UCLA Entertainment Law Review

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.