Modernising Copyright
Possibility of Virtual Goods Market and Measures to vitalize Creative Economy
(with Les Militaribles Case)


 2013. 2. 22. | KK Ko | Twitter: @doorsros




2013. 2. 22. | KK Ko
Intro: Les Militaribles




2013. 2. 22. | KK Ko      2
Overview of Current Status

„Les Militaribles‟, a parody of the musical film „Les Miserables‟ released in 2012, is a low
cost creation by Proteurs, but led an explosive response due to its high quality




                                                                                 Large scale and dynamic
                                                                                 shooting techniques hardly
                                                                                 seen in low cost films




                                                                           Well-secured seriousness of
                                                                           the original with a solid story
                                                                           line, but added humor elements




                                                                       Obtained high quality as a musical
                                                                       film with casting every actors
                                                                       majored in voice




                                                                          Proteur: Professional+Amateur
2013. 2. 22. | KK Ko                                                                                3
Overview of Current Status

The popularity of „Les Militaribles‟ became a catalyst for regenerating interest in the
original „Les Miserables‟ and increased the original work‟s value, now is revitalizing related
industries




2013. 2. 22. | KK Ko
Overview of Current Status

In accordance with increasing smart phone users exceeded 100 million in 2012, Virtual Goods
which considers smart environment from the initial planning step is also increasing, Virtual
Goods market‟s growth will be more accelerated




                                                                            Source: BCG(2012)
2013. 2. 22. | KK Ko                                                                      5
Overview of Current Status

 Virtual Goods circulation will be the alternative which can offset the decline in
 communication revenue, ICT company‟s main profit source. For healthy growth of the
 related industries, copyright protection measures are urgently needed
“In the Smart Era,
Virtual Goods are the most important that it is
available to be produced and distributed on the
telecommunications network among others
: Physical Goods and Service Goods.“


“Virtual Goods will revive depressed world
economy as well as it will be the only alternative
to give hope to young people and their future. Because
Creativity is a limitless human resource.”


“Cloud service will dedicate to creating the environment
where online contents are easily
accessed without permitting download and
to protect the copyright of Virtual Goods.”




                                                                         kt CEO Lee, Suk-Chae
 2013. 2. 22. | KK Ko                                                                     6
Overview of Current Status

„Intellectual Property-Intensive Industries‟ Contribute $5 Trillion, 40 Million Jobs to US
economy, nevertheless US government still seeks to strengthening the copyright protection

  Total Employment Supported by                                          Value Added and Employment Shares of
  IP-Intensive Industries, 2010                                          IP-Intensive Industries, 2010

                                                 40 million Jobs
    40000


    30000
                                                                                         34.8%
    20000                                                                              5 Trillion


    10000


         0

                  Patent-intensive      Trademark-intensive
                  Copyright-intensive   IP-intensive
                                                         (unit: 1,000)                 Share of GDP: IP-Intensive Industries


  • IP-intensive industries supported 40.0 million jobs                  • While IP-intensive industries accounted for 18.8 percent
  (or 27.7 percent of all jobs) directly and indirectly,                 of all jobs in the economy in 2010, their $5.06 trillion
  through a supply chain that stretches across the economy.              in value added in 2010 represented 34.8 percent of total GDP.



                                                                                  Source: „IP and the U.S Economy‟, Industries in Focus
2013. 2. 22. | KK Ko                                                                             - U.S. Department of Commerce(2012)7
Detailed Comments: from having to sharing

Provided that strengthening IPR is likely to protect copyrights and to decrease accessibility,
digital copyright should be approached with the view of “from having to sharing” to achieve the
economic development and to prevent potential conflicts simultaneously




                       •The Samsung vs. Apple patent lawsuit caused great financial damages
                        for both companies due to enormous amount of legal costs,
                       but it is not ended yet, nor solved anything.
2013. 2. 22. | KK Ko                                                                          8
Detailed Comments: Fresh IP

The KSFs of Gangnam Style, a worldwide hit in 2012, are the production of Crowdsourcing &
Copyright sharing (From Having to Sharing) and unique distribution method




