TYGlobe

MCN agencies (Multi-Channel Networks) claim to help you "incubate projects,"  "grow followers," and "monetize content." However, if cooperation goes awry, you could face minor penalties revenue deductions or severe consequences such as exorbitant breach fees. Building on the previous two articles, this piece highlights the key legal pitfalls throughout the entire process—from signing contracts to fulfilling obligations and terminating agreements—and provides practical strategies for addressing them.

5. Who owns this account? Don't wait until you try operating independently to regret it!

Case Review

Xiao A registered with the company-provided account under his own name and gained 500,000 followers. After leaving the company, he continued using it, prompting the company to file a lawsuit.

Court ruling: The account belongs to the company.

Reason: The company invested funds to operate the account. During Xiao A's employment, he was performing work-related tasks; therefore, in accordance with the principle of fairness, the account shall belong to the company.

Cooperation Guide

✅ When signing the contract, the following must be clearly specified:

l Who is the account registrant (Recommended: Individual registration with authorization for MCN operation);

l Copyright ownership during the cooperation period (Recommendation: Video copyrights belong to you, while MCNs have usage rights).

l How to handle the account after termination (ideal solution: retain the account and have the MCN remove backend permissions).

✅ Practical Recommendations:

l Use your personal phone number and ID card to register the main account.

l If the company insists on using its registered credentials, the contract must explicitly state: "Upon termination of cooperation, MCN shall assist in transferring the account to the streamer's name."

[A Lesson in Blood and Tears]

Fans are what you've built up, but the account may not belong to you—if the contract isn't clear, everything becomes zero.

VI. Important note for virtual streamers: The "person in the middle" may also be held liable!

Case Review

Xiao B, operating as the virtual persona "Zhong Zhi Ren," conducted live streams using this digital identity. After six months, he discontinued broadcasting, prompting the MCN to file a lawsuit demanding compensation of 10,000 yuan.

The court ruled that Xiao B must pay compensation of 4,000 yuan.

Reason: The virtual avatar is closely linked to its voice and performance style; its abrupt exit results in tangible losses.

Cooperation Guide

✅ Assess your "irreplaceability" before signing:

l If your voice, facial expressions, and spontaneous reactions constitute the core appeal of a virtual IP, the cost of terminating the contract will be significantly higher.

l The contract requires distinguishing between a "general-purpose virtual persona" (a replaceable character) and a "customized virtual persona" (bound to a specific streamer).

✅ Methods to reduce risk:

l It is agreed that the contract may be terminated by giving 30 days' notice in advance.

l Limit the maximum penalty amount (e.g., not exceeding three months' service fee);

After termination, the MCN may not continue using your voice or performance characteristics.