Terms of service

Chapter 1. General Provisions

Article 1 (Purpose)

The purpose of these Terms and Conditions is to set forth the rights, obligations, responsibilities and other matters concerning the procedures for using the service between the Company and the Member regarding the services for sales and brokerage of the right to claim participation in copyright fee, and other information service (the “Services”) provided on our website (https://www.musicow.com) (the “Site”) which is operated by Musicow, Co., Ltd. (the “Company”).

Article 2 (Definition)

1. The term “Site” means a virtual business site or service space where the Company is allowed to trade property rights using information and communication facilities such as computers in order to provide Services to the members. It will refer to the following sites where Member can use the Services using the account of the Member (ID and Password). In addition, it will mean the name of the operator who operates the Site (*Musicow: www.musicow.com)

2. The term “Member” means a person who enters into a use contract with the Company in accordance with these Terms and Conditions and uses the Services on the Site operated by the Company.

3. The term “ID” means a combination of letters and numbers determined by the Member and approved by the Company for identification and use of the Services of the Member.

4. The term “Password” means a combination of letters or numbers determined by the Member to confirm the identity of the Member with ID assigned by the Company and to protect the confidentiality of the Member.

5. The term “Copyright Trustor” means a legal entity that transfers the copyrighted property rights acquired on the condition of trust from the copyright holder to the Company for sale on the Site in the form of a “Right to Claim Participation in Copyright Fee”. As of now, it will refer to Musicow Asset Co., Ltd., a subsidiary wholly owned by the Company.

6. The term “Right to Claim Participation in Copyright Fee”, in entrusting the copyrighted property rights transferred by the copyright holder to the copyright trust service provider on the condition of trust, means 1) royalty fee that the copyright trust service provider collects from the copyright work user and distributes to the Company through Copyright Trustor, 2) royalty fee that is separately collected by the copyright trust service provider mentioned in 1) above from countries other than Korea through a contract executed with a music publisher who engages in copyright brokerage service (the “Publisher”), and 3) the claim on the Company that the Member acquires when the Company sells (including sale by auction) the royalty fee under the Copyright Trustor’s rights acquired by signing a transfer agreement related to the copyright to the Member in accordance with these Terms and Conditions and the use contract.

7. The term “Cash” means cash (Korean Won) deposited with the Company and converted into the unit set in the online wallet (function) provided by the Company as prescribed by these Terms and Conditions, the individual terms and conditions (if any) and the use contract for the purpose of use (payment) by the Member in the sale Right to Claim Participation in Copyright Fee, and one Cash has a value equivalent to one Won.

8. The term “Termination” means that the Company or the Member terminates the validity of the use contract for the future.

9. The terms used in these Terms and Conditions but not defined in Article 2 hereof will have the meaning defined in the relevant laws and regulations as well as service-specific guidelines, and otherwise in accordance with general trade practices.

Article 3 (Notice and Amendment of Terms and Conditions, etc.)

1. The Company will post these Terms and Conditions on the main page of the Services so that the Member can easily read it. However, the user may read the contents of these Terms and Conditions through the hyperlinked site.

2. The Company may amend these Terms and Conditions to the extent of not violating relevant laws, such as the Act on the Regulation of Terms and Conditions, the Act on the Promotion of Information and Communications Network Utilization, and the Protection of Information (“Act on the Information and Communications Network”).

3. In the case of amendment, the Company will post notice on the amendment from seven (7) days before the enforcement date to the previous date of enforcement, stating the date of enforcement and the reasons in accordance with Paragraph 1 for its effect. However, in the case of an amendment unfavorable to the Member, the Company will notify it with the grace period of at least thirty (30) days or more. In this case, the Company will indicate the amended parts by comparing the amended version with the existing version so that the Member can easily understand it.

4. Upon posting or notifying the Member of the amendment as set forth in the previous Paragraph, even if the Company clearly notifies the Member of the fact that if the Member does not express one’s intention within the seven (7) days, then the Member will be deemed to have consented to the amendment, if the Member fails to clearly express one’s rejection, the Member will be deemed to have consented to the amendment.

