ZUN Puts White Canvas' Right to Sell Touhou merchandise on Hold

[Excelsus]

http://www.animenewsnetwork.com/interest/2011-12-20/touhou-project-creator-puts-site-right-to-sell-work-on-hold

ZUN: White Canvas made, sold items without payment or permission

"Team Shanghai Alice," the creator of the Touhou Project dōjin game series, announced on Tuesday that he temporarily pulled the White Canvas website's right to sell goods related to his works. The creator (who is also known as ZUN) had just announced at August's Comic Market 80 event that he allowed White Canvas to sell the franchise's 13th official game, Touhou Shinreibyou ~Ten Desires —, starting in September.

The dōjinshi game maker Twilight Frontier (Tasogare Frontier) told ZUN that White Canvas was not paying for its consignment sales. In addition, ZUN said that he confirmed that White Canvas was producing character goods without obtaining permission from him.

More information at the link.

[Kilgamayan]

(On phone, so can't really format OP post. If another staffer would like to, feel free.)

I suspect this is likely just White Canvas having a brain fart rather than actually trying anything malicious.

[Drake]

I suspect this is likely just White Canvas having a brain fart rather than actually trying anything malicious.

That's basically what it is.

What's more though, is that the english news sources are just once again putting a complete asshole spin on the deal, making it sound as if he's throwing down some unfair dictatorial law. They'll probably go back to selling his stuff again if they cough up and stop derping around.

[N-Forza]

Actually, it's just official Touhou stuff, meaning anything made by Team Shangai Alice. He said they can still sell Touhou fanworks, but he advises other circles to exercise discretion.

And another thing, this is NOT a brain fart. White Canvas has something of a bad reputation among circles, citing unprofessional behavior, including withholding consignment proceeds for an indefinite amount of time. I had a friend who had a similar problem, and they willfully held that money and more or less said "What are you doing to do about it?" He got the money eventually but it was like pulling teeth. I guess they finally got a big enough head to try to mess with someone as major as ZUN.

[Nyarly]

Sounds like he shouldn't just put in hold, but never allow them to sell his games again. But I wonder, if they have such a bad reputation, why did ZUN allow them that in the first place? Was he unaware of that?

[N-Forza]

He said they never gave him any trouble in the past, so it's rather unfortunate that it has come to this.

[Vyrien]

He said they never gave him any trouble in the past, so it's rather unfortunate that it has come to this.

It's a shame that he he gave them a chance at redeeming themselves and they blew it by being twats.

[Lepetit89]

WhiteCanvas's representative is a good friend of mine, talked with him yesterday and he definitely regrets the situation as much as ZUN. Only hope their sales won't take any hit because of this.

Edit: Comment has been published on WhiteCanvas's website http://w-canvas.com/html/WhiteCanvasComment20111221.pdf.

English comment to follow next week、definitely glad to see they're not just accepting the accusations, though, this situation is alarmingly irritating.

[Sabino]

It's been a while since I was last around here, but I wanted to know what people here thought about the legal case going on about the White Canvas versus Tasofro (SUNFISH).

So, here's a recap on what statement has been going on so far, it's a bit long and wordy, but here's what both sides wrote.

On Dec. 20th, ZUN stated on his blog the following.(paraphrased due to translation)

It's the end of the year. There has been no year as busy as this, both in public and private cases (Please let there be no more events this year, especially disasters....)
As always, I'll be skipping the winter comick market. I'll be going back to my home.

Also I have two notices. They're both of business matter, so people concerned about such matters, please read over it.

-------------------------------------------------------------------------------------------
○About the temporal hold put on White Canvas's sales on products by team Shanghai Alice

The commission of Touhou Shinreibyou (13) was announced at Comicke market 80, and began in September, but we decided to get White Canvas to temporary stop handling it.

With regards to commission and sales -since I can't deal with them all by myself- I'm getting assistance from Tasogare Frontier (Tasofro) to deal with the dojin stores about the matter. I received word from Tasofrom that White Canvas hadn't yet payed for their sales.
Also on the guidelines, when companies make and sell foods using the characters from Touhou Peoject I ask of them to get my consent, but  I have confirmed that White Canvas had been creating goods that I haven't given permission to.

