발간등록번호 : 11-1371000-000201-10 2018 Annual Report on Copyright in Korea KOREA COPYRIGHT WHITE PAPER Opening message The rapid development of the digital technology has brought forth an environment in which we can easily create and share our own contents with people around the world without delay and this phenomenon has been contributing to the growth of our cultural industry as a whole. At the same time, there is a growing emphasis on the importance of copyright policies implemented by each country to generate an atmosphere in which the creative contents are continuously recognized for their value so that they can maintain their global competitiveness. The Ministry of Culture, Sports and Tourism(MCST) of the Republic of Korea has been making its utmost to support the growth of Korea's unique contents represented by the Korean Wave. In this efforts, the MCST strengthened the rights of creators and laid the foundations for a fair copyright system through formulating copyright policies and systems that can accomodate and reflect the rapid changes of the digital technology. The Ministry has also sought to create a copyright ecosystem of balance and coexistence. These two elements are prerequisites for sustainable growth of content industry amidst rapidly evolving copyright environment including the advent of the 4th industrial revolution era. As part of its effort to improve the copyright ecosystem of Korea in the form of enhancing the rights of the creators and ensuring fair compensation in the market, the Korean government expanded the scope of business premises which are subject to royalties for the music they play during their business hours. Moreover, the MCST increased the portion entitled to the right holders of music, namely authors, performers and phonogram producers, for the use of music for interactive transmissions from 60% to 65% of the total sales. The Ministry also raised the remuneration rate for the use of works for textbook-making purposes by 10% from the rate of 2016. Meanwhile, the Korean government improved the threshold for the exploitation of the undistributed amount of royalties and remuneration by the collective management organizations by reinforcing the requirements for using undistributed royalties and remunerations for the public interest that are provided under the copyright law as well as establishing a new retention money system in an effort to establish a basis for fair distribution and facilitation of use of copyrighted works. The MCST reinforced its efforts to provide adequate information and assist transactions through the 'Digital Copyright Exchange Service' to facilitate use of copyrighted works. The Korean government also attempted to come up with solutions to copyright infringing actions committed on foreign web sites since May 2018 to properly respond to the calls from the various stakeholders for the counter-measures to be adopted and implemented at the government level against online copyright 2 Opening message 2018 Annual Report on Copyright in Korea KOREA COPYRIGHT WHITE PAPER infringement. As a result, 12 operators of web sites dedicated to distribution of illegal materials online had been arrested and 22 copyright-infringing web sites had been shutdown alone in 2018. The Ministry is continuously making its utmost to reinforce Korea's international competitiveness in the field of cultural services and copyright. According to the Bank of Korea’s ‘2018 Intellectual Property Rights Trade Balance’ announcement made in May 2019, the trade balance of copyright recorded US$1.4 billion surplus(the amount of surplus increased by US$810 million compared to 2017). In cooperation with the relevant international organizations, the MCST has been assisting dispute resolution in the field of copyright and related rights. This White Paper presents to you the copyright policies that had been implemented by the Korean government during the year of 2018 in the form of five separate chapters : (1)Overview of Copyright Policies; (2)Copyright Protection and Awareness Improvement; (3)Activation of the Copyright Industry and its Use; (4)Copyright Conflicts and Settlement; and (5)Improvement of the Copyright System. The Appendix is also provided in order to help readers to have glimpse of the relevant statistics and the general facts about copyright-related organizations in an attempt to be of assistance to those who are interested in copyright. It is my sincere wish that this White Paper broadens readers' understanding on Korea's copyright system and industry and could be of useful reference to rightholders, users and researchers and employees in the cultural contents field as well as anyone with keen interest in copyright and related rights. Korean movies and pop music have been exercising wider