Fair Trade Commission Files Criminal Complaint Against 'Eumjeohyeop'... "Power Abuse Toward Broadcasters Like KBS and MBC"

Fair Trade Commission to Sanction Korea Music Copyright Association on the 26th

The Fair Trade Commission has decided to file a criminal complaint against the Korea Music Copyright Association, which has continuously engaged in 'gapjil' by charging excessive usage fees to broadcasters such as KBS and MBC. This is the first case in which the Fair Trade Commission has sanctioned abuse of market dominance in the copyright sector.

On the 26th, the Fair Trade Commission imposed a corrective order and a provisional fine of 340 million KRW on the Korea Music Copyright Association, which made it difficult for competing businesses to collect broadcasting usage fees, and decided to refer the case to the prosecution.

Since 1988, the Korea Music Copyright Association has monopolized the music copyright consignment management service market. The music copyright trust management service refers to the service of receiving copyright trusts from music copyright holders (composers, lyricists, arrangers, etc.), granting permission to users such as broadcasters to use the music, collecting usage fees, and distributing them to the copyright holders.

Since 2015, after the entry of the newly established copyright trust management operator, the Association of Music Copyright Owners Working Together ('Hamjeohyeop'), broadcasting usage fees were supposed to be collected jointly according to the 'Music Copyright Usage Fee Collection Regulation*' ('Collection Regulation') based on the music copyright management fee rate ('management rate'). However, the Korea Music Copyright Association charged and collected broadcasting usage fees from many broadcasters (59 companies) by applying the management rates it had previously used exclusively (100% or 97%) or arbitrarily set excessively high management rates (97.28%, 96%, 92%).

The Korea Music Copyright Association filed civil lawsuits against KBS and MBC, who only partially paid the broadcasting usage fees that were arbitrarily and excessively calculated and charged without following the revised Collection Regulation. It also pressured system operators (SOs), satellite broadcasters, and others who did not accept the fees it proposed by demanding prohibition of music usage, fee increases, and threatening criminal complaints. Due to these actions by the Korea Music Copyright Association, broadcasters' payments of broadcasting usage fees to Hamjeohyeop were suppressed. In fact, Hamjeohyeop explained that it was unable to collect any broadcasting usage fees from some broadcasters.

The Fair Trade Commission viewed these actions by the Korea Music Copyright Association as presenting unreasonable conditions to the broadcasters, who are their trading partners, contrary to normal business practices. The Commission explained, "The actions of the Korea Music Copyright Association blocked Hamjeohyeop's opportunity to expand its business and forced broadcasters to pay or risk paying excessive broadcasting usage fees. It also caused a restrictive effect on competition by hindering innovations in the method of collecting broadcasting usage fees."

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