TYGlobe

MCN agencies (Multi-Channel Networks) claim they can help you "incubate," "grow followers," and "monetize." But when partnerships go wrong, you could face anything from withheld earnings to exorbitant liquidated damages. Continuing from our previous two articles, today we break down the most critical legal pitfalls to watch out for throughout the entire process—contract signing, performance, and termination—along with practical strategies to protect yourself.

V. Who Owns the Account? Don't Regret It When You Go Solo!

Case Review

Xiao A used an account provided by the company, registered under their real name, and built a following of 500,000 fans. After leaving the company, they continued using the account—and the company sued.

Court ruling: The account belongs to the company.

Reasoning: The company invested funds in operations, and Xiao A was performing work duties during employment. Based on the principle of fairness, the account belongs to the company.

Cooperation Guidelines

✅ Must be clearly stipulated when signing the contract:

Who is the registered owner of the account (recommendation: individual registration, with MCN authorized to operate it);

• Copyright ownership of content during the cooperation period (recommendation: you retain video copyright, MCN has usage rights);

• How the account will be handled after contract termination (ideal scenario: you take the account, MCN removes backend access permissions).

  
  

✅ Practical advice:

Register your main account using your own phone number and ID card whenever possible;

If the company insists on registering with its own qualifications, be sure to write in the contract: "Upon termination of cooperation, the MCN shall cooperate in transferring the account ownership to the streamer."

【Hard Lesson Learned】

You're the one who built the fanbase—but the account might not be yours. If the contract doesn't spell it out, everything goes back to zero.

VI. Virtual Streamers Beware: "The Person Behind the Avatar" Can Also Be Held Liable!

Case Review

Xiao B, as "the person behind" a virtual avatar, drove the character's livestreams. After stopping broadcasts six months later, the MCN sued for 10,000 yuan in damages.

Court ruling: Xiao B shall compensate 4,000 yuan.

Reasoning: The virtual avatar was highly bound to Xiao B's voice and performance style. Their sudden departure caused actual losses.

Cooperation Guidelines

✅ Assess your "irreplaceability" before signing:

If your voice, expressions, and improvisational reactions are the core appeal of the virtual IP, the cost of termination will be higher;

Require the contract to distinguish between "generic virtual personas" (replaceable behind-the-scenes talent) and "customized virtual personas" (bound to a specific streamer).

✅ Ways to reduce risk:

Stipulate that "contract can be terminated with 30 days' prior notice";

Cap the liquidated damages (e.g., not exceeding 3 months of service fees);

Clarify that the MCN may not continue using your voice or performance characteristics after contract termination.