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| ▣ Article 1 (Purpose) |
| The purpose of this terms and conditions shall be to provide for the terms and conditions of copyright management contract between trustor and the Korea Music Copyright Association ("Association"), which was established to protect the music copyrights of musical authors ("Trustor") such as lyricists, composers, arrangers, and music publishers who entrust copyrights ("Copyright") for musical works and to secure a lively use of such copyright. |
| ▣ Article 2 (Procedure of Entering into Copyright Management Contract) |
① A person intending to entrust a Copyright shall prepare an application for Copyright management contract and, attaching necessary materials, apply to the Trustee.
② When accepting management of a Copyright, the Trustee shall accept on the condition that the Trustor pay management contract application fee under separate regulations prescribed by the board of directors.
③ When entering into a Copyright management contract ("this Contract") with Trustor, the Trustee shall immediately deliver a trust certificate or other documents proving the existence of a trust. |
| ▣ Article 3 (Entrusting of an Author's Property Right) |
① Trustor shall transfer to Trustee during the term of this Contract, as trust property, a Copyright which the Trustor currently owns or will acquire, and Trustee shall manage the entrusted Copyright for Trustor and distribute to Trustor royalties, etc. obtained from such management.
② Notwithstanding paragraph ①, Trustor may transfer all or part of the Copyright under prior approval of the Trustee, in each of the following circumstances.
1. Trustor transfers Copyright for the works which he/she created under special request of a client, such as a company song or a school song, to the client
2. Trustor transfers Copyright to a music publisher on the condition that the latter re-transfer the Copyright to Trustee, for the purpose of using and developing the works
③ Trustor may designate a third party as beneficiary, after prior consultation with the Trustee
④ Concerning the Copyright which Trustor entrusts to Trustee under paragraph ①, Trustor shall neither permit use by a third party nor exercise rights, under any circumstances. |
| ▣ Article 4 (Trust Period of Copyright) |
① This Contract shall have a period of five years from the date of Contract and in the absence of objection from either party, shall continue to extend by five years automatically; provided, however, that when the period of Trustor's Copyright is less than five years, such period shall be period of this Contract.
② This contract shall be extended automatically under same terms and conditions as before unless each party gives the other party a written notice to the contrary at least three months before the end of this Contract. |
| ▣ Article 5 (Scope of Copyright Management) |
Trustee shall manage Copyright which was entrusted ("Trust Copyright") within the following scopes.
1. Public performance
2. Public transmission (broadcasting, transmission, digital audio transmission)
3. Reproduction (audio recording, video recording, music score publication, etc.)
4. Distribution
5. Lease
6. Receiving rewards for educational books
7. Other scopes of management under the Copyright Act |
| ▣ Article 6 (Representations and Warranties for Copyright) |
① Trustor represents and warrants that Trustor is the holder of Copyright over the works entrusted to the Trustee, and that Trustor is not in violation of another's Copyright.
② Trustee may request Trustor to provide materials required for the representations and warranties made in paragraph ①, in which case Trustor shall provide such materials immediately. |
| ▣ Article 7 (Management and Sub-trust outside Korea) |
① Trustee may sub-trust to a foreign Copyright management organization for the purpose of management of Trust Copyright outside Korea.
② If necessary to perform its duties, Trustee may sub-trust part of the rights under Article 5 to the Korea Reprographic and Transmission Rights Association, an incorporated association. |
| ▣ Article 8 (Collection and Distribution of Royalties from the Works) |
| Trustee shall collect royalties from the works and distribute them to the Trustor, pursuant to collection regulations and distribution regulations approved by competent authorities. |
| ▣ Article 9 (Method of Managing Trust Copyright and Royalties) |
① Trustee shall comply with the articles of incorporation and this terms and conditions, and manage Trust Copyright and the royalties from the works belonging to such Copyright, pursuant to the resolution of the general meeting or the board of directors.
② Trustee shall manage Trust Copyright by categories; provided, however, that Trustee may use other methods if he/she obtains approval of competent authorities concerning the collection regulations and the distribution regulations. |
| ▣ Article 10 (Collection of Management Expenses) |
① Trustee shall deduct management fee approved by competent authorities from royalties for the works received from the management of Trust Copyright.
