Implementation of Cultural Value Added Tax Preferential Policies.

The announcement clearly states that the policy of 50% or 100% value-added tax collection and refund will be implemented in the publishing process for regulated publications; Implement a policy of 100% pre tax and post tax refund for the specified printing and production businesses; Exemption from value-added tax on book wholesale and retail links, as well as exemption from value-added tax on ticket income from science popularization activities carried out by science popularization units, county-level and above party and government departments, and science associations. Relevant policies will be implemented until December 31, 2027.

Announcement on Continuing the Implementation of the Value Added Tax Policy to Support the Development of Cultural Enterprises

On September 22, the Ministry of Finance and the State Administration of Taxation issued Announcement No. 61 of 2023 on the Continuation of the Implementation of Value Added Tax Policies to Support the Development of Cultural Enterprises.

The announcement clearly states that the sales of film copies, transfer of film copyrights, film distribution income, and film screening income obtained by film group companies, film studios, and other film enterprises approved by the film regulatory authorities to engage in film production, distribution, and screening in rural areas shall be exempt from value-added tax. For urban film screening services provided by general taxpayers, they can choose to calculate and pay value-added tax according to the simplified tax calculation method in accordance with current policies and regulations. The basic viewing maintenance fees for cable digital television and basic viewing fees for rural cable television collected by broadcasting and television operation service enterprises are exempt from value-added tax. Relevant policies will be implemented until December 31, 2027.