I fear it may be troublesome for Tasofro to begin the sales of the new game without the previous balance being payed, and since it seemed like they -White Canvas- were doing something rather illogical when everybody else was respecting the rules, we have come to the decision for White Canvas to stop sales of products from team Shanghai Alice.
Since they were a shop that have been favoring us for a very long time, I am truly regretful of this case.

○About the copyright and re-use of fan work

Touhou Project asks of fanwork (doujin) to be done along the guidelines set, but I have received word that those fanworks used were re-used and/or altered without the consent of the creator.

Gathering the important points;
"Rights of Touhou Project go to team Shanghai Alice"
"Rights for fanwork (with regards to production, distribution, and dealing with the product in general)　fo to the creator of it"

Thus when one wishes to re-use or alter the fanwork one should ask for the permission of the creator of the fan work.
Also, everything made from those fanworks should follow the guidelines set for Touhou Project.
(If in case the creator of the fanwork is unknown (as in case of AAs) and you wish to re-use or add alterations, please be sure to use it so that the viewers will not feel discomfort)

I hope you all a good year.

On Dec. 21st White Canvas responded to this with the following statement (Also paraphrased due to translation)

There has been a comment posted with regards to this matter on the official Blog of Team Shanghai Alice.

It is against our intentions to be presenting our company's answer towards this comment in this sort of manner, but for the circles, clients, and companies concerned about this matter, we would like to confirm on what has been happening.


1 "About the temporal hold put on White Canvas due to unpaid balance to Tasogare frontier"

It has on the Blog mentioned above, "I received word from Tasofrom that White Canvas hadn't yet payed for their sales.~I fear it may be troublesome for Tasofro to begin the sales of the new game without the previous balance being payed".

Currently, our company is settling this this matter in court with the operating company of Tasogare Frontier, SUNFISH Co. Ltd. (The representative being Tomohiko Nakajima, who is also in charge of Kourindou Co. Ltd.)

Since we are still in argument of the legal case, we would hold back on our comments, but our company is currently arguing at court after finishing the "unfinished payments" mentioned in the above Blog.

We find it inappropriate, and truly unsatisfactory that the above Blog commented on the matter as if our company had not finished our payments for no specific reason.

We also find it truly dishonorable that ZUN (Oota Junya), a third person to this case between our company and SUNFISH Co. Ltd. commented on this matter on his own official Blog,  with a critical statement towards our company.

We are suffering inconveniences because ZUN had spread this false information on the internet towards the many miscellaneous viewers, and commented as if we hadn't payed off for all of Team Shanghai Alice's works.

As a company, we would like to declare a strong opposition to these points.


2 About "using White Canvas creating goods without consent as a reason to hold sales"

In 2007 June 23rd, our company had signed a "licensing contract" with ZUN, and due to this contract, we hold the rights to make and sell goods with Characters created by ZUN.

This contract was signed by a request by ZUN to replace the  2004 August 13th "Exclusive sales contract" (A contract allowing our company exclusively to sell products by ZUN in and out of Japan)

After that, our company had created products such as character goods that follows the "licensing contract", and had payed the royalty of those products to ZUN.

In the October of 2010, we received word that the copyright management of team Shanghai Alice had moved to Oyamada Fumio (Current manager of Kourindou Co. Ltd.). Oyamada Fumio had told us that "The copy rights to the works of team Shanghai Alice  had moved to Kourindou Co. Ltd. and we would like to sign a new contract.".

The new licensing contract presented by Kourindou Co. Ltd. was something very apart from the original livencing contract that we had signed with ZUN, and not something that our company could allow. Also, at although we were told that "The management of the copyrights of Team Shanghai Alice owned by ZUN had been moved to Kouridou Co. Ltd." our company was not presented with any contracts documents that could become proof of the matter.

For our company, if the new contract does not prove fit, we can follow the previous contract (the "licensing contract" in 2007 June 23rd) to continue with our production of goods for it is still withing the validation period.
The precise details of the management of the copyright that ZUN held is not something that would effect the validity of this contract.

We feel that Kourindou Co. Ltd. does not understand these details.

Furthermore, about the licensing contract mentioned above, ZUN and Kourindou Co. Ltd. seem to have a different view that our company hold, and we are currently under argument about this matter through our lawyers.

