The Monetization Trap: Fan Comics, Platform Terms of Service, and the Limits of Fair Use and Fair Dealing

ABSTRACT
Fan Comics are forms of creative expression that enable passionate fans to recreate existing artistic, literary, and cinematic works using their own imagination. These Comics have emerged as a dominant expression on digital webcomic platforms like Tapas and Webtoon. While these platforms rely on fan culture to drive web traffic and advertising revenue, their governing Terms of Service enforce a clear double standard: they prohibit fan artists from earning income, yet routinely disclaim responsibility when copyright disputes arise. This paper argues that digital webcomic platforms systematically exploit fan creators by invoking the exclusive rights of original copyright holders as a legal shield to deny fan artists financial compensation, while simultaneously capturing the profits generated by their work. This paper uses a comparative doctrinal analysis across four key jurisdictions—the United States, the United Kingdom, South Korea, and India to evaluate how different legal regimes address derivative works, platform safe harbors, and statutory exceptions. Further, the paper demonstrates that monetized fan comics fail the test of fair dealing under Section 52 of the Indian Copyright Act, 1957, due to its non-exhaustive structure. The paper concludes that India’s current statutory provision is inadequate in addressing technical loopholes and proposes targeted legislative reforms.