5. If the Member does not agree to the amendment, then the amended Terms and Conditions may not be applied to the Member by the Company, and in this case, the Member may terminate the use contract. However, if there are special circumstances that the existing Terms and Conditions cannot be applied, the Company may terminate the use contract. In this case, the Company will notify the Members of the fact in the manner specified in Article 17 hereof (Notice to Members).

6. These Terms and Conditions will be the basic terms and conditions of the service use contract to be entered into by and between the Company and the Member. If necessary, the Company may set and notify the matters applicable to a specific service (“Individual Terms and Conditions”) in advance. If a Member agrees to these Individual Terms and Conditions and uses certain services, the Individual Terms and Conditions will take precedence and these Terms and Conditions will have a supplementary effect. Paragraph 3 and 4 above will apply mutatis mutandis to the change in the Individual Terms and Conditions, unless otherwise specified in the Individual Terms and Conditions. Consent requested from the Member in the application process at the time of purchasing (including auction) and selling the Right to Claim Participation in Copyright Fee on the Site (the “Consent”) will be considered as the Individual Terms and Conditions.

Article 4 (Relations with Applicable Laws and Regulations)

1. The matters not specified in these Terms and Conditions or the Individual Terms and Conditions will be governed by the provisions of the relevant laws and regulations, such as the Act on Telecommunications Business Act, Framework Act on Electronic Document and Electronic Commerce, Act on Information and Communication Network, Act on the Consumer Protection in Electronic Commerce, Etc., and Copyright Act, etc. and general commercial practice.

2. In using and providing the Services, the Company and the Members will comply with the relevant laws and regulations, such as the Act on the Consumer Protection in Electronic Commerce, etc., Framework Act on Electronic Document and Electronic Commerce, Framework Act on Consumer, Fair Labelling and Advertising Act, Act on the Information and Communication Network, and Copyright Act, etc.

Chapter 2 Use of Service

Article 5 (Conclusion of Use Contract)

1. The use contract will be concluded when a person who wishes to register as a member (the “Subscriber”) consents to the Terms and Conditions and applies for membership, and the Company approves such application.

2. In principle, the Company will approve the use of the Services for the Subscriber. However, the Company may not approve the application or terminate the use contract thereafter for the following cases.

① When the Subscriber has previously lost one’s membership according to these Terms and Conditions, except case that he/she obtains approval to re-register as a Member of the Company. ② When the Subscriber does not use a real name or use the name of another person. ③ When the Subscriber provides false information or fails to prove information requested by the Company. ④ When the approval cannot be given due to the fault on the Member’s part or when the Subscriber applies for the membership violating all other prescribed regulations.

3. Upon applying for membership under Paragraph 1, the Company may request verification of real name and identity verification through a professional institution according to the type of membership.

4. The Company may withhold approval if there is no equipment available for Services, or if there is a technical or business problem.

5. In the case of not accepting or withholding the approval for membership in accordance with Paragraphs 2 and 4 above, the Company will, in principle, notify the Subscriber of it.

6. The date of the use contract will be the stated by the Company indicating completion of the subscription in the process of application.

7. A Member will be classified into individual Members and corporate Members, and the members may be classified by level for differentiated use of Services, the benefits, or the collection of service fees according to the Company’s policy.

Article 6 (Provision and Interruption of Services, Etc.)

