"Business has been terrible since the martial law crisis, and now this?" said one Golfzon store owner in the Seoul metropolitan area.
"Paying 2,000 won per 18-hole round to headquarters is already excessive. If they raise it further, they're basically telling us to shut down," said another franchisee in Gangwon Province.
Golfzon screen golf franchisees expressed concern after learning of the court's recognition of golf course copyrights, saying the company will inevitably pass costs onto them.
The golf industry is in turmoil after the Supreme Court ruled that golf course designs can be protected under copyright law. Golfzon, the leading screen golf operator found to have infringed copyrights, now faces a higher likelihood of paying damages to course design firms. Other screen golf companies offering domestic courses may face similar situations.
The Supreme Court's First Division on December 26 overturned a lower court ruling that had favored Golfzon in a copyright and damages lawsuit filed by three domestic and foreign golf course design firms. The case was remanded to Seoul High Court. The court found that course design plans demonstrate creativity warranting copyright protection. The three plaintiffs are seeking a combined 30.71 billion won in damages. While final amounts will be determined in future proceedings, other design companies may also assert their rights, potentially snowballing total claims. Kakao VX, which operates Friends Screen, and other screen golf operators are closely monitoring developments.
The screen golf industry is worried about potential fee increases. One Golfzon franchisee said on December 27, "If damages are finalized, cost pass-through is inevitable. Customers already complain about buffering from mid-round ads and course advertisements. If fees rise too, fewer customers will come." Another franchisee said, "We pay 2,000 won per 18 holes to headquarters for course usage fees. That's millions of won monthly, which is already burdensome. Even a 1,000 won increase would be hard to survive."
A golf industry official said, "In course design contracts, designers often retain copyrights even when golf courses pay design fees. Each course has a unique layout, and this was clearly a matter deserving copyright recognition. The screen golf industry seems to have underestimated this."
TGL, the U.S. screen golf league founded by Tiger Woods and others, exclusively uses virtual courses and even employs famous course designers to create precise simulations.
Golfzon Group stated on December 27, "The Supreme Court remanded the case because additional deliberation is needed on the creativity of individual golf courses. We will actively pursue legal responses to obtain judgment on litigation issues including creativity."