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[ Investment > Legal Scene ] 

 

PROTECTING COMPUTER PROGRAM COPYRIGHT

 New Legislation redefines broadcasting, puts new Limits on reproduction to strengthen the position of existing copyright holders

The recent amendment to the Computer Program Protection Act (CPPA) is expected to provide greater protection for computer program copyrights and establish a foundation upon which the software industry can achieve greater development. Given the increased complexity and prevalence of program copyright infringements, the amended law grants greater authority to the appropriate government organizations for combating illegal reproduction. It also establishes new provisions defining reverse engineering, exclusive publication rights, technological protective devices as well as provisions for the imposition of heavy penalties for repeat offenders. Passed by the National Assembly in December last year, the amendment will take effect on July 29th 2000.

One of the key changes under the amended CPPA is a newly established provision (Article 2, Paragraph 9) directed toward protecting the rights of copyright holders against acts that circumvent or damage the protective devices designed to prevent the illegal reproduction of computer programs. Such devices include product IDs, personal ID, passwords, etc.

In addition, Article 12, Paragraph 6, of the CPPA defines "reverse engineering" as an act of analyzing a specific product, or of evaluating the know-how, level of technology or method of manufacture that is embodied therein in order to develop new technologies. This rule systematically allows for the reverse analysis of another's program. This may be done for the purpose of spurring computer technology development and for analytical, educational and research purposes within the scope of fair use.

Under the amended Article 16, recognition is given to exclusive program publication rights in order to grant the copyright holder the power to contest infringement by third parties. This rule was established especially to provide commercial order and security to start-up software companies. This article also applies the legal means by which funding can be provided for further software development.

A new provision under Article 34 authorizes appropriate government personnel to remove, delete or dispose of any machines, apparatus, or programs used to incapacitate technological devices designed to prevent the illegal reproduction of computer programs. This provision also allows government authorities to request cooperation from other relevant agencies.

Lastly, in addition to penal provisions already in place, the amended CPPA prescribes heavy penalties of up to five years' imprisonment or a fine of up to 70 million won for repeat offenders. Moreover, the provisions that regulate the registration of programs by electronic database organizations for the Program Deliberation and Mediation Committee (Articles 28 and 42, respectively) have been revised in the hope of reinvigorating the software industry.

 Copyright act revisions that address changes in the multimedia technology environment

The recent amendment to the Copyright Act (CA) is aimed at providing further protection to copyright holders with respect to the on-line transmission of copyrighted materials and at more clearly defining the legal parameters of "broadcasting," "performance," and "reproduction." The revised act passed by the National Assembly December 1999 is expected to at least partially answer the need for greater efficiency in the use and protection of copyrighted works in today's rapidly developing technological environment. The amendment took effect July 1st 2000.

Originally proposed in a bill submitted by the Ministry of Culture and Tourism, the major revisions to the CA are:

- Clearly defined rights for the on-line transmission of copyrighted material;
- Reduction of the permissible scope for private use;
- Inclusion of the concept of "transmission of a work within a linked area owned by a single entity" in the definition of performance;
- Revision of the copyright registration system; and
- Reinforced penalties for copyright infringements

 The On-line Transmission of Copyrighted Works

The previous provisions of the CA concerning the right to broadcast, reproduce or distribute copyrighted works (hereinafter referred to as "works") did not sufficiently define the scope of electronically transmitted copyrighted material because the definitions for "broadcasting," "reproduction" and "distribution" were made without considering the characteristics of on-line transmission. For example, the CA previously defined "broadcasting" as the "uni-directional transmission of a work intended for simultaneous reception by the public," "reproduction" as the reproduction of works in "a tangible media of expression," and "distribution" as the transfer by "assignment or rental of a work to the public." As such, "on-line transmission" was not covered under these definitions because such transmission does not fall within the scope of "uni-directional," "tangible media," or "by assignment to the public." The amended CA thus recognizes a separate right for on-line transmission, taking into consideration the characteristics of digital transmission, i.e., delayed timing, one-to-one transmission, and multi-directional transmission.

Moreover, the amended CA defines "electronic transmission" under broadcasting as ‘°The provision of works for use or transmission by wire or wireless communication to the general public at a selected time and place" (Article 2, paragraph 9, subparagraph 2). The CA also recognizes the right of a copyright holder to transmit his or her own work.

 Reduction of the Permissible Scope for Private Use

Given the capacity of digital technology to create perfect copies of works, there has been an urgent need to establish a mechanism whereby rights of the copyright holders can be protected from the private reproduction of a work by digital means. Many have also recognized the need for the law to mandate that the public use of copy machines for the purpose of business or personal profit be permitted only upon the consent of the copyright holder.

Under the amended CA, Article 27 (Reproduction for Private Use) provides the copyright holder with the right to compensation in cases of infringement by the digital reproduction of protected sounds or images. It also makes it permissible to reproduce a work already made public, provided that it is for personal use or within the limited scope of similar purpose and not for commercial use. This rule prohibits, however, the reproduction of works by means of a copying machine for use by the general public. The electronic transmission and reproduction of works by a library for the purpose of maintaining the library's database are allowed in the revised law provided that the library users view such materials from computers within the confines of the building.

 Redefining "broadcasting" and "performance"

The primary distinction between "performance" and "broadcasting" prior to the amendment was based on the concept of "the same unintercepted area." The clause ‘°the mere amplified transmission of sounds within the same unintercepted area" was originally excluded from the scope of broadcasting in the previous CA, and consequently rendered the distinction between broadcasting and performance impractical.

The amended CA therefore omits the concept of  "the same unintercepted area" from the definition of broadcasting and redefines performance as the presentation of a work or a reproduction to the general public through acting, ...or other means (Article 2, Paragraphs 3 and 4). Such presentation also includes the act of transmitting a work between linked entities within an area owned by the same person. (For example, the transmission of a copyrighted work between two or more floors of a building owned by a single entity).

The amended CA also redefines broadcasting under Article 2 to include the concept of simultaneity, wherein it reads, "the transmission of information, sounds, images or other forms of data by wire or wireless communication for the purpose of simultaneous reception by the general public." Another newly established provision stipulates that works of applied art, including paintings, calligraphic works, designs, sculptures crafts, works of applied art and other artistic works, are independently copyrightable.

 Copyright Registration System

Information concerning copyrighted materials and copyright holders under the amended CA may be registered and that information will be made available to the general public. To this end, the CA stipulates that the Minister of the Ministry of Culture and Tourism will publish an official copyright gazette.

KIM & CHANG
Tel: (82-2) 3703-1114, Fax: (82-2) 737-9091/3
E-mail:
lawkim@kimchang.com

 



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