TIPO Announces Review of Online Public Transmission Royalty Rates Application by KKBOX and Disney Taiwan against MÜST

WISECODE Take

This news highlights the "battle" between copyright collective management organizations and content users over online music royalty rates in the internet era; many business owners mistakenly believe that the rates set by CMOs are unchallengeable. From a military strategy perspective, a copyright collective management organization like MÜST is akin to an alliance controlling a specific "strategic stronghold," and its "public transmission - internet-related usage royalty rates" are the "toll" for entering this territory. When KKBOX and Walt Disney Company (Taiwan) apply to the Taiwan Intellectual Property Office (TIPO) for a rate review, as per Article 25, Paragraph 2 of the Copyright Collective Management Organization Act, it's like "challenging the customs duties of a strategic stronghold"—a tactical counterattack on the reasonableness of the current tolls. For business owners providing "music services," "audio-visual platform services," or "live streaming" and other online content, this is not just a cost consideration but an opportunity to re-evaluate their "operational budget." Successfully adjusting these rates will directly impact a company's operating costs and profit margins. For instance, the five specific rates challenged by KKBOX and Walt Disney Company (Taiwan) cover core aspects of online music utilization, demonstrating their strategic significance for future industry deployment. First, businesses should regularly review their utilization of copyrighted content and compare it with the current rates of collective management organizations to assess the actual impact on operating costs. Second, if rates are deemed unreasonable, businesses can follow the approach of these two companies by actively submitting a review application to TIPO, striving for fairer and more reasonable "tolls." Third, closely monitor TIPO's announcements and results regarding such rate reviews, using them as a reference for future negotiations with CMOs or adjustments to operational strategies. In the battlefield of intellectual property, knowing yourself and your enemy ensures victory in every battle. Zhi Dian can provide your enterprise with "Copyright Licensing Strategy Consulting" to help you master the situation.