[Exclusive] PaySense Backs Down on 'OTT Splitting Sales'... Three Companies Withdraw Injunction

Withdrawal of lawsuit after receiving a written pledge to prevent recurrence
Continued sale of Netflix and Disney+ subscription vouchers

Screenshot of the Paysense webpage selling a 1-day OTT pass

[Asia Economy Reporter Minyoung Cha] Paysense, which had been illegally selling 'one-day passes for online video services (OTT)', has submitted a written pledge containing a promise to prevent recurrence to Wavve, TVING, and Watcha, leading both parties to move toward ending their legal dispute.

On the 8th, an OTT industry insider told Asia Economy in a phone interview, "Paysense has stopped its sales activities and submitted a pledge to prevent recurrence," adding, "They plan to withdraw the lawsuit." If the lawsuit is withdrawn, the hearing scheduled for the 10th will not proceed.

Paysense had been selling daily passes for six OTT services?Netflix, TVING, Wavve, Watcha, Disney Plus (+), and Raftel?at 400 to 600 KRW per person. Unlike existing sites that only support account sharing, the company directly owned the IDs and shared them with members. This violated the OTT industry's terms of service, which state that "no commercial activity using paid services is allowed without the company's explicit approval," sparking controversy over illegality.

In response, the three companies?Wavve, TVING, and Watcha?sent a certified letter in June requesting Paysense to stop the service, but Paysense remained unresponsive. Subsequently, on the 1st of last month, the three companies appointed the law firm Bae, Kim & Lee and filed an injunction at the Seoul Central District Court to halt Paysense's service.

Paysense had claimed that it did not violate the law and that its service was legitimate, but changed its stance about a month after the legal dispute began. Earlier this month, Paysense sent an official letter to the three OTT companies stating it would cease sales activities and partially suspended the service. Currently, only Netflix and Disney+ passes are being sold on its website.

However, since Paysense continues to sell overseas OTT passes, the possibility of further disputes remains. An OTT industry insider noted, "It is unlikely that the main lawsuit will proceed, but since passes for foreign services are still being sold, the potential for disputes remains." Netflix and Disney+ have maintained their position of "under internal review" regarding this matter.