influences and enjoyed by people all around the world. I believe that the efforts made by the Korean government to raise the public awareness on the value of copyrighted works have in part contributed to this phenomenon. The MCST will continue to push ahead with copyright policies to improve creative environment and to put on firm basis for a fair cultural ecosystem so that the content industry of Korea can work as one of the leading industry for the economic growth of the nation as well as the systemic foundation for the content industry. December 2019 Minister of Culture, Sports and Tourism, Dr. Park Yang-woo 2018 Annual Report on Copyright in Korea 3 CONTENTS Message from the Minister of Culture, Sports and Tourism 2 Introduction to Government and Public Institutions Related to Copyright 7 Ⅰ. Ministry of Culture, Sports and Tourism 8 Ⅱ. Korea Copyright Commission 12 Ⅲ. Korea Copyright Protection Agency 15 Copyright Policy and Institutional Improvement 19 Ⅰ. History of the Copyright Act of Korea 20 Ⅱ. Overview of the Copyright Act of Korea 23 Ⅲ. International Trade Activities and Status of Membership to International Treaties 29 Ⅳ. Major Legal Cases on Copyright 39 Copyright Protection Activities 41 Ⅰ. Responses to and Crackdowns on Copyright Infringements 42 Ⅱ. Copyright Education and Public Awareness Programs 55 Ⅲ. Copyright Technology 72 Korea Copyright White Paper 2018 Annual Report on Copyright in Korea Facilitation of the Use of Copyrighted Works 79 Ⅰ. Creation of and an Environment for the Efficient Use of Copyrighted Works 80 Ⅱ. Creation of an Environment for the Fair Use of Copyright 95 Organizations Related to Collective Management of Copyright 115 Ⅰ. Overview 116 Ⅱ. Current Status 118 Appendices 141 Ⅰ. Copyright Statistics 142 Ⅱ. Main Activities in 2018 150 Ⅲ. Directory of Major Organizations 154 Annual Report on Copyright in Korea Introduction to Government and Public Institutions Related to Copyright Ⅰ. Ministry of Culture, Sports and Tourism Ⅱ. Korea Copyright Commission Ⅲ. Korea Copyright Protection Agency Ⅰ. Ministry of Culture, Sports and Tourism 1 Organization and History Currently, the government ministry with overall responsibility for the formulation and enforcement of copyright policies in Korea is the Ministry of Culture, Sports and Tourism (hereinafter referred to as “the Ministry”). The Ministry has established copyright policies and implemented a wide range of activities related to copyright protection since 1987. Following several organizational reshuffles, the Ministry has established its current system of organization with four divisions in the Copyright Bureau (Copyright Policy Division, Copyright Industry Division, Copyright Protection Division and Cultural Trade and Cooperation Division). With the advent of the digital network era, the creation, distribution, and usage of copyrighted works have become more diverse, leading to an increased demand for and functions of related policies, as well as the enlargement of related divisions. Initially there was only one division handling copyright-related matters when such work came under the control of the Ministry (then known as the “Ministry of Culture and Public Information”). Approximately 20 years thereafter, it grew to have four divisions and one team in charge of copyright matters and the staff number also increased from 10 to about 60. 8 Introduction to Government and Public Institutions Related to Copyright The human resource increase is primarily attributable to the appointment of a corps of copyright special judicial police officers. These police officers are assigned to regional offices in major cities of Korea (Seoul, Busan, Sejong, Gwangju and Daegu) and their major responsibility is to crack down on illegal copyright infringements. The history of structural reorganization with respect to copyright policy within the Ministry is as follows: <History of Structural Reorganization Concerning Copyright> July 1968 Copyright administration transferred from the Ministry of Education December 1987 Copyright Division established within the Ministry of Culture and Public Information August 2005 Copyright Division transferred from the Culture Policy Bureau to the Culture Industry Bureau Following a government reorganization, name changed from “Copyright Division” to “Copyright July 2006 Team” May 2007 Copyright Team enlarged and divided into Copyright Policy Team and Copyright Industry Team February 2008 “Copyright Protection Bureau” established Computer program protection-related affairs transferred from the Ministry of Information and March 2008 Communication to the Ministry of Culture, Sports and Tourism August 2008 Copyright Protection Team established January 2009 Trade Cooperation Team established in the Copyright Policy Bureau