IP Newsletter | Fall/Winter 2015
	TRADEMARK, DESIGN, COPYRIGHT & UNFAIR COMPETITION
	Performer Compensation Required for Public Use of Streaming Music Services
	In Korea, it has been legally uncertain whether playing digital music through a streaming music service is a "public performance using a commercial music record", and therefore whether compensation for public performance is owed to the relevant music performers and producers for public streaming of music through such services. The Korean Supreme Court has now finally resolved this issue (Case No. 2013da219616, December 10, 2015) in a decision that expands protection for the rights of music performers and producers. Articles 76-2(1) and 83-2(1) of the Korean Copyright Act ("Act") state that a party who publicly performs using a "commercial music record" shall pay reasonable compensation to the performer or producer of the recording. While the term "commercial music record" has previously been applied to traditional, tangible music media such as CDs, records, and tapes, it has been unclear whether digital music was also included within the meaning of the term. The Supreme Court held that digital music does indeed qualify as a "commercial music record" under the Act, and that "use" of a commercial music record includes not only direct playback, but also indirect playback through methods such as online streaming. The Court determined that a department store which uses streaming services to play music in their store may be liable to compensate the performer or producer of the music streamed. As a result, any party that publicly plays music through a digital streaming service may now be required to compensate the relevant music performers and producers in addition to any fees paid to the streaming service itself (if those fees do not already include such compensation).
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	Seoung-Soo LEE sslee@kimchang.com Nayoung KIM nkim@ip.kimchang.com
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