(Case Analysis: Seoul Central District Court 2021Gahap588060)
If you run a business renting out books, luxury bags, or selling products via a purchasing agency (dropshipping), you inevitably face this question: “Can I post photos of the original product (e.g., book covers, brand logos) on my website to explain what I am renting/selling?”
Today, I will share a significant court case regarding a book rental business that posted book covers and excerpts on their website, and whether this constituted copyright and trademark infringement.
The Case: The “Book Rental” Dispute
Company A operates a business renting out sets of children’s books. On their website’s product detail page, they posted:
- Images of the book covers.
- Scans of about 1 page of the inside content (to show the style).
- The name of the Publisher (Trademark).
The Publisher sued Company A, claiming:
- “Posting our book covers and inside pages is Copyright Infringement.”
- “Using our Publisher Name (Trademark) on your site is Trademark Infringement.”
The Court’s Verdict: “Not Guilty”
The Seoul Central District Court ruled in favor of the rental business (Company A), stating that neither copyright nor trademark rights were infringed. (Seoul Central District Court, Dec. 15, 2023, Case No. 2021Gahap588060).
Legal Analysis 1: Why is it NOT Copyright Infringement?
Key Concept: Fair Use
The court ruled that Company A’s actions fell under “Fair Use” (Article 35-5 of the Copyright Act).
The Court’s Reasoning:
- Limited Scope: Company A only showed the cover and 3-4 pages out of a massive multi-volume set (dozens of books).
- Necessity: To operate a rental business, it is essential to explain the product to customers. Showing the cover and a brief glimpse of the content is necessary for this explanation.
- No Market Replacement: The posted images were not enough for a customer to read the entire book. Therefore, the website posts did not replace the demand for the original book. (i.e., people wouldn’t say, “I saw one page on the website, so I don’t need to buy or rent the book.”)
Legal Principle: Copyright law aims to promote culture. While it protects creators, it also guarantees a reasonable level of “freedom of use” to foster cultural development. If the use does not conflict with the normal exploitation of the work and does not unreasonably prejudice the legitimate interests of the author, it is allowed.
Legal Analysis 2: Why is it NOT Trademark Infringement?
Key Concept: Non-Trademark Use
For trademark infringement to occur, the mark must be used “as a trademark” (to indicate the source of the service).
The Court’s Reasoning:
- Descriptive Use: Although Company A used the publisher’s name, it was used solely to describe the product being rented.
- No Confusion: Consumers would not think the “Rental Service” itself was provided by the Publisher. Company A had its own distinct brand name for its rental service.
- Conclusion: Using the brand name to identify the goods is not using it as a trademark for the rental business itself. Therefore, there is no infringement.
[Practical Application] What About Resellers & Buying Agents?
This ruling is highly relevant for Resellers, Purchasing Agencies (Dropshippers), and Parallel Importers.
Many clients ask: “Can I use the original product photos or brand logos on my sales page?”
1. General Rule:
- Trademark: Using the brand name to explain what you are selling is generally safe (Descriptive Use). It is not trademark infringement.
- Copyright: Simple product photos (e.g., a simple shot of a bag against a white background) often lack “creativity” and may not be protected by copyright in Korea. However, highly styled “editorial photos” or “detailed descriptions” created by the brand are copyrighted.
2. Policy Perspective: Legally and economically, allowing parallel imports and multiple distributors encourages price competition, which benefits consumers. Unless you are deceiving customers into thinking you are the “Official Distributor” when you are not, distributing genuine goods is generally protected.
⚠️ Caution: While simple product shots are often okay, copying the brand’s unique marketing text, styled model photos, or detailed HTML designs can still constitute copyright infringement or unfair competition.
Conclusion
The fundamental purpose of Intellectual Property law is to balance “Protection of Creators” and “Industrial Development.”
This ruling confirms that using a minimal amount of copyrighted material (like a book cover) or a trademark simply to conduct a legitimate business (like renting or reselling) is a Fair Use that serves the public interest without harming the rights holder.
Sarang IP We provide expert legal counsel on intellectual property disputes, fair use, and e-commerce law.
(Disclaimer: This post is for informational purposes only and does not constitute specific legal advice. Please consult with a professional attorney regarding your specific case.)