From my understanding, White Canvas seems to be telling ZUN to back off from the arguments that they have with Tasofro, and that the blame they're being subjected is unjust because they weren't sure that the ownership of the rights had moved to ZUN's company.
Although some of the stuff being said does sound just, some details I can't really believe (like ZUN allowing for a monopoly of his games to a company other than his own)

[GuardianTempest]

Corporate Evil, always twisting the words...

What ZUN says, goes. He has the power to influence the entire community to fight, buy his games, and provide him beer. In fact, if worse comes to worse, he might just make TH14 about the antagonist being a Gijinka'd White Canvas.


Epic Fail: Thought you guys would go single-minded. Nice job beating my meager expectations. Being around immature classmates forces me to adopt to their bandwagons.

[Lepetit89]

Corporate Evil, always twisting the words...

What ZUN says, goes. He has the power to influence the entire community to fight, buy his games, and provide him beer. In fact, if worse comes to worse, he might just make TH14 about the antagonist being a Gijinka'd White Canvas.

Because ZUN himself obviously is completely unaffected by corporate pressure and what not, right?
He has the power, yes, but I wouldn't take it for granted that he always uses it the right away.
The way I see it, ZUN produces games that I enjoy, that's about it. It doesn't tell me a thing about him, his situation, his attitude towards certain matters. I'm with WhiteCanvas here, if only because I'm friends with them; I trust them more than ZUN and if that's what they say, then I believe them.

[GuardianTempest]

Impressive. Thought people around here would say otherwise. Well played.

EDIT: Damn, I realized, why do I always play along the worst ideas...

[Lepetit89]

I think it's not that surprising; it's not like we can do more than pick sides based on who we trust/know/like/whatever, so it's obvious that many people would be agreeing with ZUN here.
More than anything, however, I think this is a somewhat sad situation, until two days ago I kind of pictured the whole Doujin-scene to be one giant flowerbed.
However, that's probably exactly why I don't want to get into arguments over this; as a community, we should just trust in who we trust and see what happens. Right and wrong is for the respective authorities to decide, so I'm going to bide my time and wait to see what becomes of this and hope that, in the end, this won't get too bad.

[DarkslimeZ]

I wasn't aware that there even was a kind of "parent company" for Tasofro and TSA now. This Kourindou thing actually sounds a little suspicious to me. Does anyone have any information on them?

[N-Forza]

ZUN made a reply of sorts on Twitter basically implying that White Canvas is indeed not being entirely truthful. Unless ZUN did make an entirely new company to deal with the doujin stores, they're either lying or got duped big time.

[Excelsus]

What i'm being confused is there this COmpany called Kourindou,Co Ltd. Was it even there to begin with? As far as i know tasofro/TSA is a dojin game maker, they shouldnt have superior like Kourindou,Co Ltd. If that is the case, it will be more like... Square enix or capcom. It's like Tasofro is a developer, while that Kourindou,Co Ltd. is a publisher. If that is the case, Tasofro cannot be called as doujin game anymore. It's already full-game developer. As for ZUN, we never know about him, we know that he is a closed-type of person right? He MIGHT open the company that makes him posted something at his blog, or He didnt open the company, making the white canvas the liar instead.

[Sabino]

I wasn't aware that there even was a kind of "parent company" for Tasofro and TSA now. This Kourindou thing actually sounds a little suspicious to me. Does anyone have any information on them?

What i'm being confused is there this COmpany called Kourindou,Co Ltd. Was it even there to begin with?

About Kourindou Co. Ltd. I heard that it was a way for ZUN to not become a NEET after he went away from Taito.
Since ZUN wasn't all that in to legal rights or ownership of copyrights, I think this was a way for ZUN to make way to get somebody experienced to keep track of the copyrights he owns (as seen in the  Oyamada Fumio (Current manager of Kourindou Co. Ltd.) statement).
Having a company could make work (and drinking life) much easier for ZUN so it only makes sense that he had one for all his doujin purpose stuff.
As a ltd. I've never seen the stocks go on any of the trading markets, so it's probably a company where members of Shanghai Alice hold all the stocks to. -Thus completely unknown to by most of the people.

