"Copyright collection should not be about enforcement or criminal charges, but rather be a service that users want to use 'willingly.'"
Choi Kwang-ho, the CEO of Livemusic, recently met with OSEN at the Livemusic headquarters in Seocho-gu, Seoul, to take the first step as a collective organization for integrated concert rights collection, expressing a determination to solve the chronic issue of transparency in copyright collection and distribution in the domestic music industry through technology and services.
Livemusic is a corporate venture directly established by the Korean Music Content Association, which includes major record companies and distributors like HYBE, SM, YG, JYP, Sony Music Entertainment, and Kakao Entertainment. It was designated as an 'integrated concert rights collection organization' by the Ministry of Culture, Sports and Tourism in 2023.
'Integrated concert rights collection' entails that businesses using music, such as cafes and gyms, must pay a certain performance fee to music rights holders. This system aims to enhance 'user convenience' and 'management efficiency' by having a single integrated collection organization manage various music use contracts and payments that are divided among different entities.
Livemusic is not simply a collection agency for concert rights. CEO Choi described it as "a platform company providing technological and infrastructural backup to enhance the transparency of copyright collection and distribution."
He noted, "There are still many conflicts regarding settlements and distributions between agencies, artists, choreographers, and lyricists," and stated that they are in the process of building a new distribution system utilizing IT technologies such as AI and big data to resolve this.
He added, "Until now, reports had to be done manually one by one, sales data was often delayed, and some rights holders didn't even know which songs were played where. We aim to completely change this structure."
Currently, the streaming and download market has significantly improved transparency, with charts and sales being publicly available in real time. Album sales have also gained a level of credibility through the Circle Chart's aggregation.
The problem lies in the use of music in stores. There is no system to record which songs were played when in cafes or stores. CEO Choi stated, "This area is still a 'blind zone'" and added, "Livemusic will take the lead in pioneering this field."
Existing copyright organizations have maintained a tough approach, including criminal charges for unpaid usage fees. However, this method stifles the market and fosters a negative perception among users.
CEO Choi proposed an alternative called 'all-in-one music service.' This service would package music for use in stores and concert rights collection together, allowing users to legally play music without any additional procedures upon signing up. He said, "Users will have the confidence that 'this one product will resolve all copyright issues,' and rights holders will also be guaranteed stable revenue."
In addition, one of the core tasks that Livemusic is pursuing is the establishment of an integrated rights holder database. CEO Choi revealed that he was shocked after learning about Malaysia's case at the Asia Forum of the International Federation of the Phonographic Industry (IFPI).
"Malaysia has been building a performance rights holder database since 2012 and has been operating devices that automatically recognize music played in stores. When music plays in cafes, a voice recognition device identifies the song and sends it to the server. We are just getting started, while a country that has prepared for this for 10 years already exists."
He said, "While we have prided ourselves on being at the forefront of the music industry, I deeply felt that we are still latecomers in the field of copyright management."
Choi Kwang-ho, the secretary general of the Korean Music Content Association, is a field expert who has led music industry policy and practice for 20 years since the establishment of the association. He has overall planned the Korea Popular Music Chart, now known as the Circle Chart, and has actively participated in developing foundational systems for the music industry, including the establishment of the integrated database of sound source rights information by the Korea Copyright Commission (KCC), the monitoring system for music used in broadcasts (Broadcasting Music Identifying System), and the library music UCI system.
CEO Choi's vision is clear: "To create a market where more people can gain opportunities and be fairly compensated based on their achievements."
He recalled a time when, during the era dominated by traditional media, managers could create stars by only managing the four major daily newspapers and the three broadcasting stations. "Now, it's an era where if someone gets popular on TikTok or YouTube Shorts, they can become a star right away. While IT technology opens new possibilities, it also poses risks of disrupting market order. We want to strike that balance by integrating technology and policy."
The future envisioned by Livemusic is not merely that of a collection agency. Its goal is to create an industrial infrastructure that satisfies both rights holders and users.
CEO Choi emphasized, "Collection should not be 'regulation' but should serve as 'infrastructure' for industrial growth" and added, "Although it's late, we will build a system that meets global standards from now on."
Additionally, CEO Choi remarked on the recent request by five domestic music-related organizations to the government on the 11th to include the music industry in the tax benefits for content production, stating, "While the video and webtoon sectors receive national support and tax benefits, the music industry only faces regulation without support. It's awkward and regrettable that K-pop, which is core to cultural power, is excluded from the support target."
He explained, "For agencies other than the four major agencies, it's difficult to survive due to the burden of production costs," adding, "Producing even one music video requires a substantial amount of money, creating a structure where small agencies struggle to compete." He continued, "Tax benefits are even more crucial for small to medium-sized agencies than for large conglomerates."
Finally, CEO Choi urged, "Now that K-pop is recognized worldwide, the government and the National Assembly should change their perspective to support the balanced development of the entire industry," asking them to ensure that small and medium-sized agencies have a 'growth ladder' to step onto the global stage.
[Photo] Livemusic
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