2013. 2. 22. | KK Ko

Modernising CopyrightPossibility 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 2

Intro: Les Militaribles

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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

Proteur: Professional+Amateur

Obtained high quality as a musical

film with casting every actors

majored in voice

Well-secured seriousness of

the original with a solid story

line, but added humor elements

Large scale and dynamic

shooting techniques hardly

seen in low cost films

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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

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Overview of Current Status

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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)

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Overview of Current Status

6

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

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Overview of Current Status

7

• IP-intensive industries supported 40.0 million jobs

(or 27.7 percent of all jobs) directly and indirectly,

through a supply chain that stretches across the economy.

Total Employment Supported by

IP-Intensive Industries, 2010

Source: „IP and the U.S Economy‟, Industries in Focus

- U.S. Department of Commerce(2012)

(unit: 1,000)

Value Added and Employment Shares of

IP-Intensive Industries, 2010

Share of GDP: IP-Intensive Industries

34.8%

• While IP-intensive industries accounted for 18.8 percent

of all jobs in the economy in 2010, their $5.06 trillion

in value added in 2010 represented 34.8 percent of total GDP.

5 Trillion

0

10000

20000

30000

40000

Patent-intensive Trademark-intensive

Copyright-intensive IP-intensive

40 million Jobs

„Intellectual Property-Intensive Industries‟ Contribute $5 Trillion, 40 Million Jobs to US

economy, nevertheless US government still seeks to strengthening the copyright protection

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Detailed Comments: from having to sharing

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•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.

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

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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

• Parody of an explosive increase- Obama Style (U.S.), Brazil Style (Brazil),

Prison Style (Philippines)

• Horse dance through a process of crowd sourcing

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Detailed Comments: Digital Copyright Exchange

“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.“

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Source: Digital Opportunity „A Review of Intellectual Property and Growth‟

- Ian Hargreaves(2011)

Prof. Ian Hargreaves suggested building up „Digital Copyright Exchange‟ for the copyright

management of digital content and realization of growth potential for creative industries

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British government announced a revised bill, „Modernising Copyright‟, which reflects

requirements of the smart era on the basis of Professor Ian Hargreaves‟ report.

Source: Modernising Copyright: A modern, robust and flexible framework

- UK Government(2012)

Private copying

Education

Quotation and news reporting

Parody, caricature And pastiche

Research and private study

Access for peoplewith disabilities

Archiving andpreservation

Data analytics fornon-commercial

research

Publicadministration

CopyrightNotices

ModernisingCopyright

UK

Detailed Comments: Modernising Copyright

11

• 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.

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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.

Summary of Approach

Copyright protection through Cloud Infrastructure

Establishing Ecosystem for Virtuous Circle

• 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

Infrastructure and to help new business opportunities

without additional investment

• Creating legitimate business ecosystem where fresh IP or

newly-copyrighted materials are briskly created and distributed

- Contributing to get rid of root causes of copyright

infringement and acquiring profits without burden of legal fees

• Required for cooperation from „the government and corporate‟,

since it requires for developing governmental policies and

infrastructure

Required for cooperation from „the government

and corporate‟

IP and 1st Materials

2nd Materials

3rd Materials

4th Materials

Fresh IP Flow ©:

Money Flow ￥\:

Create

Fresh

IP

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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.

• 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

economic development

Summary of Approach

„Digital Copyright Exchange for Virtual Goods‟

among South Korea & Japan & China

2013. 2. 22. | KK Ko

Appendix - 2012 Global Smartphone Subscribers

14

2013. 2. 22. | KK Ko

Appendix - Modernising Copyright: A modern, robust and flexible framework

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Scope Amendment

Private copyingPeople will be permitted to copy content they have bought onto any medium or device that they own,

strictly for their own personal use(such as transferring their music collection from CD to iPod).

EducationThe Government will provide a fair basis for future licensing by modernising the current educational

exceptions.

Quotation and news reportingThe Government will create a more general permission for quotation of copyright works for any

purpose, as long as the use of a particular quotation is “fair dealing” and its source is acknowledged.

Parody, caricature and pasticheThe Government will legislate to allow limited copying on a fair dealing basis for parody, caricature

and pastiche.

Research and private studyThe Government will allow sound recordings, films and broadcasts to be copied for non-commercial

research and private study purposes, without permission from the copyright holder.

Data analytics for

non-commercial researchNon-commercial researchers will be allowed to use computers to study published research results

and other data without copyright law interfering.

Access for people

with disabilitiesGovernment will allow people with disabilities the right to obtain copyright works in an accessible form,

if there is not a suitable one on the market already.

Archiving and preservationMuseums, galleries, libraries and archives will be allowed to preserve any type of copyright work that

is in their permanent collection and cannot readily be replaced.

Public administrationThe existing exceptions will be widened to enable more public bodies to proactively share some third

party information online, as they already can through issuing paper copies.

Copyright NoticesThe Government also intends to introduce a new, non-statutory system for clarifying areas where

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

- UK Government(2012)

2013. 2. 22. | KK Ko

Thank you!

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