[Lepetit89]

WhiteCanvas's comment has been extended and an English translation has been posted on their Facebook page a few minutes ago:

Our opinion against the comment made by Mr. Junya Ota (太田順也氏)(The current CEO of Korindo Inc. (株式会社香霖堂), well known as ZUN), posted on the Official Blog of Doujin Circle "Team Shanghai Alice (上海アリス幻樂団)", titled as "A Temporary Suspension of Selling Team Shanghai Alice's Productions at White Canvas", posted on 13:11 20th Dec, 2011.

　
　On this occasion, an entry which is titled as above was posted on Doujin Circle Team Shanghai Alice's Official Blog. It is not our real intention to announce our company's opinion in this way. However, in consideration to our valued Doujin Circles, business partners, and all persons related who are concerned about this matter, we would like to make the sequence of events, as well as the relations of facts public.

In regards to "The temporary suspension of sales of Team Shanghai Alice's productions at White Canvas is due to a case of nonpayment towards Doujin Circle 'Tasogare Frontier (黄昏フロンティア)'."

　According to the description which can be found on Team Shanghai Alice's Official Blog:

"...I requested Tasogare Frontier to help me do the consignment of the productions and the correspondence works with Doujin shops. However, I received a report from Tasogare Frontier that White Canvas did not submit their payment to us...I'm afraid I will give Tasogare Frontier troubles if I start the consignment of the newest production even though there is a nonpayment happening..."

　At the present time, our company is pending in lawsuit against SUNFISH Co.,Ltd. (有限会社SUNFISH), which is managing Tasogare Frontier. (The CEO of SUNFISH Co.,Ltd. is Mr. Tomohiko Nakajima (中嶋智彦氏), who is also a current board member of Korindo Inc.). As the lawsuit is in progress, we would like to refrain from making any comments about the case. However, all of the amount of money which is equal to the total sum of the payment mentioned in Team Shanghai Alice's Official Blog as a "non-settled payment" was deposited to the court, and is contesting at law.

　The comment in the blog mentioned above is causing a misunderstanding that our company denied to pay without any reason, which is inappropriate, and we would like to express our regret on it.
　In addition, in midst of the lawsuit dispute between our company and SUNFISH Co.,Ltd. as a third person, Mr. Junya Ota(ZUN) published the comment on his own blog and criticized our company with contents that invite misinterpretation against our company. We would like to express our regret, as well as a strong objection towards the comment.
　Mr. Junya Ota, also known as ZUN, published the comment mentioned above onto the internet towards general public. As a result, a misinterpretation that all of the payments towards Team Shanghai Alice for its productions have not been settled yet was formed and became a rumor and widely spread. Because of that, our company is suffering from the trouble that is caused by it.
　We would like to manifest our strong intent to protest against Mr. Junya Ota's misleading comment.

　In regards to "The temporary suspension of sales of Team Shanghai Alice's productions at White Canvas is due to White Canvas?s unauthorized manufacturing of Toho products."

　On 23rd June 2007, a contract made between our company and Mr. Junya Ota, which is named "Contract of Authorization of Product Commercialization and etc (商品化等許諾契約)" became effective. Based on the contract, our company owns the rights to manufacture and to sell items using the characters that are created by Mr. Junya Ota.
　The contract mentioned above was made in order to replace the previous contract between our company and Mr. Junya Ota named "Contract of Exclusive Sales Rights of Products (商品独占販売契約)" (which states that our company has the exclusive rights to sell all of Mr. Junya Ota's products inside or outside Japan), which became effective on 13th August 2004 and was ended within the contract period with agreement from both sides in accordance with Mr. Junya Ota's request.
　Since then, our company has started the commercialization of products which uses the characters that Mr. Junya Ota has produced, and, of course, all of the payments of royalties towards Mr. Junya Ota have been settled on the basis of the "Contract of Authorization of Product Commercialization and etc".

