Supreme Court Rules on Copyright Claims for Unauthorized Use of Music in Online Games

In a recent ruling, South Korea's Supreme Court determined that the statute of limitations for copyright claims regarding unauthorized use of music in online games should be calculated on a daily basis from the date the music was used. The court's decision came in a case involving Czech Productions, the copyright holder, and HanbitSoft, a game development company.

Czech Productions filed a lawsuit against HanbitSoft after discovering that a piece of their music was used without permission in a game developed by an external company in 2006. The game was released in December 2008, and HanbitSoft later absorbed the external developer. It wasn't until May 2016 that HanbitSoft removed the unauthorized music from the game. In 2021, Czech Productions sought to recover 40 million won (approximately $34,000) in profits that HanbitSoft allegedly gained from the copyright infringement.

The first trial acknowledged HanbitSoft's unauthorized use of the music and ordered the company to return 25 million won (about $21,000) to Czech Productions. The court ruled that the unjust enrichment continued until the music was removed in 2016, and since the lawsuit was filed within the 10-year statute of limitations, the claim was valid. The appellate court upheld this decision.

However, the Supreme Court overturned parts of the lower court's ruling, stating that HanbitSoft continuously profited from the unauthorized use of the music from the game's release in December 2008 until its removal in May 2016. The court clarified that the claim for unjust enrichment arose daily during this period, and the statute of limitations should be calculated separately for each day. Consequently, the Supreme Court instructed the lower court to recalculate the unjust enrichment amount, excluding any claims that had already surpassed the 10-year limit.