Article 1 (Purpose)

The purpose of these Terms and Conditions is to set forth the terms of use and conditions of license to be observed between the Recording Industry Association of Korea (hereinafter referred to as the “Association”) and any person who desires to use the rights of a record producer (hereinafter referred to as the “User”) with respect to the right of reproduction and distribution under Article 67 and the right of transmission under Article 67-3 of the Copyright Act, which are entrusted to and managed by the Association (hereinafter referred to as “Trust Management”).

Article 2 (Conclusion of Agreement)

1. ① The User shall conclude a sound source use agreement with the Association in writing, and the “Association” shall not refuse to approve the use of copyrighted works, etc. without a justifiable reason, except in the cases enumerated in Paragraph 2 of this Article.
2. ② However, the “Association” may refuse to approve the use if the User’s use of the sound source copyrighted work falls under any of the following subparagraphs:
   • 1. In case of use in violation of the laws and regulations and the respective regulations of the Association
   • 2. In case the User impairs fair competition with other users by entering into an exclusive or similar use relationship, explicitly or implicitly, with a rights holder other than the Association in the use of the sound source copyrighted work
   • 3. In case a person who is in arrears with royalties to the Association or a corporation of which he/she is the representative requests approval for use
   • 4. In case there is a clear concern that the order of transactions will be harmed in light of other commercial practices

Article 3 (License)

1. ① The conditions of the license shall be determined through consultation between the Association and the User, and the royalties shall be governed by the royalty collection regulations approved by the Minister of Culture, Sports and Tourism.
2. ② The User shall use the trust-managed sound source within the scope licensed by the Association and shall not, under any circumstances, assign the right to use the trust-managed sound source to a third party for reuse.
3. ③ The copyrighted works licensed by the Association shall be limited to those for which the User has applied and been granted permission among the music works managed by the Association.

Article 4 (Indication of Title, etc.)

When using a music work, the User shall indicate the name of the record producer, the title of the work, the album title, the lyricist, the composer, and other titles requested by the Association. However, this shall not apply in unavoidable cases.

Article 5 (Notification of Business Change)

The User shall obtain the permission of the Association if there is any change in the method of use, area of use, etc.

Article 6 (Modification and Amendment of Agreement)

1. ① The Association and the User shall modify or amend the agreement through mutual consultation in accordance with the amendments if the relevant regulations, such as the current Copyright Act and the Association’s royalty collection regulations, are amended.
2. ② If the Association changes the royalty collection regulations with the approval of the competent authority and there is a change in the increase or decrease of royalties, the Association shall notify the User thereof, and the increase or decrease of royalties shall be determined through mutual consultation.
3. ③ If it is necessary to amend some of the provisions of this Agreement or add separate provisions due to the occurrence of matters not anticipated by both parties at the time of concluding the agreement, this Agreement may be modified and amended by agreement with the other party.

Article 7 (Notification of Copyrighted Works for which Trust Agreement is Terminated)

If the trust agreement for a copyrighted work under its management is terminated, the Association shall notify the business operator of the details of the terminated copyrighted work in writing or by e-mail, and shall announce it on its website so that the business operator can confirm it.

Article 8 (Royalties)

The User shall pay the rate or amount stipulated in the Association’s royalty collection regulations as royalties for the use of music works. However, if there is no provision in the Association’s royalty collection regulations, the rate or amount shall be determined by agreement between the Association and the User.

Article 9 (Refund of Unused Royalties)

If the User has been granted a license but is unavoidably unable to use it, the User may claim a refund of the royalties within 10 days from the date on which he/she became unable to use it.

Article 10 (Provision of Related Data, etc.)

1. ① When using a copyrighted work managed by the Association, the User shall notify the Association of the use report of the copyrighted work in writing without delay.
2. ② The User shall prepare accounting data, number of members, etc. requested by the Association for the calculation of sales, etc. on a monthly basis and notify the Association thereof within 2 months after providing the service. However, the User may extend the period in consultation with the Association.
3. ③ The User shall install the Association’s integrated system so that the usage details of the Association’s music works can be automatically transmitted. However, if automatic transmission is difficult due to the User’s circumstances, it may be submitted as an electronic file in consultation with the Association.

Article 11 (Confirmation of Use Status)

1. ① The Association may request an on-site inspection or written data at least once a year for necessary matters to grasp the use status of the User’s managed copyrighted works.
2. ② If the Association conducts an on-site inspection or requests written data as specified in the preceding paragraph, it shall notify the User 10 days before the date of the on-site inspection or request for written data, and in this case, the User shall provide all necessary cooperation.

Article 12 (Surcharge for Arrears)

1. ① If the User fails to pay the royalties by the agreed date, the Association may impose a surcharge by adding 3% of the royalties to be paid for the first month, and from the following month until payment, it may impose a surcharge for arrears by adding 0.022% daily. However, the period of the additional surcharge shall not exceed 12 months.
2. ② The Association may reduce or exempt the surcharge for arrears imposed on the User in any of the following cases:
   • 1. In case it is recognized that the royalties cannot be paid by the agreed date due to a natural disaster, etc.
   • 2. In case the User has requested an extension of the royalty payment deadline in advance for a justifiable reason

Article 13 (Withdrawal of Agreement)

The Association or the User may withdraw the agreement within 10 days if this agreement is concluded and the User has not started the service.

Article 14 (Termination of Agreement)

1. ① If the other party fails to perform all or part of these regulations and the agreement, the Association or the User may demand performance by setting a period of 7 days or more, and may terminate this agreement upon non-performance.
2. ② If the termination of this agreement is notified pursuant to the provisions of the preceding paragraph, it shall be deemed to have been terminated when the other party receives the notification.
3. ③ Upon receipt of a notice of termination of the agreement from the Association, the User shall immediately cease using the Association’s sound source copyrighted works, and if he/she continues to use them after termination, he/she shall be held civilly and criminally liable for violation of the Copyright Act.

Article 15 (Measures in Case of Infringement)

1. ① If the User infringes on the trust rights managed by the Association by exceeding the scope of the use agreement, the Association may terminate the use agreement regardless of the license period.
2. ② If the User’s infringing act exceeding the scope of the use agreement recurs, the Association shall terminate the use agreement and suspend the approval of use for the next 3 years.

Article 16 (Security Deposit)

The Association may receive a security deposit or an insurance policy within a limit not exceeding 10,000,000 KRW at the time of concluding the use agreement to secure the User’s obligations arising from default. However, if the average monthly royalty exceeds 10,000,000 KRW, it may receive a security deposit (insurance policy) for 3 months of the average monthly royalty at the time of renewing the agreement.

Article 17 (Damages)

If the agreement is terminated due to a cause attributable to the other party, the Association or the User may claim the amount of damages resulting from the termination of the agreement and a penalty of 10% of the amount of damages as compensation for damages.

Article 18 (Jurisdiction)

The court having jurisdiction over the address of the defendant shall have jurisdiction over any lawsuit concerning the agreement concluded under these Terms and Conditions. However, if otherwise agreed between the parties, the agreed court shall be the competent court.