KMCA Refutes "YouTube Residual Royalties Allegations, Baseless Attacks by Together Music Copyright Association"

The Korea Music Copyright Association. Provided by KOMCA

The Korea Music Copyright Association (KMCA) on the 23rd refuted the allegations raised by the Together Music Copyright Association regarding the alleged monopoly and delayed settlement of YouTube residual royalties, calling them "baseless attempts to undermine us in order to cover up their own lack of operational capabilities."

The previous day, the Together Music Copyright Association had submitted a report to the Fair Trade Commission accusing KMCA of unfair practices in the settlement process for YouTube residual royalties. In response, KMCA stated, "These claims stem from a lack of understanding of the structure and procedures of the copyright royalty collection system," and argued, "They are shifting the blame for their own poor settlement management onto us."

Regarding the disputed residual royalties, KMCA explained, "These are amounts for which specific rights holders have not been identified. The association merely acts as a domestic settlement agent according to our contract with Google (YouTube)," adding, "The storage and processing of royalties are entirely under Google's authority, and anyone who files a legitimate claim through the proper procedures is eligible for payment."

KMCA further emphasized the reason for acting as the primary recipient of these funds, stating, "As the largest music copyright trust organization in Korea, we took action to recover royalties that could have otherwise remained unclaimed, in order to return them to creators." The association added, "If the Together Music Copyright Association had directly initiated the claim process after signing a contract with Google in 2016, these amounts would not have been included as residuals in the first place," and pointed out, "It is inconsistent to raise an issue now after not exercising their rights for four years."

Addressing suspicions of delayed settlement, KMCA said, "In response to the Together Music Copyright Association's request, we reviewed the submitted data, but there were numerous errors in the initial materials, such as usage counts expressed as decimals or missing shares of reproduction rights, making proper calculation impossible." The association continued, "We deployed our own staff to conduct data verification and cross-checking, and settlement and payment were carried out after all necessary materials were submitted in November 2022," adding, "It is unfair to misrepresent this as a delay."

Regarding the partial distribution of residual royalties that has already taken place, KMCA explained, "The rightful share of KMCA members was included, and the distribution was carried out with due caution following legal review."

In response to claims of lacking procedures for identifying and notifying rights holders, KMCA stated, "Google is the principal party for residual royalties, and when a rights holder submits a claim, Google directs them to KMCA as the domestic agent." The association added, "Although we are not legally obligated to make public notifications, we are voluntarily providing guidance out of a sense of ethical responsibility."

Regarding demands for disclosure of information, KMCA said, "It is unreasonable to repeatedly request information that has already been disclosed or to demand the release of information that cannot be made public due to non-disclosure agreements (NDAs)." The association added, "It is difficult to understand why the Together Music Copyright Association, as a trust management organization that should be fully aware of the contract structure, is raising this as an issue."

KMCA concluded, "The failure to receive residual royalties in a timely manner was not due to the association's fault, but rather resulted from the Together Music Copyright Association's poor management and inaction," urging them "to cease actions that undermine the order of copyright management and to adopt a responsible attitude based on facts."

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