Discovering the Full Potential of the 360 Deal: An Analysis of the Korean Pop Industry, Seven-Year Statute, and Talent Agencies Act of California

Abstract

The 360 deal has been an attractive option for music labels in the United States to gain traction in the faltering music industry, but potential legal obstacles may hinder the incentive to enter into the deals both for the label and for the artist. Labels entering into 360 deals may find themselves liable for violating the Seven-Year Statute or the Talent Agencies Act (TAA). With 360 agreements becoming more popular, labels should turn to an existing music industry that has dealt with the potential legal problems of 360 deals for years. The Korean pop industry, commonly called "K-pop, " has taken advantage of a 360-deal-like model for many years, and as a consequence , many Korean labels have experienced the potential legal problems that American labels may face. Particularly, the legal problems faced by S.M Entertainment, a talent agency and music label giant in South Korea, as a result of their contract with TVXQ, a popular and hugely successful boy band, reveal exactly the type ofpotential liability faced by American music labels. By analyzing and reviewing the current legal landscape facing Korean labels that almost exclusively negotiate 360 agreements with their artists, music labels in the United States can become more successful.