regulator-music industry

FTC fines top music copyright group for unfair practices

SEOUL, July 26 (Yonhap) -- South Korea's antitrust regulator on Wednesday slapped a fine of 340 million won (US$266,000) on a major music copyright association for abusing its market dominance by overcharging broadcasters and hindering the competition.

The measure on the Korea Music Copyright Association (KMCA) came as it charged excessively high fees on the country's 59 broadcasters, disrupting its rivals' business as well, the Fair Trade Commission (FTC) said.

Under the current rules, the KMCA, which manages 67.5 percent of copyrighted music as of 2021, is required to receive royalties from broadcasters based on the ratio along with other players, such as the Korean Society of Composers, Authors, and Publishers (KOSCAP).

The KMCA, however, demanded broadcasters pay fees under its arbitrarily-set ratio ranging from 92 percent to 100 percent.

The FTC also said that the KMCA exerted pressure on broadcasters, threatening to ban the use of its music if they failed to comply with its demands.

"As a result of the KMCA's business disruptions, KOSCAP, the target of these actions, faced challenges in distributing royalties to copyright holders. This situation led to difficulties in attracting new members and retaining existing ones," the FTC said.

(END)

[ⓒ K-VIBE. 무단전재-재배포 금지]