Chapter 687: A Man Must Keep His Word

This time anyone with eyes could see that the Principal deliberately reported first, then drove Panda into a dead end.

Other borderline content wasn't allowed to be broadcast, so Panda could only focus on games, and the biggest competitive game publisher was Swan Castle.

This led to Panda Live being unable to broadcast Chang'e Technology's games, and facing bankruptcy.

And this time it wasn't just banning the tournament broadcast rights — all games under Swan Castle were to be banned from Panda.

And the lawsuit was only filed against Panda, not targeting any other live-streaming platform.

And the entire live-streaming industry, as well as game publishers, were all watching this copyright dispute.

They had no choice but to watch — if Swan Castle won, it would rewrite the landscape of game live-streaming; other platforms wanting to broadcast games would all have to pay licensing fees to Swan Castle, and their life and death would be in the other's hands.

They let you broadcast, then you can broadcast; they don't let you broadcast, then you can't.

Including broadcasting other game publishers' games — same thing, they'd also have to pay licensing fees, which was quite an expense for the major live-streaming platforms.

Those big streamers were also panicking, not knowing if broadcasting Swan Castle's games would get them sued too.

But they could do nothing, only wait and see — the struggle between capital was something they couldn't influence at all.

"Two billion, the Principal really dares to open his mouth." Xiao Wang was furious.

How could Panda possibly have that much money? From start to finish it had never raised that much; even going bankrupt they couldn't afford to pay.

The other side wasn't joking this time — they went straight through the litigation process, the court had accepted the case, and all they could do was respond.

"I told you it was best not to let it get to this point." Zhang Juyuan said worriedly.

If they lost, they would be completely at the other's mercy.

"What's there to fear? Who wins and who loses is still undecided." Xiao Wang said.

"It's very hard for us to win this. Games also fall under the category of content — broadcasting someone else's game content constitutes infringement, and there's a blurry line on this. If the other side wins this time, that line becomes clear, and we'll be in a very difficult position then." Zhang Juyuan said.

"Then that's just a monopoly." Xiao Wang said.

Seeing this, Zhang Juyuan stopped trying to persuade him — a rich second-generation's thinking was different from his; he'd never been whipped into shape.

They could only expand entertainment live-streaming, such as showrooms, variety shows, etc., rather than esports content, to compensate for the impending crisis.

Actually Xiao Wang also realized how serious the matter was, but he couldn't back down — was he really supposed to go find the Principal and kneel before him begging for mercy? Impossible.

The lawsuit between the two sides was destined to happen; as long as they won, they could directly shut the other side down.

And Swan Castle had more than just this one move — after all, litigation was a bit slow, so Swan Castle also sent complaint materials to the Copyright Bureau.

These investigations all needed time, and Xiao Wang was certainly feeling the pressure.

At an esports summit, he said during his speech: "The future of the esports industry cannot be controlled by just one or two companies holding all the content. If the top game publishers keep the tournament and broadcast rights in their hands, small and medium platforms won't even have room to survive — how can the industry innovate?"

This was a call for everyone to join him in fighting this copyright monopoly, otherwise everyone would die — but no one responded to his words, because right now no one dared to offend the Principal.

The other side was only banning Panda, and was still very friendly to them — even knowing they were also lambs waiting to be slaughtered, that was still better than being "dead," right!

Even if the iron fist came, paying Swan Castle a licensing fee meant the Principal wouldn't make things difficult for them.

Seeing no one respond, Xiao Wang had to go to the relevant departments himself to advocate, pushing a "non-exclusive licensing" model.

That is, advocating for a neutral third-party institution to manage licensing of game-derived content.

In other words, having the higher-ups set up an association to manage game peripheral copyrights — they would only need to pay a licensing fee to the association.

No need to face the game publishers directly.

Just like with music — for some songs, you pay a certain fee to the music association and you can use them.

No need to find the creators to get authorization.

However, there was no response — the higher-ups weren't interested in games; this thing just had a bit of value, that's all.