1. The Company will provide the following Services to the Members.

① Transaction service for the Right to Claim Participation in Copyright Fee equivalent to the shares of copyrighted property rights (the “Platform Services”) i. The Company will divide the Right to Claim Participation in Copyright Fee transferred by the Copyright Trustor, and then sell it (including sales by auction) to the Members according to these Terms and Conditions and the use contract. In addition, with respect to the Right to Claim Participation in Copyright Fee, in addition to the royalty fee to be settled on a normal and regular basis by the copyright trust service provider and the Publisher on a monthly basis, the Company may calculate the royalty fee (royalty fee that whose settlement time is unpredictable due to lump-sum payment of unpaid amount by the reason for legal dispute, etc., lack of settlement information and delay in confirmation) to be settled for abnormal reasons on a irregular basis as the Company deems it appropriate considering the timing of service delivery and retrospective application on the basis of the occurrence of copyright fees. ii. The Right to Claim Participation in Copyright Fee acquired by a Member will be the claim for royalty fee for copyright works collected by the copyright trust service provider who manages the copyrighted property rights and distributed to the copyright holder, and the royalty fee for the copyright work collected by copyright trust service provider through a contract entered into with the Publisher (the “Publisher”) who is engaged in the brokerage service of copyright in foreign countries other than Korea, and the royalty fee separately collected, which the Company divides into lots and sells in the relationship with the Copyright Trustor and/or its Members. Accordingly, the copyright right itself will be reserved by the Copyright Trustor, and the Member may not exercise any and all other rights as the copyright holder other than the claims set out in these Terms and Conditions. Provided, however, in case the Company is unable to perform all or part of its obligation to pay a Member for his/her Right to Claim Participation in accordance with the Terms and Conditions due to the rehabilitation proceeding or bankruptcy filing, the Copyright Trustor may be jointly and severally liable for or take on the Company’s such debts. iii. A Member will apply for a purchase of the Right to Claim Participation in Copyright Fee through the Platform Services, and the Member will fully read and understand the contents of the copyrighted property rights, information on copyright fee, characteristics, procedures and method that the Company announces and provides on the Site for the sale of Right to Claim Participation in Copyright Fee. iv. The Company will settle and distribute the royalty fee to the Member who acquires the Right to Claim Participation in Copyright Fee after receiving the royalty fee from the Copyright Trustor who is paid by the copyright trust service provider and the Publisher, and the Copyright Trustor may be registered as the trustor of the copyright work at the request of the copyright trust service provider for the settlement and distribution of the royalty fee. A Member may delegate solely to the Company all the matters concerning the settlement and distribution of the money to be paid under the Right to Claim Participation in Copyright Fee, and may not ask settlement of the royalty fee directly to the Copyright Trustor, the copyright trust service provider and the Publisher. Please refer to the Consent given at the time of purchase for specific settlement and distribution. v. The Right to Claim Participation in Copyright Fee purchased by the Member from the Company through the Platform Services (including sales by auction) may be freely transferred to other Members brokered by the Company through the Platform Services. However, except for the case through the Platform Services, the Right to Claim Participation in Copyright Fee may not be re-assigned, and the Company will not be liable or responsible for any problems caused thereby. vi. The Company may establish and introduce the wallet function in a reasonable and appropriate manner for the Platform Services. As a result, the Company may allow the Member to store (charge) one’s cash in the wallet of one’s name, and allow the Member who meets certain requirements related to storage (charge) of Cash to trade the Right to Claim Participation in Copyright Fee and to use other platform service. When the Company wants to set up the wallet function, the Company will notify the Member of the detailed criteria in advance. However, setting up (operation) of the wallet function will be decided by the Company at its sole discretion, and the Member cannot request the Company to set up (operate) the wallet function. On the other hand, purpose of setting up and operating a cash conversion and wallet storage function of Cash (Korean Won) is to enhance the convenience of the Member in trading the Right to Claim Participation in Copyright Fee and to create a smooth trading ecosystem. Charging and storage of Cash will be considered as deposit of Cash (Korean Won), it will not be considered as electronic money, prepaid electronic payment means or other electronic payment means under the Electronic Financial Transactions Act. A Member may not use the Cash for any purpose other than trading the Right to Claim Participation in Copyright Fee. ② Other Services: All other Services, such as PR services, provided through the Site of the Company, in addition to the Company’s Platform Services

2. A Member may use the Services provided by the Company using one’s ID and Password, and may purchase (including auction) or sell the Right to Claim Participation in Copyright Fee using such Services.

