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Korean Association of Phonogram Producers November 2007.

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Presentation on theme: "Korean Association of Phonogram Producers November 2007."— Presentation transcript:

1 Korean Association of Phonogram Producers November 2007

2 2 Structure Its members ■ About 1000 companies or individuals registered as a member ■ divided into trust member and remuneration member Number of Staff ■ 26 persons

3 3 Organization Chart

4 4 History Date Activities and achievements 05 Sep 2001 27 Dec 2001 17 Mar 2003 01 July 2003 01 Jan 2004 04 Feb 2004 30 Aug 2005 01 Sep 2005 14 Mar 2007 1 st General Meeting Designated as the collective management organization of remuneration for broadcasting Designated as a trust management organization (by the Ministry and Culture and Tourism) Push ahead with paid online music services Quarterly bulletin, “Phonogram family” launched Lead the Council meeting of Online Music Copyright Organizations (Comprised of the Korea Music Copyright Association, the Federation of Korean Art Performers Organization and Korean Association of Phonogram Producers) Seoul District Court made a decision for accepting the application for the injunction against ‘Soribada’ P2P service. Take in the lead in making a free streaming service, “Bugs music” into the legitimate service Join The Digital Data Exchange, LLC(“DDEX”) first in Asia.

5 5 Rights Managed Rights Available ■ rights to be managed by the association as a trustee. ① right of reproduction and distribution - Dubbing Rights (o) ② right of rental ③ right of transmission ■ rights managed collectively by the association ① right of remuneration for broadcasting - radio broadcast (o) - television broadcast (o) - satellite broadcast (o) ② right of remuneration for digital audio transmission - simultaneous web casting on the internet (o) No Rights Available ■ public performance ① right of public performance in retail etc. (x) ② right of remuneration for public performance (x) ③ right of communication to the public (x) ■ Music Videos The person who made and produced it has the copyright on cinematographic works, not related rights. So the association does not manage it.

6 6 Historical Financials 200420052006 Gross Revenue1,812,8812,672,49315,080,565 Remuneration1,414,4191,453,1971,592,468 Royalties398,4621,219,29613,488,097 Management fee504,414623,5312,263,041 Number of staff152225 ※ Currency unit: USD comment: 1. In 2006, the back payment of royalties for the past unauthorized use of recordings trusted to the association has been added. 2. It has been negotiating with broadcasters in order to raise the tariff rate and so there were some remuneration not to be collected in 2005 and 2006.

7 7 Collections Broadcast - Only the association manages to collect remuneration for recording companies or labels in Korea. The tariff is settled through the negotiation between the association and broadcasters. It is about 12% to 40% of copyright holders’ share. Performers’ share is usually the same as ours. Transmission - The right of transmission is an exclusive right. - The association collects the royalties from contents providers using music trusted to the association. By the way, the tariff of the royalties should be approved by the authority, Ministry of Culture and Tourism. Digital Audio Transmission - The association collects 25% to 35% of the sales of web casters. Others - The right of public performance is not still given to recording producers or labels in Korea. The association has been trying to enlarge the rights of phonogram producers in Korea.

8 8 Distribution Method How to distribute remuneration or the royalties collected ■ Remuneration collected from broadcasters and simultaneous web casters. - distribute the remuneration to each recording company or label quarterly according to the ratio of music used in the service. - There are other collective management organizations for performers and copyright holders. ■ The royalties collected from contents providers and so on. - almost the same as the broadcasters’ case. By the way, the association receives the report about which music is used and how much the music is used in their service.

9 9 License Terms Broadcast - collects remuneration for broadcasting by using commercial recordings. - usually 12% of copyright holder’s share in the case of terrestrial and satellite broadcasters. - about 12% to 40% of copyright holder’s share in the case of cable TV broadcasters. - Because of collecting remuneration based on the sales of broadcasters, there is no rule to limit a certain territory. Transmission - It shows differences according to service types, whether it is download or streaming. - In the case of streaming, the association collects 35% of the sales as the royalties. - In the case of download, the association collects 40% of the sales as the royalties. Digital Audio Transmission - The association collects 25% to 35% of the sales of web casters. In contrast, the organization for performers in Korea is to collect 2% of the sales. Others - In the case of public performance, legislation needed.

10 10 Action Steps ■ New Priority Accounts - enlarge recordings trusted to the association - anti-piracy activated - rational access to emerging market ■ Legislation - introduction of the right of public performance or remuneration for public performance - introduction of the ECL (Extended Collective licensing) ■ Tariff Reviews - raise the tariff rate of remuneration for broadcasting

11 11 Q & A


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