It was shared at Korea - China Government Internet Round Table and BizBar community in Kushu, Japan. Inspired by Dr. Jung Ji Hoon, supported by Jae Yeon Kim and summarized by Song Yuri

1. 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

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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. Appendix - 2012 Global Smartphone Subscribers
2013. 2. 22. | KK Ko 14

15. 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

16. Thank you!
2013. 2. 22. | KK Ko | Twitter: @doorsros
2013. 2. 22. | KK Ko