OUTRAGE: Crunchyroll's Subtitling Terms of Service

Here's the TOS straight from the horse's mouth: http://www.crunchyroll.com/subtitle_tos
I've mirrored it so I can put my own emphasis.

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Thanks for checking out the new subtitle features on Crunchyroll!!

One of the reasons why some anime never makes it outside of Japan is because there's not enough of an audience to even recoup the costs of translating(0) :( However, I know that there are so many great great fans out there that are willing to help if it means that others can enjoy it. So as part of our discussions with Japanese anime companies, we suggested that they allow CR users to help subtitle in return for giving credit to the fans!(1)

However, in order to translate and subtitle, we have to require that you agree to these terms because the only way we could get Japanese companies to agree was to ensure that they would have the rights they need to use the subtitles. In return, we'll make sure you get credit for the subtitles right here on CR, as well as anywhere else they might be used(2). So if one of the titles you sub one day becomes huge, you'll be able to say you were the one who helped get it there with proof :) My hope is that one day ppl will help translate into every language imaginable and grow fans everywhere.

~shinji(0)

I AGREE (button)

CRUNCHYROLL
TRANSLATION TERMS AND CONDITIONS

PLEASE READ THE FOLLOWING TERMS AND CONDITIONS CAREFULLY. YOU RECEIVE NO OWNERSHIP RIGHTS IN THE TRANSLATED CONTENT(3) OR CRUNCHYROLL CONTENT.

THESE TRANSLATION TERMS AND ANY SPECIFICATIONS PROVIDED WITH THE CRUNCHYROLL CONTENT (COLLECTIVELY THE "TRANSLATION TERMS") FORM PART OF THE CRUNCHYROLL TERMS OF USE ("TOU") AND ARE INCORPORATED THEREIN BY REFERENCE. TO THE EXTENT THAT THERE ARE ANY CONFLICTS OR INCONSISTENCIES BETWEEN THESE TRANSLATION TERMS AND THE TOU, THESE TRANSLATION TERMS WILL GOVERN AND CONTROL. ANY CAPITALIZED TERMS NOT DEFINED HEREIN HAVE THE MEANINGS SET FORTH IN THE TOU.
YOU UNDERSTAND THAT BY CLICKING THE "I AGREE" BUTTON, BY ACCESSING OR DOWNLOADING ANY CRUNCHYROLL CONTENT OR BY USING THE SITE OR SERVICES, YOU ARE AGREEING TO BE BOUND BY THESE TRANSLATION TERMS. IF YOU DO NOT ACCEPT THESE TRANSLATION TERMS IN THEIR ENTIRETY, YOU MAY NOT ACCESS OR USE THE SITE OR SERVICES OR ANY CRUNCHYROLL CONTENT THEREIN.

1. Grant of License. Subject to your compliance with the terms and conditions of the TOU and these Translation Terms, Crunchyroll grants you a non-exclusive, non-transferable, non-assignable, non-sublicensable, limited right and license to make Translated Content from certain Crunchyroll Content solely for use by and the benefit of Crunchyroll and its third party content partners (including any Content Providers (defined below)). "Translated Content" means the content created by you from the addition of subtitles to Crunchyroll Content. "Crunchyroll Content" means, collectively, the text, data, graphics, images, Crunchyroll trademarks and logos and other content (including Licensed Content) made available through the Site and Services, excluding User Submissions.

2. Restrictions. Except as expressly specified in these Translation Terms you may not: (a) copy or modify the Translated Content or Crunchyroll Content, in whole or in part; (b) transfer, sublicense or otherwise distribute any Translated Content or Crunchyroll Content to third parties(4); or (c) use the Translated Content or Crunchyroll Content in any unlawful manner, for any unlawful purpose, or in any manner inconsistent with the TOU or these Translation Terms.

3. Ownership.

a. General. Crunchyroll and its licensors own all rights, title, and interest in and to the Crunchyroll Content (including any Licensed Content) including all intellectual property rights therein. The Crunchyroll Content is protected by United States copyright law and international treaties. You will not delete or in any manner alter the copyright, trademark, and other proprietary rights notices or markings appearing on Crunchyroll Content as delivered to you. Crunchyroll reserves all rights in the Crunchyroll Content not expressly granted to you in these Translation Terms subject to the underlying rights of its third party content partners.

b. Assignment. You acknowledge and agree that the entity noted in the credits of the Crunchyroll Content you access and/or download via the Site or Services ("Content Provider") is a third party beneficiary of these Translation Terms. You acknowledge and agree that Crunchyroll will own all rights, title and interest in and to any Translated Content. You hereby assign, convey, and transfer and agree to assign, convey and transfer all, right, title and interest in and to any Translated Content and any intellectual property rights therein to Crunchyroll.(5)