 • Horse dance through a process of crowd sourcing   • Parody of an explosive increase
                                                      - Obama Style (U.S.), Brazil Style (Brazil),
                                                        Prison Style (Philippines)

2013. 2. 22. | KK Ko                                                                                 9
Detailed Comments: Digital Copyright Exchange

Prof. Ian Hargreaves suggested building up „Digital Copyright Exchange‟ for the copyright
management of digital content and realization of growth potential for creative industries




“A Digital Copyright Exchange will facilitate
copyright licensing and realize the growth
potential of creative industries.“

“The assessment should include exploration
with design interests of whether access
to the proposed Digital Copyright Exchange
would help creators protect and market
their designs and help users better achieve
legally compliant access to designs.”

“A work should only be treated as an orphan
if it cannot be found by search of
the databases involved in the proposed
Digital Copyright Exchange.“




                                              Source: Digital Opportunity „A Review of Intellectual Property and Growth‟
2013. 2. 22. | KK Ko                                - Ian Hargreaves(2011)                                              10
Detailed Comments: Modernising Copyright

British government announced a revised bill, „Modernising Copyright‟, which reflects
requirements of the smart era on the basis of Professor Ian Hargreaves‟ report.


                                                                                                          Data analytics for
         Private copying                                                                                  non-commercial
                                                                                                              research


             Education                                                                                    Access for people
                                                                                                           with disabilities

                                                          Modernising
         Quotation and                                     Copyright                                        Archiving and
         news reporting                                                                                     preservation


      Parody, caricature
                                                                UK                                             Public
         And pastiche                                                                                       administration


          Research and                                                                                         Copyright
          private study                                                                                         Notices


              • Revision details:
              On the assumption of Fair Dealing, making a copy without author’s permission for personal usage is permitted.
              For purpose of education, quotation, research, conservation and administration, reproduction and application of
              creative works are legally allowed.
                                                          Source: Modernising Copyright: A modern, robust and flexible framework
2013. 2. 22. | KK Ko                                            - UK Government(2012)                                              11
Summary of Approach

Based on cloud infrastructure along with smart-suited „DCE‟ and „Modernising Copyright‟,
if author can be supported to safely deal copyright and get properly paid, the healthy
growth of Virtual Goods industry will be expected.

                                                                   Copyright protection through Cloud Infrastructure
                                                                   • Allowing anyone who wants to use copyrights or
                                                                   copyrighted materials to access but disapproving of
                                                                   downloads
                                                                    - Protecting copyrights through DRM
                                                                   • Allowing individual copyright holders to trade their
                                                                   copyrights and copyrighted materials based on Cloud
                       IP and 1st Materials                        Infrastructure and to help new business opportunities
                                                                   without additional investment

                        2nd Materials                     Create   Establishing Ecosystem for Virtuous Circle
                                                          Fresh
                                                                   • Creating legitimate business ecosystem where fresh IP or
                                                            IP
                                                                     newly-copyrighted materials are briskly created and distributed
                       3rd Materials                                - Contributing to get rid of root causes of copyright
                                                                      infringement and acquiring profits without burden of legal fees

                   4th Materials                                   Required for cooperation from „the government
                                                                   and corporate‟
                                       Fresh IP Flow ©:            • Required for cooperation from „the government and corporate‟,
                                    Money Flow ¥:                   since it requires for developing governmental policies and
                                                                     infrastructure
2013. 2. 22. | KK Ko                                                                                                              12
Summary of Approach

For East Asia‟s globally leading Virtual Goods economic development, we suggest to
establish Korea-China-Japan Digital Copyright Exchange, so that it can support creators to
make a rational and easy deal and also to protect their copyright.

