Ministry of Culture, Sports and Tourism: "Expecting Fair Rights Protection for Creators and Improved Convenience for Users"
[Asia Economy Reporter Kim Heeyoon] A new collection standard has been established whereby music copyright fees for online performances will be applied equally to offline performances.
The Ministry of Culture, Sports and Tourism announced on the 23rd that it has newly established regulations for collecting music copyright fees for online performances. This is the first time that copyright fee collection regulations have been set for online performances, in response to market changes where online performances have greatly increased since COVID-19 and hybrid performances combining online and offline formats are steadily being planned.
The newly established regulations are a revised approval of the Korea Music Copyright Association’s collection regulation amendment, including definitions of online performances, distinctions between paid and free performances, and application of three types of music usage: primary and secondary. It largely adopts the existing offline performance regulations (Article 6 of the Korea Music Copyright Association’s music work usage fee collection regulations for concerts, etc.).
According to the regulations, online performances are defined as offline performances conducted online. However, to prevent market confusion, services subject to existing broadcasting and transmission regulations are excluded to resolve concerns about overlapping fees.
The distinctions between paid/free and the three types of music usage are applied identically to offline performances. The definitions of revenue and rates are also the same. The Ministry explained that it is difficult to recognize any special reason to differentiate the fee and collection system for online performances from the existing offline performance system. The number of users is defined as ‘non-duplicated online performance users.’
In the paid online live concert 'MAP OF THE SOUL ON:E,' the group BTS is performing with ARMYs worldwide through an online format. Photo by Big Hit Entertainment [Image source=Yonhap News]
The rates for paid performances are set as follows: ▲Performances primarily providing music such as concerts (3% of revenue × music work management rate) ▲Performances combined with theatrical elements such as musicals (2% of revenue × music work management rate) ▲Performances using music secondarily such as fashion shows (1% of revenue × music work management rate).
The rates for free performances are defined as: ▲Performances primarily providing music such as concerts (number of users × 60 KRW × music work management rate) ▲Performances combined with theatrical elements such as musicals (number of users × 40 KRW × music work management rate) ▲Performances using music secondarily such as fashion shows (number of users × 20 KRW × music work management rate).
When online and offline performances are combined, the fees for each are summed and settled.
Research by the Music Industry Development Committee, Collection of Field Opinions, and Review by the Korea Copyright Commission
Earlier, the Ministry of Culture, Sports and Tourism conducted a ‘study including the nature of online performances’ through the Music Industry Development Committee last year to review the Korea Music Copyright Association’s amendment proposal for online performance fee collection regulations, and held a forum based on the results. In April, opinions from stakeholders under the ‘Copyright Act’ were also collected.
Subsequently, after review by the Korea Copyright Commission, the commission prepared a review proposal comprehensively considering the opinions of experts and stakeholders collected over about three months, as well as domestic and international situations. The Ministry then conducted a final review of the proposal and approved the amendment to the Korea Music Copyright Association’s collection regulations.
A Ministry official said, “We expect that the online performance fee collection regulations will guarantee the rightful exercise of creators’ rights and improve convenience for users. Based on this, we hope the performance industry will be further revitalized and lead to a virtuous cycle in the music copyright ecosystem.”
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