c. Further Assurances. At Crunchyroll's request, during and after the term of these Translation Terms, you will assist and cooperate with either party in all respects, and will execute documents, and will take such further acts reasonably requested by Crunchyroll to enable Crunchyroll to acquire, transfer, maintain, perfect and enforce its intellectual property rights and other legal protections for the Translated Content. You hereby appoint the officers of Crunchyroll as your attorney-in-fact to execute documents on your behalf for this limited purpose. You warrant that all so-called moral rights you may have in any Translated Content are hereby waived.(6) If for any reason a court of competent jurisdiction finds Section 2(b) herein to be unenforceable, then you hereby grant or will cause to be granted to Crunchyroll an exclusive, royalty-free, irrevocable, perpetual, transferable, worldwide license (with the right to sublicense) to use, copy, reproduce, modify, prepare derivative works based upon, distribute, sublicense, display, perform and transmit the Translated Content in any media formats and through any media channels.(7)

d. Related Rights. To the extent that you own or control (presently or in the future) any intellectual property or proprietary rights that block or interfere with the rights assigned to Crunchyroll under these Translation Terms (collectively, "Related Rights"), you hereby grant or will cause to be granted to Crunchyroll an non-exclusive, royalty-free, irrevocable, perpetual, transferable, worldwide license (with the right to sublicense) to copy, reproduce, modify, create derivative works based upon, distribute, sublicense, display, perform and transmit any content or materials of any kind that are covered by such Related Rights, to the extent necessary to enable Crunchyroll to exercise all of the rights assigned or licensed to it under this Agreement.
(7)

4. Survival. Sections 2 and 3 herein will survive any termination or cancellation of these Translation Terms or the TOU. (8)

5. Questions. If you have questions about these Translation Terms, please contact Crunchyroll by emailing us at support at crunchyroll dot com.

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Analysis
0: Nice wording, shinji (Crunchyroll's PR department): While the qualifier "some" is bound to be true, it doesn't mean it's typical.

1: Note this statement, I refer to it later.

2: Note this statement, I refer to it later.

3: Definition of translated content was later. (it links to their definition of translated content)

4: This means that if you submit work to Crunchyroll, you aren't allowed to use it anywhere else. Of course, it isn't your work anymore. Sound fair to you? (footnote 7 expands upon this)

5: About your work... not only do you not own it, Crunchyroll owns it and all intellectual property rights along with it!

6: Please read the moral rights page first. This means that you waive your right to being attributed credit to your work (or anonymously), and your right to the integrity of the work (the right of having your work kept unaltered from the way you made it).
Combine 5 and 6. "Even if an artist has assigned his or her rights to a work to a third party, he or she still maintains the moral rights to the work." (Wikipedia). Nope, not in this case. You lose your rights to the work, and all associated moral rights too.

7: If the law changes so that Crunchyroll can't have the rights to your work, you must give Crunchyroll a license that is:
Exclusive (If you use your work elsewhere, they can sue you)
royalty-free (they can profit off your work, and they won't pay you a penny)
irrevocable (you cannot rescind the ownership of the work)
perpetual (you give your work to Crunchyroll, forever)
transferable (if Crunchyroll dies, they can pass off the license to your work to whoever they want so that it doesn't expire)
(stuff) so that they can do these things to your work:
modify (ie. they can change your work without your permission)
prepare derivative works (ie. you do not own copyright on the work and cannot prevent them from creating works based off of your work--for example, as a reference for Crunchyroll's translators)
distribute (mentioned before) ... (other stuff)

8: If you change your mind on agreeing with the terms of service after you've agreed to them, sections 2 and 3 will still apply. In other words, you cannot effectively back out of the contract.

Now just wait a minute. Please read 1 and 2.
The premise of 1 is that the Japanese anime companies will GRANT the right to produce derivative TRANSLATIONS to Crunchyroll users, and in return, the users will be given "credit". Actually, the slimy part is that the companies see that they are giving fansubbers a right, and they expect to get something in return. The fansubbers don't even know that fansubbing is in and of itself STRICTLY illegal (Further reading), so they think they're doing the companies a favor and expect something from the companies. Not going to happen.

We ought to define "credit" here. From the fansubber's point of view, they are creating an 'original work.' For an original work,one expects to have ownership and attribution of the work in question, to be guaranteed the integrity of the work, and the right to publish one's work wherever they want.

The premise of 2 is that Crunchyroll will ensure that you get credit for the work on Crunchyroll's own website or anywhere else they need to use it.

1 is thrown out the window in the Terms of Service: see ownership, attribution and integrity of work, and the right to publish the work wherever.

2 is completely goodwill, and I fail to see how the terms of service ensure that the fansubber will be given credit. Consider that nowhere in the document does the fansubber have any legal recourse should Crunchyroll decide to take/change/remove "credit". Also, note that from 7, Crunchyroll is allowed to use the fansubber's work as they see fit.


So what benefits does a fansubber have for submitting work to Crunchyroll? Only one: sanctioned, legal fansubbing! But the price to pay is the legal equivalent to selling your soul to the devil.
I've seen one other document resembling this, and it's the Tokyopop Manga Pilot program, which is remarkably much worse because the artists are producing original work. ANN remarks on Manga Pilot program.

Sorry, Crunchyroll. I don't think I can accept the terms of service. I've broken your terms of contract by making the previous post, but I'll wait and see what the consequences are.