3. The Member acknowledges that the Right to Claim Participation in Copyright Fee, which is a different interest in the music work, which is the subject of the Right to Claim Participation in Copyright Fee acquired by the Member, is subject to free transaction, and the Member may not raise any objection to it.

4. If a Member purchases or sells the Right to Claim Participation in Copyright Fee through the Platform Services, the transaction will be completed through the transaction protection service provided by the Company. The Company will not be liable or responsible for any damages caused by violation thereof.

5. The Company may change the copyright trust service provider by requesting the Copyright Trustor if necessary for the benefit of the Member.

6. The Company will not be responsible for any issues arising from direct transactions between Members without the brokerage service of the Company.

7. The Company may temporarily suspend the provision of Services in the event of maintenance, replacement, or breakdown of information and communication facilities such as computers, loss of communication or significant reasons for operation. In this case, the Company will notify the Members of the fact in the manner specified in Article 17 hereof (Notice to Members). However, if there is an unavoidable reason that the Company cannot notify in advance, the Company may notify ex post facto.

8. The Company may conduct regular inspections if necessary for the provision of Services, and the regular inspection time will be notified on the service provision screen.

Article 7 (Change of Services)

1. The Company may change all or part of the Services it provides according to the operational and technical needs if there is a significant reason.

2. Upon occurrence of changes in the Service, the Company will notify the Members of the contents of the Service changed in the manner specified in Article 17 hereof (Notice to Members).

3. The Company may modify, suspend or change some or all of the Services it provides according to the Company’s policy and operation, and the Company will not compensate the Member unless it is done by intention or negligence.

Article 8 (Termination, Cancellation, etc. of Service Use Contract)

1. A Member may apply for Termination of the use contract at any time using the information management menu on the main page of the Services, and the Company will immediately handle it according to the relevant laws, etc.

2. When a Member terminates the contract, all data of the Member will be destroyed immediately upon Termination of contract except when the Company keeps the information of the Member pursuant to the relevant laws and the Privacy Policy.

Article 9 (Restriction on Use, etc.)

1. The Company may restrict the use of the Service by stage, such as warning, temporary suspension, permanent suspension, if the Member violates the obligations under these Terms and Conditions or interferes with the normal operation of the Services.

2. Notwithstanding the preceding Paragraph, the Company may immediately and permanently suspend the use of the Services if the Member engages in the violation of the relevant laws such as identity theft and payment theft in violation of the Resident Registration Act, illegal communication and hacking, distribution of malicious programs, and acts that goes beyond its access rights in violation of the Act on the Information and Communication Network. The Company will not separately compensate for any disadvantages resulting from permanent suspension of use hereunder.

3. The Company may restrict the use for the protection of the Member information and operational efficiency if the Member does not log in for more than three (3) months.

4. The Company will set the conditions for restrictions and the details within the scope of restriction on use specified in this Article as provided in the usage restrictions policy and the operation policy on separate Services.

5. The Company will be entitled to purchase the Right to Claim Participation in Copyright Fee of the Member who is restricted from using the Services in accordance with Paragraphs 1 and 2 hereof at the initial purchase price of the Member. The Company may reclaim the Right to Claim Participation in Copyright Fee from the Member by paying the amount after deducting the fee agreed by the Member upon registration using the account information provided by the Member on the Site. The Company will not be responsible for settlement and payment of money that the Member is entitled to receive from the Right to Claim Participation in Copyright Fee in the future which may arise from the Right to Claim Participation in Copyright Fee held by the Member at the time of restriction under Paragraph 1 and 2 hereof, and the resale of the Right to Claim Participation in Copyright Fee.

6. In the event of restricting the use of the Services or terminating the use contract in accordance with this Article, the Company will notify the Member of the decision in the manner specified in Article 17 (Notice to Members) hereof.

