Netflix settles 5-year music copyright dispute with Korean rights body

The Korea Music Copyright Association, known as Komca, said Wednesday it had signed a renewed music copyright licensing agreement with global streaming service Netflix.

The deal covers full collection of royalties for the five-year period from 2021 to 2025 and is expected to mark a significant turning point in music copyright settlement for online streaming platforms and the protection of creators' rights.

The two sides had signed a short-term agreement in 2018, but follow-up negotiations stalled over disagreements on how to apply the Ministry of Culture, Sports and Tourism-approved royalty collection rules and how to calculate usage fees.

Komca pressed ahead with negotiations in recognition of Netflix's central role in distributing Korean content globally, and reached a final agreement based on the collection rules through mediation by the Ministry of Culture, Sports and Tourism.

Netflix has completed payment of five years' worth of royalties for a large number of songs featured in domestic films, drama series and animated works. Komca plans to distribute the funds after verifying the relevant data.

Komca President Lee Si-ha said collecting streaming royalties had been a core priority for the association even before she took office. "As Korean content and music continue to win fans around the world through Netflix, we did our utmost to ensure that the creators behind those works receive the recognition and royalties they deserve," she said.

A Netflix representative said the company had always sought ways to grow alongside creators. "This agreement is the fruit of those ongoing efforts, and we are very pleased that it further strengthens the rights of music creators in connection with the use of their music in Korea," the representative said.