1. Overview of the Case
The client was planning and developing a paid subscription-based mobile app service that allows users to photograph physical image content they own offline and then compose, arrange, and select these as virtual objects within the mobile app. The service was designed so that the image data captured by the user would be used only within the app. However, because the photographed subjects could be image content protected by copyright, a preliminary review of the possibility of copyright infringement and the scope of the operator's legal liability was necessary. In particular, the key issues raised were whether, in the course of storing and using the image data, the conduct would constitute "reproduction" or "transmission" under the Copyright Act, and further, whether it could be evaluated as private use even under a paid subscription model.
2. Key Issues and Response
The most important issue in this matter was whether the requirements for infringement under the Copyright Act would be met, given a structure in which images photographed by the user are stored only within the device's internal storage, without passing through the company's servers.
Your Legal Team first clarified, based on the technical implementation method, that as long as the image data is not transmitted externally, it does not constitute "transmission" under the Copyright Act.
Next, although the act of storage itself may formally constitute "reproduction," we presented our review opinion that, when comprehensively considering the scope and purpose of its use, if the structure is one in which the user uses it alone on his or her own device, it is highly likely to be evaluated as reproduction for private use (Article 30 of the Copyright Act). In addition, we explained in concrete terms that if the client sufficiently implements technical and managerial measures to protect copyright, such as blocking screen capture and recording, excluding external sharing functions, and adopting a server-non-storage (Local Storage) method, and if it explicitly prohibits illegal use through its terms of service, then even if an individual user violates the terms and uses the images improperly, it would be difficult to recognize aiding-and-abetting liability for copyright infringement on the part of the service operator.
Through this, the client was able to clearly establish that the service structure itself does not presuppose copyright infringement, and that the legal risk is being managed at a level that can be controlled in advance.
3. Results and Significance
Through this advisory work, the client was able to establish a service model that structurally blocked the risk of copyright infringement from the service planning stage, and secured a legal basis for the position that, despite being a paid subscription app service, the users' use behavior may fall within the scope of private use. In particular, the practical significance is great in that, rather than an abstract judgment that "there will be no problem," we comprehensively designed the technical implementation method, scope of use, terms of service, and the operator's management responsibility, thereby laying a foundation for clearly organizing the defense logic should a dispute arise in the future. This serves as a proactive risk management case applicable across various app and platform services that utilize image-based content, and provides important implications for business operators preparing similar services.
The "Your Legal Team" of Insight Law Firm supports the stable growth of companies through advisory work that removes legal risk by design from the planning stage, rather than dispute response after the service launch.