If Copyright Law Is Revised, Directors and Writers Will Receive 112.8 Billion Won in Compensation

Ministry of Culture Industry Impact Analysis Report Released
"Significant Burden on Domestic OTTs with Years of Accumulated Deficits"
vs "Potential for Mass Production of High-Quality Content"

A study has found that if the amendment to the Copyright Act related to revenue sharing of audiovisual works, currently under discussion in the National Assembly, is passed, up to 112.8 billion KRW will be distributed to directors, writers, and others.

The Ministry of Culture, Sports and Tourism and the Korea Copyright Commission announced an industrial impact analysis report on the 16th, which calculated compensation by applying a 2.5% rate to sales. According to the report, the compensation amount that the final provider of audiovisual works must pay to the authors, based on last year’s figures (2021 for broadcasting), is approximately 39.8 billion KRW for films (29 billion KRW from theaters, 10.8 billion KRW from VOD, etc.), about 39.2 billion KRW for broadcasting (12.7 billion KRW from terrestrial broadcasting, 26.5 billion KRW from PP), and 33.8 billion KRW for OTT platforms (Netflix, Wavve, TVING, Watcha).

Professor Choi Bong-hyun of the Department of Traditional Culture, who led the study, explained, "This will be a considerable burden on domestic OTT platforms that have accumulated deficits over several years," but added, "It can motivate creators and improve the quality of audiovisual content, which may have a positive long-term impact on the audiovisual industry."

At the report meeting, representatives of film directors argued, "If domestic and international compensation is distributed equally to creators, stable activities will be possible, leading to the mass production of high-quality content." On the other hand, OTT representatives emphasized, "There will be a chilling effect, such as not producing low-profit content," and stressed, "Revenue-sharing plans that consider the sustainability of the OTT industry must be sought."

There are three proposed amendments to the Copyright Act submitted to the National Assembly. The bill proposed by Assembly members Yoo Jeong-ju and Seong Il-jong stipulates that when directors, screenwriters, and others transfer their copyright property rights to others, they receive compensation from a portion of the revenue earned by the final provider who publicly offers the audiovisual work. The bill proposed by Assembly member Lee Yong-ho centers on a system where if a significant imbalance occurs between the compensation received by the author or performer for transferring copyright property rights and the revenue generated by the copyright assignee’s use of the work, the former can claim additional compensation.

Europe follows the 'EU Single Market Copyright Directive' introduced in 2019. It guarantees the right of authors or performers to receive appropriate compensation when transferring works through legislation in individual countries. South America provides compensation for the use of audiovisual works through practical customs based on laws or precedents. The United States and Japan do not have separate legal systems for this. Instead, revenue from the use of audiovisual works is distributed through collective bargaining between creators’ organizations and audiovisual producers.

Jang Kyung-geun, Director of Copyright Policy at the Copyright Division of the Ministry of Culture, Sports and Tourism, said, "We are carefully considering both the improvement of the harsh creative environment and the worsening management difficulties of OTT platforms," and added, "We plan to supplement the research results and support legislative discussions in the future."

This content was produced with the assistance of AI translation services.