▲ This poster of "film Hansan: Rising Dragon" is provided by CJ ENM. (PHOTO NOT FOR SALE) (Yonhap)

 

SEOUL, Feb. 21 (Yonhap) -- After a prolonged legal battle over the director’s cut of the film Hansan: Rising Dragon, the court has ruled in favor of Coupang against Lotte Cultureworks, industry sources said on Friday. 

 

The Seoul Central District Court's Civil Agreement Division 63 ruled in favor of Coupang on Jan. 23 in a lawsuit demanding the return of license fees from Lotte Cultureworks. 

 

The dispute began after Coupang and Lotte Cultureworks signed an exclusive streaming agreement for Hansan: Rising Dragon, which was released in 2022. However, a few months later, Lotte Cultureworks provided the director’s cut, Hansan Redux, to Netflix, leading to a two-year legal dispute.

 

 

▲ This poster provided by Lotte Entertainment promotes "Hansan Redux," the director’s cut of film "Hansan: Rising Dragon." (PHOTO NOT FOR SALE) (Yonhap)

 

Coupang argued that since it had secured exclusive streaming rights for Hansan: Rising Dragon on its OTT platform, Coupang Play, Hansan Redux should not have been released on another streaming service. Lotte Cultureworks, however, contended that Hansan Redux was a separate derivative work.

 

The court ruled that "the director’s cut is merely a reproduction of the original film and cannot be considered a derivative work," stating that "providing the director’s cut to Netflix violated the obligation to grant and uphold the plaintiff’s exclusive streaming rights."

 

As a result, Lotte Cultureworks was ordered to pay Coupang KRW 5 billion and additional interest at an annual rate of 12% from February 10, 2023, until the full amount is paid. The counterclaim filed by Lotte Cultureworks was dismissed.

 

The exclusive licensing agreement for Hansan: Rising Dragon on Coupang Play had garnered industry attention from the beginning. As the second installment in director Kim Han-min’s Yi Sun-sin trilogy, the film was licensed to Coupang Play for KRW 12.5 billion (excluding VAT), marking a significant move for the emerging OTT platform.

 

However, prior to this, Netflix had signed a separate agreement with Lotte Cultureworks in 2020, granting exclusive domestic subscription-based VOD rights for films that had attracted more than 300,000 viewers.

Both parties claimed exclusive streaming rights over Hansan, leading Lotte Cultureworks to negotiate a deal with Netflix for the director’s cut.

 

Lotte Cultureworks maintained that the director’s cut was a separate derivative work, distinct from Hansan: Rising Dragon. They argued that Hansan Redux included additional naval battle and expedition scenes, extending the narrative by approximately 21 minutes to enhance the dramatic depth beyond a simple action film.

 

On Feb. 18, Lotte Cultureworks filed an appeal against the ruling.

 

A representative from Lotte Cultureworks stated, "Hansan Redux is a distinct work newly created by the director with a fresh creative vision, making it a separate derivative work from Hansan: Rising Dragon." The company disagreed with the court's decision that the director’s cut was merely a reproduction of the original film.

 

They also revealed plans to seek expert evaluation regarding the director’s cut’s status as a derivative work.

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