② Notwithstanding paragraph ①, Trustee may make advance payment of the amount comparable to management fee, as an expense necessary to perform its duties, out of the trust property such as royalties.
③ Trustee shall take measures for the surplus when its total revenue including royalties exceeds its operating expense for a fiscal year, or the loss when expenditure exceeds revenue, pursuant to the resolution of the general meeting.
④ Trustee shall apply management fee, trust contract application fee, interests from all assets, and other revenues not covered by Trustee's regulations, to operating expenses. |
| ▣ Article 11 (Location of Trustee's Operation) |
Trustee shall conduct business in the following locations.
1. Within Korea
2. Operation areas of foreign Copyright management organizations which are entrusted with management of Copyright |
| ▣ Article 12 (Rights to Lawsuit) |
| Trustor shall neither file a civil or criminal lawsuit concerning Trust Copyright nor make settlement or withdrawal in a lawsuit filed by the Trustee. |
| ▣ Article 13 (Reservation and Restriction of Management) |
① Concerning the scope of Trustee's management of Trust Copyright under Article 5, Trustor may make reservation or restriction mentioned below, by prior approval of the Trustee.
1. Trustor may designate recording user or publisher for works which has not been sold as recordings or publications; provided, however, that this designation shall only be effective for one year from the initial sale of such recordings or publications.
2. When works created by Trustor under special request from a client, such as company song and school song, are used within the scope proposed by the client as the purpose of request.
3. Trustor may produce, on a non-profit basis, a commemorative record (phonogram) using his/her works in order to distribute for free within a limited scope
② When Trustor allows reserved or restricted activities above to a third party during the term of reservation and restriction, Trustee may terminate such reservation and restriction immediately. |
| ▣ Article 14 (Copyright Registration and Registration Expense) |
① Trustor shall bear the following expenses
1. Trustee registers Trust Copyright with competent authorities at Trustor's request
2. Procedure concerning termination of this Contract
② The above expenses may be deducted from the royalties of works received from the management of Trust Copyright. |
| ▣ Article 15 (Transfer and Pledging of Claim for Distribution) |
| In order to transfer or pledge a claim for distribution of royalties from the works, Trustor shall have prior consultation with Trustee. |
| ▣ Article 16 (Time to Calculate and Distribute Royalties) |
① Trustee shall distribute royalties received from the management of Trust Copyright to Trustor pursuant to royalties distribution regulations.
② When distributing royalties, Trustee shall prepare and deliver to Trustor details of distribution and a statement of royalties.
③ When Trustee has monetary claims against Trustor, Trustee may deduct such claims from royalties to be distributed.
④ Claims for distribution of royalties, etc. under this Contract shall expire after ten years from the date of their occurrence. |
| ▣ Article 17 (Withholding of Collection and Distribution of Royalties) |
Trustee may withhold collection or distribution of royalties in the following circumstances.
1. Where a civil or criminal lawsuit concerning the belonging of Copyright has been filed
2. Where a civil or criminal lawsuit concerning the infringement of Copyright has been filed
3. Where the destination of distribution or applicable distribution rate is unclear
4. Where there are recognized doubts the belonging, etc. of Copyright
5. Where Trustee has claims against Trustor |
| ▣ Article 18 (Succession of This Contract) |
① Where Trustor dies or disappears due to merger, the heir or the newly incorporated legal person may succeed to the rights and obligations of Trustor pursuant to this Contract.
② An heir or a legal person which is the principal successor, under paragraph ①, shall report the fact of succession immediately.
③ Where there are multiple successors under paragraph ①, it is required that one of the successors be selected as principal successor and be reported. |
| ▣ Article 19 (Termination of This Contract) |
① Trustee may terminate this Contract if Trustor loses all of the Trust Copyright or if such Copyright ceases to exist
② Trustee may terminate this Contract under one of the following circumstances.
1. Trustor violates paragraphs ② and ④ of Article 3 of this Contract.
2. Trustor transfers or pledges claim for distribution without prior consultation with Trustee, in violation of Article 15 of this Contract.