7. A Member may make an appeal in accordance with the procedures set forth by the Company regarding restrictions on use hereunder. If the Company admits that the objection can be justified, the Company will immediately allow the use of the Services.

Chapter 3. Protection of Member’s Information

Article 10 (Change of Member’s Information)

1. A Member may read and modify one’s personal information at any time on the personal information management site. However, the real name, ID (including e-mail), etc. necessary for management of Services may not be modified.

2. A Member will make corrections online or notify the Company by e-mail or other means of the changes in information provided at the time of membership registration.

3. The Company will not be liable for any disadvantages caused by not informing the Company of the changes as specified in Paragraph 2.

Article 11 (Obligation to Protect Personal Information)

1. The Company will endeavor to protect the personal information of its Members in accordance with the relevant laws and regulations such as the Act on the Information and Communication Network. Relevant laws and regulation and the Company’s Privacy Policy will be applied to the protection and processing of personal information. However, the Company’s Privacy Policy will not apply to hyperlinked sites other than the Company’s official Site.

2. The Company will collect the personal information to a minimum extent necessary to provide Services when collecting the personal information of the Member.

3. The Company will obtain the Member’s consent when collecting or using the Member’s personal information or providing it to a third party.

4. If the Company obtains the consent from the Member in accordance with Paragraph 3, the Company will specify or notify the matters concerning the collection and use of personal information (purpose of collection and use, items of personal information collected, retention and use period of personal information, etc.) and the matters concerning the provision of personal information to a third party (the recipient, the purpose of use of the recipient, the items of personal information provided, the retention and use period of the recipient), etc. in advance.

5. A Member may withdraw one’s consent at any time, even if he or she gives consent in accordance with Paragraph 3.

6. A Member may request to read and modify one’s personal information possessed by the Company at any time, and the Company will be obliged to take necessary measures without delay. If the Member requests correction of the error, the Company will not use the personal information concerned until the error is corrected.

7. In principle, the Company will destroy the personal information of the Member without delay when the purpose of collecting and using personal information is achieved, except for the following cases. In this case, the Company will use the stored information of the Member only for the purpose of keeping it. If the Company is required to preserve the information under the relevant laws and regulations such as the Commercial Act, the Company will keep the information of the Member for a certain period of time specified in the relevant laws and regulations.

① If the service use contract is terminated due to the Member’s withdrawal application, etc., the Company will keep the necessary information such as the Member’s ID (including email), name or trade name, contact details, transaction details, and documents proving acts violating these Terms and Conditions to a minimum extent for one(1) year to the extent that it is deemed to be appropriate for protection of investors and prevention of arbitrary Termination to intentionally circumvent the limitations set out in these Terms and Conditions. ② The Company will keep the necessary information such as ID (including email), name or trade name, contact details, address, and information related to contract Termination and disqualification of the Member for whom the Company terminates the use contract or restricts the use of the Services to a minimum extent for one (1) year for the purposes of confirming whether there are any reasons to refuse re-registration of the Member. ③ If the retention period is specified when receiving consent on the collection of other information, the information of the Member will be kept until the retention period expires.

8. The Company will post the Privacy Policy regarding the protection and processing of the Member’s personal information on the Site (www.musicow.com) so that the Member and a person who wishes to use the Service of the Company can understand.

Article 12 (Obligation to Manage ID (including e-mail) and Password of the Member)

1. A Member will be responsible for the management of one’s ID and Passwords and will not allow a third party to use it.

2. The Company may restrict the use of certain ID of a Member if there is a concern that the Member’s ID may be leaked, may be anti-social or anti-morals, or misunderstood as the Company and the operator of the Company.

3. If a Member is aware that one’s ID and Password are stolen or used by a third party, the Member will immediately notify the Company of the fact and follow the Company’s instructions.

4. In case of Paragraph 3, the Company will not be liable for any disadvantages caused by the Member’s failure to notify the Company of the fact or failure to comply with the Company’s instruction even if it notified the Company.