                                      „Digital Copyright Exchange for Virtual Goods‟
                                      among South Korea & Japan & China
                                     • Implementation Schemes
                                      - Collaboratively establish and operate Korea-Japan-China
                                        Digital Copyright Exchange
                                      - Respective governments support related policy and ICT
                                        companies support related infrastructure
                                        (December, 2012, at Beijing, Korea-China Internet Board
                                        discussed about this idea)
                                     - Total ecosystem construction: from suggesting Virtual
                                        Goods and evaluating its commodities values to the
                                        investing

                                     • Expected Effectiveness
                                      - Easier checking up on the copyright information and
                                        avoiding copyright dispute
                                      - Vitalize production of high quality work and utilization of
                                        legal work
                                      - Contribute to reduction in respective country unemployment
                                        through making non-investment start-up business environment
                                      - Korea-Japan-China alliance leads East Asia‟s Virtual Goods
2013. 2. 22. | KK Ko
                                        economic development
                                                                                                  13
Appendix - 2012 Global Smartphone Subscribers




2013. 2. 22. | KK Ko                            14
Appendix - Modernising Copyright: A modern, robust and flexible framework



                   Scope                                                    Amendment
                                  People will be permitted to copy content they have bought onto any medium or device that they own,
             Private copying      strictly for their own personal use(such as transferring their music collection from CD to iPod).
                                  The Government will provide a fair basis for future licensing by modernising the current educational
                 Education        exceptions.
                                  The Government will create a more general permission for quotation of copyright works for any
  Quotation and news reporting    purpose, as long as the use of a particular quotation is “fair dealing” and its source is acknowledged.
                                  The Government will legislate to allow limited copying on a fair dealing basis for parody, caricature
Parody, caricature and pastiche   and pastiche.
                                  The Government will allow sound recordings, films and broadcasts to be copied for non-commercial
    Research and private study    research and private study purposes, without permission from the copyright holder.

        Data analytics for        Non-commercial researchers will be allowed to use computers to study published research results
     non-commercial research      and other data without copyright law interfering.

           Access for people      Government will allow people with disabilities the right to obtain copyright works in an accessible form,
            with disabilities     if there is not a suitable one on the market already.

                                  Museums, galleries, libraries and archives will be allowed to preserve any type of copyright work that
    Archiving and preservation    is in their permanent collection and cannot readily be replaced.
                                  The existing exceptions will be widened to enable more public bodies to proactively share some third
        Public administration     party information online, as they already can through issuing paper copies.
                                  The Government also intends to introduce a new, non-statutory system for clarifying areas where
           Copyright Notices      there is manifest confusion or misunderstanding on the scope and application of copyright law via
                                  Copyright Notices issued by the Intellectual Property Office (IPO).




                                               Source: Modernising Copyright: A modern, robust and flexible framework
2013. 2. 22. | KK Ko                                 - UK Government(2012)                                                           15
Thank you!

 2013. 2. 22. | KK Ko | Twitter: @doorsros




2013. 2. 22. | KK Ko

강의자료 Kkk 20130221(eng)