This matter wouldn't be that fast, it needed some time. Just as Xiao Wang was actively responding to the possible copyright licensing restrictions, and the entire live-streaming industry was in turmoil because of the Principal's crackdown—

A piece of news exploded globally: Yu Xian held high the Oscar Trophy, and on the Oscar stage once again shouted that line: "Descendants of the Dragon!"

This voice was so powerful that domestic media all reposted the news of his award, along with that line.

"Chinese director wins Academy Award for Best Picture, shouts: Descendants of the Dragon!"

"Birdman wins Academy Award for Best Picture! Chinese director Yu Xian shouts: Descendants of the Dragon!"

"Yu Xian: The first Chinese Oscar Best Film director!"

Such news kept emerging one after another, and domestic media even blew him up as "the Pride of the Chinese!"

Last time they hyped him up the same way, except this time he was the first Chinese person — to this day no Chinese person had won the Best Film Award at the Oscars.

Li An won the Best Director award and was already deified.

Most Wangyi weren't familiar with Yu Xian at all — they had basically never seen this person's films — but his repeated appearances on front pages had made his name thunder in their ears.

Even Beijing Film Academy hung his portrait in the memorial hall for students to pay their respects, taking Yu Xian as a role model — work hard at acting, and become a pillar of society in the future.

"Hey Xiaotong, I heard Senior Yu Xian was brought out by the Principal." Jiang Yiyi and Guan Xiaotong were visiting the memorial hall, pointing at the portrait on the wall — the two were classmates.

"Yes, he's been mixing with the Principal." Guan Xiaotong said.

"Huh! Wasn't he just filming his own movies?" Jiang Yiyi was surprised.

"That's just for show to the outside world. Actually, the company this person belongs to is the Principal's — he's been filming for the Principal all along." Guan Xiaotong knew some inside information.

She was a Beijing-circle princess — when she filmed, even Jiang Wen had to come play supporting role; few people could compare to that, so knowing some information was perfectly normal.

Yu Xian could be said to have become hugely famous, except he was abroad — if he were in China, he would receive endless adulation.

But this didn't stop Yu Xian's status from being elevated infinitely — invitations from many domestic associations, events, lectures, etc. flooded toward Yu Xian like snowflakes, wanting to invite him to appear.

But he was still enjoying his glory in the United States and didn't plan to return to China.

This award also got coverage from overseas media, just not as hyped as domestically.

But this didn't stop Yu Xian's value from skyrocketing — whether attending events or TV interviews, he couldn't be booked for less than a few million US dollars, and his director's fee had also surged to over ten million US dollars; he was truly hot property.

But it still wasn't as easy as filming for Fang Hong, because he had been spoiled by Fang Hong and didn't possess strong creative thinking.

Can you imagine a person who for years on end only needs to follow instructions and film — what kind of creative thinking could they have?

Put it this way — he had no style of his own.

Unless those film investors wrote his script for him and completed all the storyboards, Birdman winning the award is essentially about sentiment—American sentiment.

This film tells the story of a faded actor struggling to reclaim his identity, depicting the ups and downs of filmmakers, resonating deeply with many in the industry.

Ordinary audiences cannot feel it, but those within the industry understand it completely.

The story was provided by Fang Hong, including the storyboards; the cinematography and editing were handled by Yu Xian.

He originally specialized in cinematography; this is his field, so without Fang Hong's creative input, he could not have won this award.

To rise to prominence would be even harder.

Liu Tianxian called Yu Xian specifically to congratulate him: "Congratulations on winning the big award."

"Too bad you weren't here—if you had been, we could have celebrated together." Yu Xian felt regretful, thinking of showing off in front of the Principal.

"It's just inconvenient," Liu Tianxian stroked her belly, which was growing larger and rounder.

"I heard Xiao Wang bullied you, said all sorts of nonsense, right!" Yu Xian had also heard the rumors.

"It's not bullying—he's just a loudmouth, says something to everyone, but it's fine, this guy has quieted down now," Liu Tianxian said.

