WEBTOON, the leading platform for webtoons worldwide with a vast monthly user base, faces criticism from its Originals creators over what many perceive as exploitative and predatory contract terms.

According to a report by The Beat, a Reddit post has garnered attention for exposing what the purported author of a WEBTOON Originals series describes as "extremely predatory" clauses in their contract. Originals, distinct from the free-to-submit Canvas label, entail a different pay and work structure. Allegations include clauses allowing WEBTOON to purchase 100% of the creator's intellectual property (IP) for a relatively low fee. Additionally, despite primarily operating as a digital platform, WEBTOON could unilaterally acquire physical publishing rights. Notably, WEBTOON's parent company, Naver, acquired Wattpad in 2021, releasing numerous webtoons through the Wattpad WEBTOON Book Group. The post alleges that WEBTOON acted as their agent, facilitating the sale of rights such as print and multimedia at discounted rates to partners. While physical publishing rights often command significant sums with external publishers, WEBTOON purportedly could obtain them for as little as $2k. Furthermore, WEBTOON would retain merchandising rights.

In response to these claims, WEBTOON clarified to The Beat that it cannot acquire 100% of an IP but can hold publishing rights for a limited time (up to three years after the series' completion) at industry-standard rates. However, this does not address scenarios where external buyers offer higher sums for these rights. Additionally, WEBTOON acknowledged its ability to purchase merchandising rights, citing the need to streamline merchandising and licensing efforts. While such consolidation may facilitate negotiations, it raises concerns about transparency and potential dilution of creators' royalties.

Despite the option for creators to opt out of certain arrangements, limitations on negotiation windows — only during the series' run and an additional three years post-completion — may tilt the power dynamics in WEBTOON's favor. This raises questions about equity and fairness in creator-platform relationships.

WEBTOON's significance in the comics landscape is undeniable, boasting over 175 million monthly active users as of December 2023. Recent expansions, including partnerships for fantasy webtoon adaptations with Aethon Books and the launch of The Promise, a continuation of Avatar: The Last Airbender, underscore its continued growth and influence.

Source: Reddit via The Beat