One South Korean media company will have to face the music, to the tune of $50 million.
CJ E&M, one of the country’s largest entertainment and media contents companies, has reportedly been sued by Korean music agency DFSB Kollective for $50 million.
The lawsuit was filed against both CJ E&M Korea and CJ E&M’s US divisions claiming the company made songs available for purchase in the United States without the proper copyrights and even submitted falsified copyright information, saying they held “exclusive” licenses to the music.
The lawsuit also claims that CJ E&M was supposed to make their songs available for purchase by U.S. only via digital music stores in the country. However, CJ E&M supposedly allowed U.S. users to purchase songs from Korean sites at extremely low prices, which lowered profits for copyright holders in the U.S.
This is the first time CJ E&M has been hit with a lawsuit regarding copyright infringement. Because the lawsuit was filed in the U.S., CJ E&M could be liable to pay punitive damages in addition to the fine.
CJ E&M counts among its assets FNC Entertainment, the record label home to acts like CNBLUE, FTIsland, and AOA, as well as MBK Entertainment (formerly Core Contents Media), which represents T-ara and recently debut girl group DIA.