3. Trustor receives royalties by falsely reporting Copyright belonging to another, or transfers Trust Copyright to a third party (double transfer)
③ Where personal, unavoidable reasons on the part of Trustor makes it impossible to maintain this Contract or Trustee fails to perform all or part of this Contract, Trustor may make a written demand that Trustee perform the above within a period of 15 days or more and if the Trustee fails to perform within such period, Trustor may terminate this Contract.
④ Termination of this Contract shall become effective when the other party receives notice of termination.
⑤ Matters on a new management contract with a person whose management contract was terminated under paragraph ② of Article 24 shall be determined by separate regulations prescribed by the board of directors. |
| ▣ Article 20 (Expiration of This Contract) |
| Trustee shall pay unpaid royalties, and deliver statement for such unpaid royalties, to Trustor within six months of the expiration or termination of this Contract. When receiving the above, Trustor shall return trust certificate or other documents demonstrating the existence of trust and receive the Copyright back, immediately. |
| ▣ Article 21 (Notice of Trustee) |
① Trustee shall make remittance under this Contract to where Trustor has reported. Demand and other notices shall be made to the address reported by Trustor.
② Trustee may withhold remittance, demand or other notices under paragraph ① if one of the following occurs.
1. Report under sub-paragraphs 2 and 3, paragraph ① of Article 22 is not implemented
2. Demand or other notices sent to the address reported by Trustor are confirmed not to have arrived three times or more consecutively
3. Remittance to where reported by the beneficiary is confirmed not to have arrived. |
| ▣ Article 22 (Trustor's Obligation to Report) |
① When one of the following occurs, Trustor shall report to Trustee immediately and take applicable measures.
1. Loss of trust certificate or other documents demonstrating the existence of trust
2. Change of remittance destination, name and personal address
3. Merger, dissolution, or name change of Trustor, which is a legal person or other organization
4. Change of representative, agent or a person vicariously receiving distribution, of the Trustor
5. When Trustor releases new works or acquires Copyright
6. Causes for reservation or restriction of scope of management of Trust Copyright cease to exist
② Trustee shall not be responsible for damage due to Trustor's neglect of report under paragraph ②. |
| ▣ Article 23 (Change of Management Method) |
| After changing the management method of Trust Copyright described in Article 8 under approval of competent authorities, Trustee shall make an immediate announcement. |
| ▣ Article 24 (Amendment of Terms and Conditions of Management Contract) |
① After amending this terms and conditions by resolution of the general meeting and approval of competent authorities, Trustee shall make an immediate announcement.
② Trustor objecting to the amendment of terms and conditions under paragraph ① may terminate this Contract within three months of such announcement date.
③ Termination under paragraph ② shall be done by a written notice.
④ If a right of termination is not exercised within three months of the date of announcement, Trustor shall be deemed to accept the amendment under paragraph ①, and Trustor entering into management contract before this amended terms and conditions takes effect shall be deemed to have entered into management contract under this amended terms and conditions without a separate procedure. |
| ▣ Article 25 (Responsibility for Breach of Contract, etc.) |
① Trustor or Trustee shall be responsible for the full damage of the other party on account of breach of this terms and conditions on his/her part.
② Trustee may claim damage against Trustor if Trustor disrupts Trustee's business of copyright management by defamation or libel.
③ Trustee may deduct damages under paragraph ② on a priority basis from royalties received from the management of Trust Copyright. |
| ▣ Article 26 (Public Notice) |
| Public notice under this terms and conditions shall be done by posting on the Trustee's bulletin or Internet homepage. |
| ▣ Article 27 (Court of Jurisdiction) |
| Lawsuit arising out of or related to the management contract entered under this terms and conditions shall be filed in the court having jurisdiction over the defendant's address. |
| ▣ Article 28 (Supplementary Provisions) |
| Trustor who entered into this Contract shall not be hired as employee of this Association. |
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| ▣ Article 1 (Effective Date) |
This terms and conditions shall take effect from the date of approval (Mar 18, 2009) by competent authorities. |
| ▣ Article 2 (Transitional Provision on Amending Copyright Management Scope under Article 5) |
Article 5 shall be amended so that a trustor can choose the scope of trust copyright management after the enactment of Copyright Management Business Act. |
| ▣ Article 3 (Transitional Provision on Article 28) |
Employee hired before this amendment shall maintain employee status until he/she resigns. |
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