Eumjeohyeop vs Wave 'Music Copyright Royalties' 40 Billion Won Compensation Lawsuit

Damages Lawsuit Filed for Copyright Infringement
Wavve: "Let's Seek Joint Growth of Both Industries"

The Korea Music Copyright Association (KMCA) has filed a civil lawsuit worth 40 billion won against the domestic online video service (OTT) Wavve. Wavve responded by calling the claim one-sided and the lawsuit excessive, urging for renegotiation.

On the 27th, KMCA announced that on the 11th it filed a lawsuit at the Seoul Central District Court against Wavve, claiming damages for unauthorized use of works managed by the association (copyright infringement). KMCA alleges that Wavve has refused to pay over 40 billion won in copyright fees for several years.

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KMCA stated that it estimated the unpaid usage fees by applying the music copyright fee calculation standards based on Wavve’s publicly disclosed sales and subscriber data from 2011 to 2022. Furthermore, KMCA claims that Wavve should pay the unpaid fees plus a 15% infringement surcharge. It was also pointed out that despite major domestic OTT operators losing an administrative lawsuit against the Ministry of Culture, Sports and Tourism in 2022 regarding the cancellation of approval for the 'Music Copyright Fee Collection Regulation,' they have not cooperated in paying copyright fees.

Previously, in 2020, the Ministry of Culture, Sports and Tourism approved KMCA’s proposed revision of the music copyright fee collection regulation. The revision set the OTT music copyright fee rate at 1.5% in 2021, increasing to 1.9995% by 2026. In contrast, the music copyright fees for cable TV operators (SO) and IPTV were set relatively lower at 0.5% (of total broadcasting revenue) and 1.2% (of sales), respectively.

A KMCA official stated, "It is difficult to expect continuous growth in the content industry in an environment where creators’ rights are not protected," adding, "With no other way to remedy creators’ damages except through litigation, we had no choice but to decide on legal action."

In response, Wavve argued that KMCA’s estimates are based on one-sided and arbitrary application of the fee collection regulations and differ significantly from reality. Wavve also urged KMCA to stop the excessive lawsuit and return to the negotiation table to seek ways for mutual growth of the media and copyright industries.

A Wavve representative explained, "The OTT industry seriously urged KMCA for negotiations in 2020 and paid copyright fees. Nevertheless, KMCA has demanded disproportionately high music copyright fees only from OTTs and applied to revise the Ministry of Culture’s copyright fee collection regulations, resulting in OTTs bearing more than twice the burden compared to broadcasting."

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