Started the second round of the network usage fee litigation
Using Netflix OCA, can replace network usage fee
Explosive SKB traffic… Installing OCA doesnt have much effect
Please let the judges CP know the standard of payment [Financial News]
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A legal battle between SK Broadband and Netflix over the cost of using the network entered the second round.
Netflix argued that it was possible to reduce traffic by using Open Connect Appliance using its own technology, and that it was wrong in the first instance judgment that it should pay the network connection fee. In response, SK Broadband countered that “the premise of providing Internet network services is to pay.”
Network usage fee free VS paid
The Civil Division of Seoul High Court 19-1 held the first hearing of an appeal against Netflixs debt-existence lawsuit against SK Broadband on the 16th.
Both Netflix and SK Broadband held oral arguments for about 20 minutes each on the same day.
Netflix emphasized that traffic can be reduced with OCA, a technology developed by Netflix, which can replace the network fee. This is to apply the so-called mutual non-settlement method.
In other words, Netflix argues that OCA should reduce the traffic burden of telecommunication companies and that the network use cost is similar, so do not exchange with each other.
On the other hand, SK Broadband said, “The domestic law requires CPs, which are value-added carriers, to provide services for a fee. It is a misunderstanding because the act under the commercial law is based on the premise of remuneration.” “Overseas CPs are also declaring that they will pay for network use,” he said. Apple TV and Disney say they will. Facebook is also doing it,” he said.
Netflix claims that it is offering OCA, but SK Broadband refuses to do so.
On the other hand, SK Broadband countered that installing OCA would not have much effect. A large amount of traffic is coming in through OCA, and the content traffic has exploded 40 times in the aftermath of the novel coronavirus infection, claiming that it has reached a point where it cannot afford facility investment.
■Judge “Please inform the CP about the cost collection standards”
On that day, the court said, “SK Broadband claims that it is receiving fees from domestic CPs” and demanded, “Please let me know if there are standards or guidelines for collecting expenses.”
In response, SK Broadband said that it would consider whether it would be possible to submit evidence after obtaining the consent of the other company to cover some content.
Netflix insisted, “If we find a case that can be compared with us, we should compare whether Naver and Kakao pay US ISPs.”
The court also requested that Netflix explain whether Netflix uses the network in terms of physical and mechanical aspects. They asked for an explanation of whether there was an explicit agreement to use the network between Netflix and SK Broadband.
The next trial will be held on May 18th.