National Assembly Moves to Address "Opacity" in Copyright Organizations... Accelerates Legislation to Strengthen Oversight

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The National Assembly has begun earnest efforts to address the "opacity" in the operation of copyright organizations. Under the judgment that the existing structure, which claimed to protect creators' rights, has instead fostered distrust, a series of legislative actions are underway to strengthen oversight and supervision. There is a clear move to revise the entire copyright system by expanding the scope of regulation from trust management organizations to compensation-receiving organizations.

According to the cultural sector on April 15, an amendment introducing a reauthorization system and mandatory electronic general meetings for copyright trust management organizations passed the National Assembly's plenary session on March 31. Subsequently, on April 13, another amendment to the Copyright Act was proposed to apply oversight and supervision equivalent to that for trust management organizations to compensation-receiving organizations. While Kim Kyoheung, Chairman of the Culture, Sports and Tourism Committee, targeted trust management organizations, Assemblyman Jae Won Kim from the Innovation Party extended the discussion to compensation-receiving organizations, which had previously been subject to relatively lax supervision.

The background to the legislation lies in the accumulated mistrust surrounding the collection and distribution of copyright fees. Trust management organizations serve as key bodies entrusted with creators' rights to collect and distribute usage fees, but controversies over decision-making structures, accounting practices, and member participation have been ongoing. Allegations of misconduct and investigations involving the Korea Music Copyright Association and others have also fueled calls for stronger oversight. Ultimately, the central issue is how far to institutionalize the public nature and accountability of these organizations.

The bill led by Chairman Kim, which passed the plenary session, focuses on restructuring trust management organizations. It stipulates a duty of diligence to protect members' interests and makes electronic general meetings mandatory for organizations above a certain size. Another key point is setting a validity period for trust management business permits and requiring reauthorization. The aim is to clarify the responsibilities of large organizations and provide more thorough oversight of copyright management work, which has significant public interest. Chairman Kim stated, "The amendment will serve as an effective measure to strengthen the fundamental role of protecting creators' rights."

Assemblyman Kim's bill goes a step further. Its core is to introduce a management and supervisory system for compensation-receiving organizations equivalent to that of trust management organizations. These organizations exercise rights not only on behalf of their members but also for non-members, yet they have been criticized for lacking corresponding supervision. The insufficient sanctions for failing to comply with administrative orders without justifiable reasons have also highlighted the need for revisions.

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Compensation-receiving organizations play an important role in educational and public use settings. Representative examples include compensation for textbooks and teaching materials, as well as metered or blanket compensation paid by universities. Under this structure, works can be used within a certain scope without the prior consent of copyright holders, with subsequent compensation, and the collected funds are distributed to the rights holders.

This compensation system has thus become a mechanism that addresses not only the regulation of private organizations but also the usage order in educational settings and the compensation of rights holders. With various systems such as compensation for educational purposes, textbook compensation, and library compensation already in operation, securing trust in the overall system has become increasingly important.

This legislation demonstrates that discussions on improving the copyright system have expanded beyond specific organizations to the overall structure. While Chairman Kim's bill emphasizes member-centered management and strengthened accountability, Assemblyman Kim's bill focuses on filling the supervisory gap in organizations responsible for collecting and distributing compensation. Although their approaches differ, both share the goal of establishing a fair compensation system and protecting creators' rights.

However, the success of these bills depends on the review process. The key issue is how specifically the scope and means of supervision are defined. Although there is consensus on the need to strengthen oversight, the remaining tasks are how to balance the autonomy of private organizations with their public functions and how to address concerns about expanding administrative authority.

As the K-content industry rapidly expands, the problem of opacity in the creator compensation system has been continuously raised. Attention is now focused on whether this legislation will serve as a turning point for restructuring the operating framework of copyright organizations. Assemblyman Kim said, "Although compensation-receiving organizations are essentially performing public functions, oversight has been insufficient. Through this amendment, we aim to enhance the fairness and credibility of the system and provide more substantive protection for creators' rights."

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