Entertainment

Conventional legal services in the entertainment field were specialized in defending celebrities' private affairs and advising on exclusive contracts.

Recently, however, as the field has developed into a wide range of areas such as film, music, broadcasting, performances, games, sports, and social media content, and as the market size of the entertainment industry has expanded, legal disputes have also intensified.

There are not only legal disputes involving interested parties such as creators, companies, and investors, but also strengthened government regulation of the entertainment industry, so an appropriate response strategy is being emphasized.

Accordingly, demand for the legal services of entertainment-related law firms and attorneys experienced in this area is also naturally increasing.

The legal issues that can arise in the entertainment industry are highly varied, and it is advisable to receive legal advice from an attorney on these matters.

∙ Copyright and Intellectual Property Rights

Entertainment operators may experience disputes related to various intellectual property rights, such as the copyright protection and dispute resolution of content, patents, and 🔗Trademark/Design.

Content producers and companies need legal advice to prevent copyright infringement and to resolve it when it occurs.

∙ Contracts and Negotiations

Entertainment operators and others may experience legal disputes in contracts among celebrities, production companies, and distributors, as well as in advertising and sponsorship contracts and distribution contracts.

In response, an attorney provides support to prevent unfair terms that may arise in the conclusion and negotiation of contracts.

∙ Performance and Broadcasting Law

Legal advice may be needed on legal issues related to performances and broadcasting.

Advice can be provided on a variety of broadcasting-related legal issues, such as broadcasting transmission rights, appearance contracts, and copyright usage rights.

∙ Digital Media and Streaming Services

Legal disputes may arise in connection with the distribution of content on digital platforms, legal regulation of streaming services, and copyright protection.

Given the rapid development of this field, it is important to identify related legal issues in advance and respond to them.

An exclusive contract with a celebrity is not merely an employment relationship but has a complex contractual structure that includes creative labor and the use of one's image.

In the contract, it is very important to clarify detailed provisions such as the scope of activities, the method of settlement, penalties for breach, grounds for termination, and the distribution of revenue from secondary works.

To this end, the Fair Trade Commission has presented a standard exclusive contract form, but in practice it is often partially modified or supplemented with special clauses, so disputes are frequent.

Unfair contracts arise especially often in contracts with new celebrities, and these sometimes escalate into civil and criminal litigation.

Companies should obtain sufficient legal advice before concluding a contract, and they also need to settle in advance questions of rights attribution after the contract ends (for example, use of the group name, distribution of YouTube revenue, and the like).

Recently, contract models such as AI avatars, the metaverse, and virtual influencers have emerged, giving rise to new legal issues, so contract innovation reflecting these developments must also be carried out.

Intellectual property rights are the very assets of entertainment.

Content, sound recordings, scripts, choreography, costume designs, characters, group names, fandom names, and all other creative works that are not visible yet generate revenue are subjects that must be legally protected.

In particular, copyrights, trademark rights, and design rights require, in addition to domestic registration, a strategy for overseas protection through international registration systems such as WIPO, EUIPO, and the U.S. USPTO.

Recently, business models that exploit the blind spots of existing copyright law have become more numerous, such as NFTs based on sound recordings, the use of secondary creative works (memes, cover videos, and the like), and the monetization of fan communities, so companies need to establish a more refined IP management system.

For example, if an OST sound recording is illegally copied and distributed in Southeast Asia, the company must prepare an immediate response in collaboration with a local law office and must also implement technical measures such as inserting DRM and watermarks in advance.

The portrait right goes beyond simple ‘protection of a facial image’ and can extend to a celebrity's name, voice, gestures, and even a distinctive color or style.

The right of publicity is the authority for commercial use based on the portrait right, and this right operates broadly in advertising, merchandise, games, videos, and the like.

Therefore, when a company concludes a contract with a celebrity, it is advisable to clarify the extent to which advertising and secondary use rights are granted, and to include a separate consent clause if it wishes to continue commercial use after the contract ends.

Unofficial content such as merchandise produced for overseas fandoms and social media sponsorships is also increasing, so a monitoring system and a manual for complaint procedures should be established in preparation for infringement of the right of publicity.

Performance and event contracts have a complex contractual structure involving dozens of interested parties.

Agencies, artists, venue lessors, sound and lighting vendors, promoters, ticketing companies, and insurers are intertwined, so a contractual failure on one side can lead to the collapse of the entire event.

In particular, as online performances, metaverse fan meetings, and paid streaming have recently increased, new types of contractual clauses have become necessary.

For example, in the event a performance is interrupted due to an internet connection error or a copyright issue, the scope of refunds and liability for damages must be clearly defined.

In recent years, serious cases of infringement of celebrities' rights and interests have increased, including mental health issues, invasion of privacy, the spread of rumors, and harm from sex crimes.

At the same time, companies have a duty to review their internal labor environment, including artists' schedules, contracts, and training.

In trainee contracts, questions such as whether a trainee qualifies as a worker, long working hours, and a lack of transparency in settlement can lead directly to legal disputes.

In particular, if an artist becomes embroiled in social controversy due to a careless remark made during social media activity, the agency must issue an official apology while also preparing a legal response, and it must establish internal rules such as ‘social media operation guidelines’ and ‘privacy protection rules.’

In addition, the company should continuously monitor malicious rumors, defamation, and false articles, and should also consider securing dedicated personnel to protect its celebrities.

As the overseas expansion of K-content becomes more active, entertainment faces a variety of issues such as international contracts, local law, tax management, and foreign currency settlement.

In particular, activities in the U.S., Japanese, Southeast Asian, and European markets carry numerous risks, including copyright disputes, trademark registration, performance permits, and violations of the Foreign Exchange Transactions Act.

For example, when concluding a content license agreement with a local distributor, if matters such as secondary use, revenue distribution, and termination clauses are not clear, serious harm may result.

In addition, when an affiliated artist performs overseas, visa problems, violations of immigration regulations, and the non-declaration of foreign currency income can lead to a tax investigation.

Therefore, it is advisable to establish a system of collaboration with an external law firm that can provide international legal advice, and all contracts should be drafted simultaneously in the local language and in English, with notarization procedures also reviewed.

Daeryun Law Firm includes many attorneys, such as former in-house counsel at large corporations, attorneys who also hold patent attorney qualifications, and attorneys experienced in this area who have handled the review of contracts for numerous domestic and foreign companies as well as matters involving the private affairs of well-known celebrities and malicious online comments.

In addition, by leveraging Daeryun's global network, we can provide effective strategies in overseas expansion plans and legal disputes related to K-content.

In particular, we also provide legal advice on investment structuring and M&A that may arise from investment, mergers and acquisitions, and joint production in the entertainment industry.

Beyond this, we can effectively manage legal risks, including crisis management and responses to various risks.

If you anticipate a legal dispute related to the entertainment industry, please request assistance through an 🔗Entertainment Attorney Legal Consultation Reservation.