Chapter 4. Obligation of Company and Member

Article 13 (Obligations of the Company)

1. The Company will not be engaged in any acts that are prohibited by the relevant laws and regulations and these Terms and Conditions, or that is contrary to public morals, and the Company will do its best to provide Services in a consistent and stable manner as provided in these Terms and Conditions.

2. The Company will have a security system to protect personal information (including credit information) of the Member so that the Member can use the Service safely, and disclose and comply with the Privacy Policy of the Company.

3. The Company will have the necessary personnel and systems to properly handle the complaints or remedy requests of the Member arising in connection with the use of the Services.

4. The Company will handle any opinions or complaints raised by Members related to the use of the Service that the Company deems justifiable. The Company will notify the Member of the processing status and results of the Member’s opinion or complaint through the bulletin board or e-mail.

Article 14 (Obligations of the Member)

1. A Member will not be engaged in the following acts:

① Registering false information when applying or changing ② Stealing information of other person ③ Changing information posted by the Company ④ Sending or posting information (computer program, etc.) other than the information specified by the Company ⑤ Infringing intellectual property rights, such as copyright of the Company or a third party ⑥ Damaging the reputation of the Company or other third parties or interfere with business ⑦ Disclosing or posting obscene or violent message, video, audio, or other information against public moral on the Site ⑧ Other illegal or unfair acts

2. A Member will comply with the relevant laws and regulations, the provisions of these Terms and Conditions, notices made related to the use and the Services, notices from the Company, etc., and will not engage, in any way, in acts that interfere with the business of the Company.

Chapter 5 Miscellaneous

Article 15 (Details of Service Fee)

1. The Company may collect various usage fees from the Members in connection with the use of the Service.

2. The Company may, at its discretion, add, abolish or change the fee, and upon amendment, the Company will post it on the Site or notify the Member of the amendment by other means, specifying the date of application and the reason for the amendment from thirty (30) days before the date of application to the previous date of application.

Article 16 (Limitation of Liability)

1. If the Company is unable to provide the Services due to natural disaster or force majeure events equivalent thereto, the Company will not be responsible for providing the Service unless such failure results from the Company’s willful or negligent act.

2. The Company will not be liable for any failure in the use of the Service due to the Member’s fault, unless such failure results from the Company’s willful or negligent act.

3. The Company will not be responsible for the contents, reliability and accuracy of information, data, facts, etc. posted by the Member in relation to the Services, unless due to the Company’s willful or negligent act.

4. The Company will not be liable for the use of the Services provided free of charge by the Company, unless there are special regulations in the relevant laws.

5. The Company will not be liable for any loss or damage caused by the Member’s participation in, or communication with, or trading in the promotional activities provided by the affiliated company, etc., on the Service or through the Service, unless due to the Company’s willful or negligent act. If a Member moves to another website through a hyperlink included in the Services, the Company will not be liable for the contents of the information provided on the site and damages caused thereby unless due to the Company’s willful or negligent act.

Article 17 (Notice to Member)

1. Upon notice to Member, the Company may notify by e-mail or text message provided at the time of membership registration unless otherwise specified in these Terms and Conditions.

2. Upon notice to unspecified number of Members, the Company may substitute the notice set forth in Paragraph 1 above by posting it on the main page of the Services for more than seven (7) days. However, for the matters that have a significant impact on the Member’s own transactions, individual notice will be given.

Article 18 (Dispute Resolution and Jurisdiction)

1. Legal proceedings brought between the Company and the Member will be governed by the laws of the Republic of Korea.

2. When a legal proceeding is filed regarding a dispute between the Company and the Member, the district court having jurisdiction over the Member’s address at the time of filing will be the exclusive jurisdiction court. However, if the Member’s address or place of residence is not clear at the time of filing, or if the Member is a foreign resident, the competent court will be determined by the Civil Procedure Act.

These Terms and Conditions will be effective from January 7, 2019.