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Korean copyright association files suit against Wavve over unauthorized use of music

Published: 27 Feb. 2025, 18:31

YOON SEUNG-JIN
[email protected]

The logo of the Korea Music Copyright Association [KOMCA]

The Korea Music Copyright Association (Komca) filed a civil suit against Wavve, one of Korea's major streaming platforms, seeking damages of approximately 40 billion won ($27.7 million) for unauthorized use of copyrighted music.

Komca announced on Thursday that it filed the suit against Wavve at the Seoul Central District Court on Feb. 11, alleging that the platform had used copyrighted works under its management without paying copyright fees. The association claimed that Wavve, primarily owned by SK Square with a 40.5 percent stake, has failed to pay the required music copyright fees for several years, and that unpaid royalties now exceed 40 billion won.

To protect the rights of creators as the number of online streaming platforms increases, the Ministry of Culture, Sports and Tourism decided to modify regulations on copyright fee rates. From 2021, streaming services that use copyrighted music for their content were obliged to pay a fee starting at 1.5 percent. The ministry said the rate would gradually increase through 2026.

"The so-called domestic streaming giants like Wavve, Tving, Watcha and U+ Mobile TV are refusing to pay music copyright fees. Therefore, we had no choice but to file a lawsuit since there is no other way to recover the financial losses suffered by creators," Komca said.

Culture Minister Yu In-chon, center, speaks at a conference. [NEWS1]

In response, Wavve rejected Komca's claims, urging the association to return to the negotiation table.

“The streaming platform industry has previously attempted to minimize harm to creators by engaging in negotiations with Komca and paying copyright fees since 2020,” Wavve stated. "However, Komca has imposed disproportionately high music copyright fees on streaming platforms and even sought amendments to the Culture Ministry's copyright fee collection regulations, ultimately doubling our financial burden.”

Meanwhile, in a separate development, the Culture Ministry announced Wednesday the Supreme Court ruled in its favor and imposed a fine of 144 million won against Komca for overcharging television broadcasters. The Supreme Court said the Culture Ministry has the authority to regulate the management ratio for copyright fees, adding that it has collected fees from broadcasters that exceed the copyright fees legally approved under the Copyright Act.

In September 2022, the government fined Komca for overcharging television program providers. Komca could not agree and took the issue to the court.

“This decision clarifies that the Culture Ministry has the rightful authority to oversee copyright fee collection regulations and that copyright trust management organizations must apply the management ratio when contracting with users," an official from the Culture Ministry said.

BY YOON SEUNG-JIN [[email protected]]