OTT Music Association Urges “Eumjeohyeop to Stop Lawsuit Pressure and Engage in Negotiations,” Calls for Government Mediation

[Asia Economy Reporter Seulgina Jo] "The Korea Music Copyright Association (KOMCA) should stop unreasonable copyright fee hikes and litigation pressure and engage in negotiations."

Amid escalating conflicts between the online video service (OTT) industry and KOMCA over music copyright usage fees turning into litigation, the OTT Music Copyright Countermeasure Council (OTT Music Council), consisting of Wave, Watcha, Tving, Lotte Cultureworks, and others, urged KOMCA to come to the negotiation table. They also requested active mediation from the Ministry of Culture, Sports and Tourism, the relevant government authority.

On the 26th, the OTT Music Council stated in a press release, "KOMCA is demanding amendments to related regulations from the government instead of negotiating to enforce copyright fee increases, and is resorting to forceful actions such as litigation pressure against OTT companies," urging KOMCA to "stop unreasonable copyright fee hikes and litigation pressure and engage in negotiations."

The OTT Music Council said, "We have expressed willingness to pay copyright fees and proposed negotiations three times, but KOMCA has rejected them without clear reasons. Recently, KOMCA even filed a criminal complaint for copyright infringement against Lotte Cultureworks, a member of the OTT Music Council," pointing out that "KOMCA's demands themselves admit that the conditions are very unreasonable and difficult to reach an amicable agreement through negotiation."

They also criticized, "The Copyright Act stipulates that copyright fees should be collected within the scope approved by the government, but KOMCA is demanding unreasonable fees not even included in current regulations," calling it "a selfish attitude that completely disregards the difficulties of the OTT industry, which has yet to fully blossom, solely for the benefit of rights holders."

Previously, the OTT Music Council proposed negotiations three times, but KOMCA rejected them. Moreover, KOMCA proposed a copyright fee of 2.5% of sales, more than four times the current collection regulation (broadcast retransmission service), and hinted at litigation if not accepted.

In response, the OTT Music Council urged, "Instead of making unverifiable and baseless claims, KOMCA should participate in joint negotiations to agree on objective and reasonable standards," and called on them to "actively engage in negotiations to promote mutual respect and win-win development between rights holders and users."

They also called for active government mediation in the dispute and fair review of the collection regulation amendment. The OTT Music Council pointed out, "KOMCA's proposed amendment to the collection regulation is currently under discussion at the Ministry of Culture, Sports and Tourism's Music Industry Development Committee and the Copyright Commission," noting that "the amendment is strongly opposed not only by OTT companies but also by broadcasters, who expect a significant increase in costs."

Furthermore, they argued, "The composition of the Music Industry Development Committee includes many stakeholders who are rights holders, raising concerns about fairness," and insisted, "The government must thoroughly maintain fairness, sufficiently gather opinions from both rights holders and users, and make a rational decision." The OTT Music Council raised their voice, urging, "As the competent authority, the government should actively mediate the dispute between KOMCA, which has resorted to criminal complaints without proper negotiation, and the OTT industry."