　However, in October 2010, our company received a message that states the management of copyright affairs of Team Shanghai Alice's productions was handed over to Mr. Fumio Oyamada (小山田文雄氏) (A current board member of Korindo Inc.), who then informed us, "I would like to make a new contract with you, as the copyrights and the merchandising rights of Team Shanghai Alice's productions had already been transferred to Korindo Inc."
　Unfortunately, the conditions of the new commercialization contract shown by Korindo Inc. were greatly different from the "Contract of Authorization of Product Commercialization and etc", and were absolutely unacceptable to us.
　Moreover, Korindo Inc. claims that "the management of copyright affairs of Team Shanghai Alice's productions was handed over to Korindo Inc. already", but the evidence of transition of rights, such as a copy of Copyright Management Contract (著作権管理契約書), has not been shown to our company yet.
　In our opinion, as the new contract could not be made successfully, the one which we made with Mr. Junya Ota ("Contract of Authorization of Product Commercialization and etc", effective since 23rd June 2007) is still effective as of yet, so it is legal that we are just to continue with the commercialization under the conditions written on the "Contract of Authorization of Product Commercialization and etc". It has no effect on the validity of the contract made between our company and Mr. Junya Ota, whether the managing rights of copyrights held by Mr. Junya Ota were transited to Korindo Inc. or not.
　We feel that Korindo Inc. does not understand the situation mentioned above.
　Furthermore, it seems that there is a gap of understanding on the range the current contract is covering, between our company and Mr. Junya Ota / Korindo Inc.. About this point, we are deliberating to each other through the lawyers.

　We cannot help but to believe that, instead of solving the problem legally, the notice of one-sided suspension of trading posted on Team Shanghai Alice's Official Blog is trying to settle the problems forcibly by means of meddling in the legal dispute between our company and a third party (Doujin Circle "Tasogare Frontier"= SUNFISH Co.,Ltd.), as well as causing rumors by making reputation damaging comments on the problem of discrepancies happening on interpretation of the contract between our company and Mr. Junya Ota / Korindo Inc. (the range that "Contract of Authorization of Product Commercialization and etc." covers). We have no choice but to express our disappointment concerning the comment mentioned above.

　In the capacity of our company, we have a suspicion whether the comment posted on Team Shanghai Alice's blog reflects Mr. Junya Ota's true opinion or not, in consideration of the relations between our company and Mr. Junya Ota in the past.

　While manufacturing products, our company always bears in mind to pay serious attention to the guidelines Mr. Junya Ota announced, and in the name of our brand we produce or sell neither products that desecrate Toho Project, nor goods for adults (people who are over 18) only.

　It is regrettable to make the trouble mentioned above between our company and Mr. Junya Ota / Korindo Inc. known to the public in this way, as originally we have the responsibility to work together in order to enliven the genre that is called Toho Project. We would like to express our most sincere apologies for giving troubles and worries to all our valued Doujin Circles, franchise partners, business partners, and our financing institutions.
　Also, please allow us to apologize to all of our valued customers of our physical shops, our online shop, and our franchisees, on this occasion.
　Our company as a whole will continue to do our best to make the Team Shanghai Alice's newest works available for sale.

21st December, 2011

White Canvas

Servitech Co.,Ltd.

Yuji Suzuki
(President)

Seems like they also receive several death threats and what not via Twitter everyday. Of course, they're just pranks, still sickens me to see the lengths some "fans" are willing to go to based on mere accusations. Well, guess I'll take consolation from the fact that those guys do not really represent the fanbase as a whole, but I hope this issue will be resolved soon and things will settle down again.

[かけふみ]

Court? Not even arbitration first? :S

I hopped into WC at like the 24th and was disappointed of the lack of ZUN's stuff. Seems like I came at a wrong time.

I'd rather not jump to conclusions. They should just check the records and methodically find the misunderstandings first. I really think this is some brain-fart.

[Esper]

Court? Not even arbitration first? :S

I hopped into WC at like the 24th and was disappointed of the lack of ZUN's stuff. Seems like I came at a wrong time.

I'd rather not jump to conclusions. They should just check the records and methodically find the misunderstandings first. I really think this is some brain-fart.

Agreed.

[Maav]

How did this case end?

ZUN's stuff are back into White Canvas, but I've seen no official statement on that matter.

[Starxsword]

If they are a big company, there isn't much else you can do but do business with them.
But it is possible that he is unaware of it, either case works.

[Lepetit89]

How did this case end?

ZUN's stuff are back into White Canvas, but I've seen no official statement on that matter.

Doesn't seem like it's over yet, statements have been pulled from both sites, but the case is still ongoing.