After Google implemented a policy requiring in-app payments, which led to increased payment fees, an agreement was finally reached to promote collaboration between online music service operators and rights holders. This “Online Music Services Copyright Fee Coexistence Agreement” was created to alleviate the burden of increased payment fees on consumers.
Organizations in the music industry, including the Korea Music Copyright Association, the Korea Music Copyright Association, the Korea Music Performers Association, and the Korea Recording Industry Association, worked together with the Ministry of Culture, Sports and Tourism (MCST) to develop this agreement.
The MCST approved the revised “music copyright usage fee collection regulations” for each rights holder organization that included the agreement on May 9th.
The new agreement was developed through more than ten discussions last year to minimize the impact of increased payment fees on consumers. The copyright fee for online music services based on streaming is 65% of total revenue, and the operator’s share, including payment fees, is 35%.
Under the agreement, rights holders will not receive additional copyright fees that they could have obtained through a service price increase due to increased payment fees, while operators will accept lower profits than before, ultimately reflecting only a portion of the increased payment fees in the final consumer price.
Copyright Department Director Lim Sung-hwan expressed his gratitude to the creators for accepting the agreement to promote the development and coexistence of our entire music industry. He also stated that the MCST will work with even greater passion and attention to support rights holders and the industry for the protection of creators’ copyright and activation of use.