Of course he's quieted down—Xiao Wang is now actively dealing with Fang Hong's crackdown.

"This guy has never been hit hard—let the Principal go harder on him," Yu Xian was also indignant.

Such rich second-generation kids just need stricter discipline.

At the same time as Yu Xian became a global sensation, Fifty Shades Darker ended its run after one or two months, with North American box office of $114 million.

International box office reached $226.7 million, total box office $381 million, equivalent to roughly 2.667 billion RMB.

This film earned its box office only in the first two weeks; after that, it had almost no earnings—films like this always explode in the first two weeks due to novelty.

Still, this result is quite good—revenue reached $95.25 million, profit around $40 million, with a production cost of $50 million.

But there's also another $10–20 million in licensing fees.

This part was no longer needed, so it was all packaged and given to Yu Xian as his remuneration for acting.

And the $45.25 million profit—roughly three billion RMB—went entirely into Liu Tianxian's pocket; the remaining $50 million will be reinvested.

But Liu Tianxian gave Fang Hong 1.4 billion RMB, or $200 million, as startup funding for the Swan Castle Artificial Intelligence Research Center.

But it's not just them investing—state capital will also join, but state capital must first see Fang Hong's sincerity.

You can't just say a word and expect state capital to join; they must first see whether you truly mean to do this, how much determination you've shown, before they'll say they'll step in and support you.

There's no way around it—mainly because they've been scammed too badly before, like the Han Xin incident!

The Mermaid's release has also entered its final phase, with total box office of 3.391 billion RMB, becoming the second-highest-grossing Chinese-language film in history, with profound influence.

Yutu also kept her promise, advancing Xing Ye 100 million RMB before any returns came in—this sum was stipulated in the contract: over 1 billion RMB in box office, he gets 100 million RMB as profit share.

But Xing Ye seemed unsatisfied—he went to Yutu to meet Fang Hong and demanded additional profit sharing.

"Principal, I'm not here to ask for more—I just think the previous profit-sharing agreement is unreasonable. Shouldn't we renegotiate?" Xing Ye tried.

They sat in the lounge area; Chen Zhixi was also there.

Fang Hong said nothing, only nodded silently.

Chen Zhixi asked at the right moment: "Everything's signed—how is it unreasonable?"

"Look, you gave me 100 million RMB over 1 billion RMB—so over 2 billion, should I get 200 million? Over 3 billion, should I get 300 million? That's how it should logically work," Xing Ye counted on his fingers.

"We agreed originally: over 1 billion RMB, you get 100 million RMB. If it doesn't reach that, we split according to box office. If we lose, we accept it—we did it as friends. We never said we'd add another 100 million RMB for every additional billion."

Chen Zhixi argued firmly again: "You know yourself—you spent 300 million RMB making this film, another few hundred million on promotion—your cost alone was 1.2 billion RMB. And you get 100 million RMB over 1 billion, meaning our cost is over 400 million RMB—we won't break even until 1.5 billion RMB."

"1.5 billion RMB is just breaking even. We offered that condition only because we didn't want you to waste your time making such a long film. We took huge risks—we were gambling. Now we've won, and you come asking for more? It's completely unreasonable!"

These words made Xing Ye feel somewhat ashamed—he had originally expected a box office of around 1.5 billion RMB when he agreed to the deal.

He never imagined it would reach 3 billion RMB—he hadn't even dreamed of it.

Now that they've won the gamble, he comes asking for more—it's truly profit-driven.

"You've already made plenty from this film—100 million RMB in profit share, plus your acting fee," Chen Zhixi said again.

"I put in a lot of effort on The Mermaid—I directed it myself, worked tirelessly on promotion. You made so much—don't I deserve a little more?" Xing Ye appealed to emotion.

"Strange—you directed, you promoted—wasn't that your duty? It's written in the contract," Fang Hong spoke up.