  • 1.
    Modernising Copyright Possibility ofVirtual Goods Market and Measures to vitalize Creative Economy (with Les Militaribles Case) 2013. 2. 22. | KK Ko | Twitter: @doorsros 2013. 2. 22. | KK Ko
  • 2.
  • 3.
    Overview of CurrentStatus „Les Militaribles‟, a parody of the musical film „Les Miserables‟ released in 2012, is a low cost creation by Proteurs, but led an explosive response due to its high quality Large scale and dynamic shooting techniques hardly seen in low cost films Well-secured seriousness of the original with a solid story line, but added humor elements Obtained high quality as a musical film with casting every actors majored in voice Proteur: Professional+Amateur 2013. 2. 22. | KK Ko 3
  • 4.
    Overview of CurrentStatus The popularity of „Les Militaribles‟ became a catalyst for regenerating interest in the original „Les Miserables‟ and increased the original work‟s value, now is revitalizing related industries 2013. 2. 22. | KK Ko
  • 5.
    Overview of CurrentStatus In accordance with increasing smart phone users exceeded 100 million in 2012, Virtual Goods which considers smart environment from the initial planning step is also increasing, Virtual Goods market‟s growth will be more accelerated Source: BCG(2012) 2013. 2. 22. | KK Ko 5
  • 6.
    Overview of CurrentStatus Virtual Goods circulation will be the alternative which can offset the decline in communication revenue, ICT company‟s main profit source. For healthy growth of the related industries, copyright protection measures are urgently needed “In the Smart Era, Virtual Goods are the most important that it is available to be produced and distributed on the telecommunications network among others : Physical Goods and Service Goods.“ “Virtual Goods will revive depressed world economy as well as it will be the only alternative to give hope to young people and their future. Because Creativity is a limitless human resource.” “Cloud service will dedicate to creating the environment where online contents are easily accessed without permitting download and to protect the copyright of Virtual Goods.” kt CEO Lee, Suk-Chae 2013. 2. 22. | KK Ko 6
  • 7.
    Overview of CurrentStatus „Intellectual Property-Intensive Industries‟ Contribute $5 Trillion, 40 Million Jobs to US economy, nevertheless US government still seeks to strengthening the copyright protection Total Employment Supported by Value Added and Employment Shares of IP-Intensive Industries, 2010 IP-Intensive Industries, 2010 40 million Jobs 40000 30000 34.8% 20000 5 Trillion 10000 0 Patent-intensive Trademark-intensive Copyright-intensive IP-intensive (unit: 1,000) Share of GDP: IP-Intensive Industries • IP-intensive industries supported 40.0 million jobs • While IP-intensive industries accounted for 18.8 percent (or 27.7 percent of all jobs) directly and indirectly, of all jobs in the economy in 2010, their $5.06 trillion through a supply chain that stretches across the economy. in value added in 2010 represented 34.8 percent of total GDP. Source: „IP and the U.S Economy‟, Industries in Focus 2013. 2. 22. | KK Ko - U.S. Department of Commerce(2012)7
  • 8.
    Detailed Comments: fromhaving to sharing Provided that strengthening IPR is likely to protect copyrights and to decrease accessibility, digital copyright should be approached with the view of “from having to sharing” to achieve the economic development and to prevent potential conflicts simultaneously •The Samsung vs. Apple patent lawsuit caused great financial damages for both companies due to enormous amount of legal costs, but it is not ended yet, nor solved anything. 2013. 2. 22. | KK Ko 8
  • 9.
    Detailed Comments: FreshIP The KSFs of Gangnam Style, a worldwide hit in 2012, are the production of Crowdsourcing & Copyright sharing (From Having to Sharing) and unique distribution method • Horse dance through a process of crowd sourcing • Parody of an explosive increase - Obama Style (U.S.), Brazil Style (Brazil), Prison Style (Philippines) 2013. 2. 22. | KK Ko 9
  • 10.
    Detailed Comments: DigitalCopyright Exchange Prof. Ian Hargreaves suggested building up „Digital Copyright Exchange‟ for the copyright management of digital content and realization of growth potential for creative industries “A Digital Copyright Exchange will facilitate copyright licensing and realize the growth potential of creative industries.“ “The assessment should include exploration with design interests of whether access to the proposed Digital Copyright Exchange would help creators protect and market their designs and help users better achieve legally compliant access to designs.” “A work should only be treated as an orphan if it cannot be found by search of the databases involved in the proposed Digital Copyright Exchange.“ Source: Digital Opportunity „A Review of Intellectual Property and Growth‟ 2013. 2. 22. | KK Ko - Ian Hargreaves(2011) 10
  • 11.
