The Korea Music Copyright Association (KOMCA) has filed a civil lawsuit against the domestic online video service (OTT) Wave for 40 billion won.
KOMCA noted on the 27th that it filed a lawsuit with the Seoul Central District Court against Wave on the 11th for damages due to unauthorized use of association-managed works (copyright infringement).
KOMCA claimed that Wave has refused to pay usage fees for several years, with the total amount of unpaid royalties exceeding 40 billion won.
The estimated unpaid usage fees were based on announced Wave revenue and subscriber data from 2011 to 2022, applying the music copyright royalty calculation standards. KOMCA stated that Wave should pay the amount including an additional charge of 15% on the unpaid usage fees.
KOMCA said, "There is no way to compensate creators for their losses except through lawsuits," adding, "We had no choice but to decide on legal action."
KOMCA pointed out that major domestic OTT operators have not cooperated in paying royalties despite the total amount of unpaid usage fees exceeding 100 billion won.
KOMCA emphasized, "It is difficult to expect the continuous growth of the content industry in an environment where the rights of creators are not protected."
In response, Wave countered that the claim of 40 billion won in unpaid royalties is based on KOMCA's unilateral application of collection regulations.
Wave claimed, "KOMCA has consistently failed to properly respond to negotiations from the OTT industry and has been habitual in filing lawsuits," adding, "For the protection of creator rights and the joint growth of the media and copyright industries, dialogue and negotiation are important, yet KOMCA has focused on lawsuits against the media industry."
Wave explained that the OTT industry paid royalties in 2020, urging KOMCA for serious negotiations to minimize damage to creators.
Wave emphasized, "KOMCA demands unreasonably high music copyright fees only from OTTs and has applied to the Ministry of Culture, Sports and Tourism for changes to the copyright collection regulations," stating, "OTTs end up bearing more than twice the music copyright fees compared to broadcasting media for the same content."
It added, "The OTT industry remains committed to respecting creator rights and meeting fair compensation," stating, "We have continuously requested negotiations to faithfully implement the Ministry of Culture, Sports and Tourism-approved collection regulations, but KOMCA unilaterally announced a breakdown of negotiations."
Wave representatives said that mutual agreement on 'collection standards'—which can be considered a basic principle of negotiation—is necessary, yet KOMCA has ignored this.
Wave stated, "The OTT industry urges KOMCA to stop excessive lawsuits and ludicrous claims in media plays and to earnestly respond to negotiations."