"Yes, that's true—but you made even more. Just box office brought in over 1.1 billion RMB—I'm asking for a little more, isn't that fair?" Xing Ye spread his hands, looking at Fang Hong as if it were obvious.

Fang Hong smiled—he finally understood why Xing Ye always fell out with whoever he collaborated with.

The root is greed: he fell out with Huayi over profit-sharing on Journey to the West: Conquering the Demons; he fell out with Enlighten over profit-sharing on The Mermaid.

Long ago, he alienated nearly all Hong Kong investors—not even the Xiang family's ban could have sealed his fate; the Xiang family didn't have that much influence.

Otherwise, how was Shaolin Soccer made? There was still capital that believed in him.

Wang Jin once exposed that during the making of Shaolin Soccer, he had major conflicts with the financiers.

In short, he falls out with everyone he works with—later, Mermaid 2 stalled, Women's Football kept being delayed, and reportedly The Promise couldn't even raise $60 million.

People like Chen Daren, hated by audiences, still get funding to make films—how could Xing Ye be worse off than him?

Just make anything, he'd still get hundreds of millions in box office—but investors are few and far between.

"Xing Ye, you must keep your word. Whether we profit or lose, we agreed and signed—it's what we're entitled to. Let me say it bluntly—if The Mermaid had made only 1 billion RMB, not 3 billion, would you come here and say, 'I won't take my 100 million RMB—make up for Yutu's losses'? No, you wouldn't."

Fang Hong tapped his fingers on the coffee table, the sound "bang, bang," shaking Xing Ye's nerves.

It was only because the Principal gave him a sense of authority.

Chen Zhixi also wore a cold expression, disliking Xing Ye's attitude—it was agreed upon, and now he wanted to change it.

Before filming, the talks were so pleasant, the cooperation so smooth—but now that the film's out and box office is high, he wants more money? How could that be?

"Whatever was agreed upon, that's what we do. Your demand for more—we won't accept a single bit." Fang Hong left no room for negotiation.

He stood up, unwilling to say more to him.

"Principal, we'll still work together in the future—aren't you being too inflexible?" Xing Ye hinted at a threat—whether he still wanted to collaborate with him.

"If you want to collaborate, we welcome it. If not, we won't force you," Fang Hong said directly.

Chen Zhixi walked off with her, no longer paying him any attention!

This made Xing Ye's pride feel as though it had suffered a tremendous blow, thinking that he could create value worth three billion, that he was somebody.

He never expected that the Principal and Chen Zhixi didn't care about him in the slightest; he had thought too highly of himself — without the Jade Rabbit, the world would still keep turning.

No matter how Xing Ye made a fuss, the agreement had already been signed — what was to be done, what the obligations were, how everything was to be divided, all of it had been signed and sealed.

Fang Hong simply felt this person was a bit off, so he put everything down in black and white, not playing any games with him.

After Xing Ye went back, he told Tianji about the matter.

"The Principal is too heartless — does he still want to cooperate in the future or not?" Tianji looked indignant.

"They said it: cooperate or not, it's up to you." Xing Ye said.

Once it was put that way, there was definitely no way to cooperate.

This left Tianji silent; it really seemed there was no way to do anything to the Principal. He had already offended a whole group of people in Hong Kong, and before that had offended Huayi, and now even the Principal had been offended.

From now on, who would still dare to cooperate with them?

Since the talks couldn't be worked out, Xing Ye could only swallow it — he couldn't even win the lawsuit.

In April, the Copyright Bureau finally made some headway, joining forces with cultural law enforcement to conduct an on-site inspection of Panda, and to mediate between Panda and Swan Castle.

Swan Castle stated: "We refuse mediation!"

Acting so tough, then they could only proceed to the next step — Panda was punished. The fine was a mere slap on the wrist, a maximum of 250,000, equivalent to pocket change for Xiao Wang.

But the order to cease the infringing behavior was the fatal blow.

In an instant, the major streamers on Panda Live were all banned from streaming Swan Castle's games.

(End of chapter)