"Korean authors and artists will receive royalties for the use of the K-content IP (intellectual property) that platforms like OpenAI's ChatGPT and other AI platforms learn from."
Kang Tae-deok, Chief Technology Officer (CTO) of LargeAct, noted in an interview with CHOSUNBIZ on the 8th that his company acts as an agent for IP rights holders to receive royalties when platforms like OpenAI learn from and generate new content using K-webtoons, dramas, and music.
Established in 2022, LargeAct ventured into the AI IP market in 2023, after working with K-content IP. It is referred to as a 'K-content Super Alignment' startup. This business is not well-known in South Korea but is actively conducted in the United States.
A notable example is 'Fairly Trained,' which represents cultural and artistic professionals, including Hollywood actress Julianne Moore, to prevent their creations from being used freely by AI platform corporations.
Kang, a former software engineer at LG CNS and a founding member of LargeAct, is an AI development expert who has held positions as a director at SK Broadband, CEO of Tongyang Networks, and a special professor in AI at Sangmyung University.
LargeAct has focused on 'compensation' rather than 'protection' of K-content. It negotiates with AI platform corporations on behalf of IP owners, allowing these corporations to use K-content, such as Korean dramas, with the permission of the IP owners and the payment of royalties.
Kang stated, "AI platform corporations are well aware that they could face legal responsibilities if they use content without permission from IP owners, and they are preparing for this." He added, "Soon, K-content creators will be able to gain profits from the use of their IP."
Kang illustrated his point by citing BLACKPINK member Rosé's 'Apartment' as an example. He explained, "As 'Apartment' gains popularity worldwide, parts of the music or video and image content are being newly created and disseminated by AI. However, the IP owner Rosé has not received royalties for that. We aim to address this issue and establish a global ecosystem where copyright holders can receive IP royalties in the AI platform market."
In the United States, several authors have already filed copyright infringement lawsuits against AI platform corporations like OpenAI. Kang noted, "Users will also seek AI platforms that do not have copyright issues with the content they use."
LargeAct is currently discussing K-content royalties with global AI platform corporations, including OpenAI, Perplexity, Safe Super Intelligence (SSI), and Anthropic. At the same time, it is signing contracts to receive content revenue claims from individual artists, authors, various authors' associations, composers' associations, and the IP departments of the three major terrestrial broadcasters.
Kang stated, "We will sequentially charge global AI platform corporations for K-content royalties in the first half of 2025."
LargeAct plans to introduce a 'global AI IP open market' by the end of 2025, where various K-content IPs can be bought and sold. It will be a one-stop service platform for IP registration, transactions, and usage. The original content owners will be registered, and when other users utilize this content, the original owners will receive royalties through the application of IP pedigree technology. It will also include AI generation software.
Kang stated, "We are building an AI IP open market where content can be fragmented, such as parts of videos or scenes from webtoons, for transaction," and added, "The prototype is currently completed, and we are working on its enhancement." Kang emphasized, "The AI platform market is growing, and the use of K-content is increasing. We will build a global AI ecosystem where K-content IP can be protected and traded."