"Urgent Need to Amend Copyright Law for OTT... Concerns Over Flood of Lawsuits"

Cable TV Broadcasting Association PP Council Proposes Legislation to Introduce 'Transmission Compensation Claim Right' for Commercial Sound Recordings

[Asia Economy Reporter Kim Heung-soon] The Korea Cable TV Broadcasting Association PP Council has proposed legislative amendments, stating that revisions to the Copyright Act are necessary due to the increased use of online video services (OTT). They argue that a 'transmission compensation claim right' should be introduced for music performers and record producers to enable the commercial use of music recordings on new platforms without issues.

According to the PP Council on the 2nd, the copyright fees currently paid to performers such as singers and record companies in broadcasting production are settled collectively as broadcasting compensation to the compensation payment organizations due to the numerous usage details per program. Each program involves handling rights relationships for as few as 30-40 and as many as 300-400 usage instances.

When distributing via OTT, it is considered transmission rather than broadcasting, making it impossible to apply related copyright provisions. Therefore, rights must be managed by obtaining transmission rights for each song. In particular, transmission rights are exclusive rights that require prior permission before use, unlike broadcasting compensation, which has been identified as a significant obstacle in the distribution field where time is money.

Source=Korea Cable TV Broadcasting Association PP Council

Industry insiders say, "With the recent surge in OTT content, the method of obtaining transmission rights individually is urgently in need of revision, considering that distribution occurs within one hour after broadcasting." They argue, "Just as the broadcasting compensation system was introduced through the 1986 Copyright Act amendment, the law should be quickly amended to apply a compensation system to transmissions such as OTT video on demand (VOD) to accommodate user behavior and enable smooth service provision by producers and distributors."

Nam Tae-young, chairman of the PP Council, expressed concern, saying, "Currently, OTT operators cannot contract with record producers and music performers, so services are being provided without contracts." He warned, "If this situation persists long-term, copyright infringement lawsuits will follow in succession, or content distribution will inevitably shrink."