Culture ministry sets new rules for copyright trust managers

South Korea's culture ministry said Thursday that copyright trust managers will need government approval to change their articles of incorporation, under revised enforcement rules for the Copyright Act that take effect the same day.

The rules, issued as Ministry of Culture, Sports and Tourism Ordinance No. 651, require a trust manager seeking a charter amendment to submit an application to the minister with the reasons for the change, the proposed text, minutes of the meeting that approved it and documents supporting the cause.

The revision follows an amendment to the Copyright Act, promulgated on April 28 and effective on Oct. 29, that sought to strengthen accountability and democratic governance in the copyright trust business and to protect the interests of copyright holders.

A trust manager must apply to renew its license six months before it expires, and the minister must notify the operator of the renewal requirement and procedure by nine months before expiration. The ministry will examine whether the operator has violated the law or complied with corrective orders before issuing a new license certificate.

Professional managers at trust managers and royalty-collecting bodies must have at least 10 years of service at such an organization, including experience at or above department-head level, or 10 years of experience at a public institution or other entity in personnel, finance, accounting, management or copyright-related work. Trust managers and royalty-collecting bodies may instead set their own standards in their articles of incorporation for people with extensive copyright or management expertise.

Executives of copyright trust managers will also file a declaration form reporting economic interests they acquire.

The ordinance was announced by the culture minister and takes effect on Oct. 29.