The Association for Music Copyrights (chairperson Han Dong-hun, hereafter "Hamjeohyup") said it filed a complaint with the Fair Trade Commission (chairperson Ju Biung-ghi, hereafter "FTC") on Oct. 31 through the law firm Jium regarding alleged unfair transaction practices by Google LLC (hereafter "Google"), which operates YouTube.
Hamjeohyup said that, unlike the contract between Google and the Korea Music Copyright Association (chairperson Chu Ga-yeol, hereafter "KOMCA"), which sets the calculation and distribution structure for YouTube music copyright fees in Korea, different conditions are being applied to Hamjeohyup, a trust organization equally authorized by the government.
According to Hamjeohyup, the fee calculation criteria and settlement procedures set in the Google–KOMCA contract are based on a blanket license method, whereas Hamjeohyup's contract is based on a per-song settlement method.
As a result, even if the same amount of video content is used on YouTube, KOMCA receives fee settlements even without making mistaken claims, but songs managed by Hamjeohyup may experience delayed settlements if claims are not made in time, and after a certain period claims cannot be made, causing disadvantages to creators.
Hamjeohyup emphasized, "The fact that Google negotiated individually with each organization alone cannot justify discriminatory contract terms." It added, "If a business operator that is effectively an essential platform like YouTube proposes structurally different settlement methods between two competing music copyright trust organizations, thereby restricting one organization's market entry and growth, this is closer to abuse of position and unjust discrimination that the Fair Trade Act objects to than a 'difference in bargaining power.' The issue is not whether the contract was signed, but what effect it has had on competition and creator compensation."
It also pointed out that the harm from this imbalance ultimately falls on creators. Even if the same song is used equally on YouTube, there can be discrimination that results in receiving lower copyright fees depending on which organization it was entrusted to.
Hamjeohyup stressed, "If the asymmetry between platforms and specific organizations remains unchanged, the choice and compensation system for lyricists and composers will be distorted."
Kim Seol-i, the lead attorney at the law firm Jium representing the complaint, said, "If the asymmetry in settlement structures formed between a dominant platform and domestic organizations repeatedly works to the disadvantage of copyright trust organizations and their affiliated creators, it can be subject to review under the Fair Trade Act," and added, "We expect the FTC to verify the relevant facts and consider necessary measures from the perspectives of competitive order and rights-holder protection."
Hamjeohyup said, "If a global platform like Google operates contracts by creating a special structure with one organization and effectively raising entry barriers for other organizations, the amount of royalties received can differ depending on which organization a creator joined," and added, "We hope the FTC will closely examine the fairness of the contract structures between platforms and copyright trust organizations through this case and that institutional improvements will be made so that YouTube music fees are distributed transparently and fairly to all rights holders."
[Photo] Association for Music Copyrights
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