Broadcasters are taking legal action against TVPad, a Chinese-made set-top box that allows users to watch terrestrial broadcasts such as Korean dramas and entertainment, by seeking an injunction to ban its sale in Korea. While cable and Internet TV (IPTV) pay copyright fees in exchange for access to terrestrial broadcasts, TVPads do not pay any fees to broadcasters, including copyright fees.

The Civil Division 21 of the Daejeon District Court (Presiding Judge Lee Hyun-woo) accepted the application for a preliminary injunction against copyright infringement (2014 CA 50121) filed by SBS Content Hub, which has exclusive distribution rights for KBS, MBC, SBS, and SBS content, against Jang Mo-mo, a representative of TVPad Korea, which sells TVPads manufactured by China CNT in Korea, saying, "Jang should not sell TVPads."

"The set-top boxes sold by Ms. Jang infringe the broadcasting rights, simulcasting rights, and transmission rights of broadcasters by enabling purchasers to watch broadcasters' broadcasts in real time regardless of location," the court said in its decision.<"Considering the short-lived popularity of broadcast programs, the fact that most of the sales are made within a short period of time, and the fact that the broadcast works are still being aired through the set-top boxes, there is an urgent need to stop the infringement of the reproduction rights, public transmission rights, and simulcasting rights of the works," the court said.

The Criminal Division 1 of the Daejeon District Prosecutors' Office began investigating Ms. Zhang's alleged violations of copyright laws after the court granted the preliminary injunction. Meanwhile, the civil lawsuit filed by the broadcasters against the set-top box distributors is being heard by the Civil Division 11 of the Seoul Central District Court (Presiding Judge Kim Ki-young). The broadcasters are also pursuing civil lawsuits against TVPAD distributors in the U.S.

The broadcasters will request the Chinese public security to investigate TVPAD's headquarters in China if the civil and criminal cases confirm that TVPAD violated copyright laws. "In order to confirm the illegality of the Chinese headquarters, an active investigation by the Chinese public security force is necessary, but the Chinese public security force has taken a passive stance, saying, 'It's not a matter for us to come forward because it hasn't been determined in Korea,'" said Han Byul, a lawyer at the law firm representing the broadcasters. "This preliminary injunction decision is significant because it is the court's first judgment confirming the illegality that is the basis for requesting the public security force to cooperate."

By connecting the TVpad's set-top box to a TV and clicking on the application that appears on the screen, users can watch the broadcasters' programs in real time, regardless of the broadcast time and region, without the broadcasters' consent or permission. It is estimated that terrestrial broadcasters earn about 40 billion won in royalties from IPTV companies in a year, so the profits gained by Chinese set-top box companies by not paying royalties are also significant.