If you pay for digital content, do you actually own it ? or is it more like a gym membership, valid only for a limited time?
A recent ransomware attack on Yes24, Korea’s largest online bookstore, has rekindled debate over the nature of ownership when it comes to digital content. Some experts are calling for stronger protections as cases emerge where consumers lose access to content ? whether through an accident or intent from the provider.
What happened?
Yes24 was hit by a ransomware attack ? a form of malware that encrypts servers and demands payment for restoration ? on June 9, restricting access to its e-book services.
Although users had paid for their books, they couldn’t read them when they needed to. Some were left anxious over the possibility that their purchase history had been erased and that their e-books might have been permanently lost. On June 13, Yes24 resumed access to its e-book service at 9:30 p.m. after recovering backup data.
While the worst-case scenario was avoided, the controversy continues over compensation.
Most users consider the e-books as something they own, but Yes24 treats them as rentals. In an announcement made on Sunday, the company said it would extend the rental period by five days for users who had borrowed e-books. However, no plan was mentioned for users who had purchased permanent access.
“We’ve always defined e-book purchases as rentals in our terms of service,” said a Yes24 representative. "A compensation plan for permanent access customers will be announced soon."
Why it matters
This is not the first time such an incident has occurred.
In January, webtoon platform Peanutoon announced it would shut down after 10 years of operation. Within a month, the company entered liquidation without issuing refunds to users ? sparking accusations of a scam. Because users are seen as having only a limited license to use the content rather than owning it, legal accountability was limited.
With digital content use on the rise, such problems are likely to continue.
A 2022 study by the Korea Creative Content Agency found that the most common type of consumer complaint ? accounting for 24.2 percent ? was damage caused by discontinued content services. Legal protections are also lacking. While the Content Industry Promotion Act encourages protecting user rights, the provisions are only recommendations and carry no binding authority.
For games, user rights are even more limited.
Ownership of in-game items is categorically denied due to concerns about promoting gambling. Article 28 of the Game Industry Promotion Act stipulates that all in-game assets belong to the developer. Accounts cannot be inherited either. I
In a rare exception, game developer Smilegate transferred a Lost Ark account last year to the family of a deceased user after hearing their story. But such cases are exceedingly rare.
"The refusal to recognize ownership of digital content has led to workaround solutions instead of formal protections," said attorney Lee Cheol-woo at Munwha Lawoffice.
What about overseas?
Similar disputes have occurred abroad.
In 2023, Ubisoft, a global game publisher, shut down the racing game The Crew nine years after its release. Although users had purchased the game, they could no longer play it. In November 2024, a group of consumers filed a lawsuit against Ubisoft ? a case still ongoing.
Steam, the world’s largest digital game platform, revised its terms of service last year to clarify that games sold on its platform are licensed, not owned ? which triggered backlash from users.
Some jurisdictions are stepping in with legislation.
California passed the Digital Goods Purchase Law in September last year, banning platforms from labeling content ? including games, music and e-books ? as “purchased” unless users truly own it. The European Union implemented its Digital Content Directive in 2019 to ensure that purchasers are recognized as rights holders, legally obligating platforms to uphold their rights as much as possible.
“In Korea, we at least need legislation that clearly defines the nature of digital content and informs users about the contracts they are entering,” said Baek Ji-hyeon, a researcher at the National Assembly Research Service.