[Digital Daily Correspondent Kang So-hyun] A legal battle between SK Broadband and Netflix over the cost of using the network has entered the second round. While the definition of the duties of telecom operators and content providers became the center of this workshop, SK Broadband put the ‘merchant’s right to claim compensation’ and Netflix newly put the ‘bill and keep’ principle.
◆Netflix with ‘Bill and Keep’ principle… “SKB network users are not in a position to demand”
On the 16th, the Seoul High Court held the first trial date of the second trial for the non-existence of debt lawsuit filed by Netflix against SK Broadband and the lawsuit for the return of unfair profits filed by SK Broadband against Netflix.
Netflix, which had advocated net neutrality in the first trial, changed its position. In the second trial, he came up with the ‘bill and keep’ principle and said that he had no obligation to pay for network use. According to the ‘bill and keep’ principle, which is an established practice in the internet world, it is argued that SK Broadband cannot demand payment for network use.
A Netflix spokesperson said, “Bill and Keep is the principle that the ISP receives access fees from its own Internet users to cover the costs and does not demand more money from the other ISP. have to bear That is the nature of the internet world,” he said.
According to Netflix, the companys terms and conditions stated that “the user should bear the fee for accessing the Internet,” while SK Broadbands terms and conditions stated that, “If the download speed is insufficient, the usage fee will be reduced.” In response, a Netflix spokesperson interpreted it as “guaranteeing the maximum speed because the defendant has the duty to transmit the content.” “Defendants are transmitting content to fulfill their obligations to users, not providing services to Netflix,” it added.
He emphasized once again the Open Connect Alliance mentioned in the previous hearing preparation date, and also emphasized that they are fulfilling their duties as CPs. OCA is Netflixs own CDN technology that predicts the content that subscribers will watch at a specific time and stores it in advance in a cache server near the service country. Netflix has been claiming that it has reduced the traffic burden on ISPs by installing OCA to bring content to the vicinity of the service country.
A Netflix spokesperson said, “There is a reasonable solution called OCA, but SK Broadband only uses its call monopoly power to collect tolls. has built
I have the right to claim remuneration since I provided SKBs key telecommunication service
SK Broadband emphasized that Netflix has a legal obligation to pay for network use by stating the ‘merchant’s right to claim compensation’. The merchants right to claim compensation, as mentioned by SK Broadband, is stipulated in Article 61 of the Commercial Act. According to Article 61 of the Commercial Act, a merchant may claim a substantial remuneration for acts for others within the scope of his/her business.
A spokesperson for SK Broadband said, “The defendant is a merchant, and the defendants provision of key telecommunication services for the plaintiffs constitutes an act for others. there is,” he said.
It also refuted the ISPs obligation to deliver content as defined by Netflix. SK Broadband also cites Netflixs terms and conditions, and insisted that Netflix, not SK Broadband, has the duty to transmit content, so they should pay for the network use.
Article 1 of the Netflix Terms and Conditions mentioned by SK Broadband stipulates that it is “a service that provides movies and programs to members through Internet streaming.” In response, a spokesperson for SK Broadband said, “It is very unfair to talk about the other partys terms and conditions while ignoring that part.”
In addition, SK Broadband, citing the key telecommunication services listed in Article 2 of the Telecommunications Business Act, emphasized that their duties include building infrastructure for transmission and reception. It is to transmit or receive audio and video without changing the content or form, such as internet access,” he said.
OCA also emphasizes that Netflix is responsible for content delivery, SK Broadband said. A spokesperson for SK Broadband said, “Netflix compares SK Broadband to a courier company and says that it discriminates based on the weight of goods, but that analogy is not appropriate. It is acknowledging that it is.” Then, he asked, “If you say that you are investing 1.2 trillion won to install OCA, why would you invest if Netflix has no reason?”
He also mentioned ‘Bill and Keep’, which was promoted by Netflix. Contrary to Netflixs claim that it is a basic principle of the Internet, the position is that it is only a settlement method between ISPs. A representative of SK Broadband pointed out, “It means that we should not settle each other if the amount of traffic exchanged between ISPs is equal, and if the economic benefits are similar.”
Meanwhile, the next hearing date for both sides is May 18.