The Taiwan Intellectual Property Office (TIPO) announced that Netflix Inc. filed an application on August 17, 2026, pursuant to Article 25, Paragraph 2 of the Copyright Collective Management Organization Act. The application requests a review of the royalty rate for "7. Games" under the "Public Transmission - Internet-related Use Royalty Rates" established by the Music Copyright Society of Chinese Taipei (MÜST). This case arose from Netflix's objections to current music licensing rates after expanding its services into cloud gaming.
While some may interpret this as a broad conflict between streaming giants and the music industry, the scope of this review is strictly limited to public transmission rates under the "Games" category. It does not affect licensing fees for video streaming, music streaming, or digital advertising. If your business is not involved in game development or interactive game platforms, this dispute will have no impact on your operations or licensing costs. However, for cloud gaming and interactive media services, the outcome will serve as a critical benchmark for determining future music licensing rates in Taiwan.
For legal and product executives developing cloud games or integrating interactive game features into apps, two actions should be taken this week. First, review the background music used in your digital products to confirm whether "public transmission" rights are covered and clarify the current rate classification. Second, if your business model aligns with Netflix's interactive offerings, monitor TIPO's review progress and evaluate whether to apply to participate in the review proceedings to secure reasonable rates aligned with your commercial interests.