    Detailed Comments: ModernisingCopyright British government announced a revised bill, „Modernising Copyright‟, which reflects requirements of the smart era on the basis of Professor Ian Hargreaves‟ report. Data analytics for Private copying non-commercial research Education Access for people with disabilities Modernising Quotation and Copyright Archiving and news reporting preservation Parody, caricature UK Public And pastiche administration Research and Copyright private study Notices • Revision details: On the assumption of Fair Dealing, making a copy without author’s permission for personal usage is permitted. For purpose of education, quotation, research, conservation and administration, reproduction and application of creative works are legally allowed. Source: Modernising Copyright: A modern, robust and flexible framework 2013. 2. 22. | KK Ko - UK Government(2012) 11
  • 12.
    Summary of Approach Basedon cloud infrastructure along with smart-suited „DCE‟ and „Modernising Copyright‟, if author can be supported to safely deal copyright and get properly paid, the healthy growth of Virtual Goods industry will be expected. Copyright protection through Cloud Infrastructure • Allowing anyone who wants to use copyrights or copyrighted materials to access but disapproving of downloads - Protecting copyrights through DRM • Allowing individual copyright holders to trade their copyrights and copyrighted materials based on Cloud IP and 1st Materials Infrastructure and to help new business opportunities without additional investment 2nd Materials Create Establishing Ecosystem for Virtuous Circle Fresh • Creating legitimate business ecosystem where fresh IP or IP newly-copyrighted materials are briskly created and distributed 3rd Materials - Contributing to get rid of root causes of copyright infringement and acquiring profits without burden of legal fees 4th Materials Required for cooperation from „the government and corporate‟ Fresh IP Flow ©: • Required for cooperation from „the government and corporate‟, Money Flow ¥: since it requires for developing governmental policies and infrastructure 2013. 2. 22. | KK Ko 12
  • 13.
    Summary of Approach ForEast Asia‟s globally leading Virtual Goods economic development, we suggest to establish Korea-China-Japan Digital Copyright Exchange, so that it can support creators to make a rational and easy deal and also to protect their copyright. „Digital Copyright Exchange for Virtual Goods‟ among South Korea & Japan & China • Implementation Schemes - Collaboratively establish and operate Korea-Japan-China Digital Copyright Exchange - Respective governments support related policy and ICT companies support related infrastructure (December, 2012, at Beijing, Korea-China Internet Board discussed about this idea) - Total ecosystem construction: from suggesting Virtual Goods and evaluating its commodities values to the investing • Expected Effectiveness - Easier checking up on the copyright information and avoiding copyright dispute - Vitalize production of high quality work and utilization of legal work - Contribute to reduction in respective country unemployment through making non-investment start-up business environment - Korea-Japan-China alliance leads East Asia‟s Virtual Goods 2013. 2. 22. | KK Ko economic development 13
  • 14.
    Appendix - 2012Global Smartphone Subscribers 2013. 2. 22. | KK Ko 14
  • 15.
    Appendix - ModernisingCopyright: A modern, robust and flexible framework Scope Amendment People will be permitted to copy content they have bought onto any medium or device that they own, Private copying strictly for their own personal use(such as transferring their music collection from CD to iPod). The Government will provide a fair basis for future licensing by modernising the current educational Education exceptions. The Government will create a more general permission for quotation of copyright works for any Quotation and news reporting purpose, as long as the use of a particular quotation is “fair dealing” and its source is acknowledged. The Government will legislate to allow limited copying on a fair dealing basis for parody, caricature Parody, caricature and pastiche and pastiche. The Government will allow sound recordings, films and broadcasts to be copied for non-commercial Research and private study research and private study purposes, without permission from the copyright holder. Data analytics for Non-commercial researchers will be allowed to use computers to study published research results non-commercial research and other data without copyright law interfering. Access for people Government will allow people with disabilities the right to obtain copyright works in an accessible form, with disabilities if there is not a suitable one on the market already. Museums, galleries, libraries and archives will be allowed to preserve any type of copyright work that Archiving and preservation is in their permanent collection and cannot readily be replaced. The existing exceptions will be widened to enable more public bodies to proactively share some third Public administration party information online, as they already can through issuing paper copies. The Government also intends to introduce a new, non-statutory system for clarifying areas where Copyright Notices there is manifest confusion or misunderstanding on the scope and application of copyright law via Copyright Notices issued by the Intellectual Property Office (IPO). Source: Modernising Copyright: A modern, robust and flexible framework 2013. 2. 22. | KK Ko - UK Government(2012) 15
  • 16.
    Thank you! 2013.2. 22. | KK Ko | Twitter: @doorsros 2013. 2. 22. | KK Ko