Dongjak-gu Seoul Metropolitan Government Sari 3 00 apartment O 000

Law Firm Han-gu et al.

Attorney Cho Jae-il

Gangnam-gu Seoul High-dong 521

Representative Director Kim Young-min

Law Firm Pacific (Law Firm Pacific)

[Defendant-Appellant]

2. The costs of lawsuit shall be borne by the defendant.

The following facts shall not be disputed between the parties, or may be acknowledged by adding up the whole purport of the pleadings to each entry in Gap evidence 1 through 3:

A. The defendant is a corporation that operates broadcast program production business, entertainment agency business, etc., and the plaintiff is an artist belonging to the defendant.

B. On January 3, 2003, the Plaintiff entered into an exclusive contract (hereinafter “instant exclusive contract”) with the Defendant under which the Plaintiff delegated all rights to the Plaintiff’s entertainment activities to the Defendant (hereinafter “instant exclusive contract”).

(1) Article 1 (Purpose) (1)

In order to efficiently perform the Plaintiff’s entertainment activities, domestic and foreign entertainment activities, propaganda, contribution, interference, and all legal acts are managed and performed by the manager designated by the Defendant or the Defendant. The Plaintiff cannot personally conclude contracts or commitments with respect to the activities, and they are committed only to the extension of the work activities. (2) Article 2 (Period of Contract)

1. The term of this contract shall begin on January 3, 2003, and terminate on the tenth anniversary of the sale of the first music record.

② Where the Plaintiff’s personal affairs cannot be performed normally due to the Plaintiff’s personal affairs, the contract term shall be automatically extended as much as the above period.

(3) Article 3 (Transfer of Rights)

(1) The Plaintiff’s right to all broadcast contributions and entertainment activities at home and abroad shall be the Defendant.

(2) During the contract period, the plaintiff shall faithfully engage in the affairs determined by the defendant's judgment and shall not act as the plaintiff voluntarily during the contract period, and Article 11 (1), (2) and (3) shall apply to a violation.

③ All the powers of the Plaintiff, including contributions to all entertainment activities, are vested in the Defendant (4) Article 5 (Obligation of the Defendant)

(1) The plaintiff shall manage his/her identity.

(5) Article 6 (Duties of the Plaintiff)

(2) The defendant or manager shall bear the duty to contribute to various schedules, such as performance and broadcasting activities, as required by him/her.

section 9 (6) - Distribution of profits - Sound records

① If the Plaintiff published a music record and sold more than 500,000, or more than 500, or 000, the following music record shall be paid for KRW 50,000, or 00 as at the time of the publication of the music record, and 100,000, or KRW 00 shall be paid if the music record was sold more than 1,00,000 (if the music record was sold more than 500,000, or more than 25,000, 1,000, or 1,000, or 00, or if the Plaintiff worked as a member of the group, the amount calculated by dividing the number of persons of the group by the number of persons of the group shall be paid).

(2) Paragraph (1) shall apply only to the distribution of profits to the regular e-mail of the plaintiff, and the profits from the secondary e-mail produced by the defendant (abrost records, brost records, ombudsman's music records, etc.) shall belong to all of the defendant.

(3) The profit from the distribution of music files and the profit from sound records produced in foreign countries for the purpose of selling overseas markets shall be paid 10% thereof to the Plaintiff.

④ Upon the Defendant’s request, the Plaintiff shall contribute to the Internet broadcast produced by the Defendant at any time, which is not paid a contribution for the Plaintiff’s publicity.

⑤ The Plaintiff shall contribute as the top priority to the Defendant’s broadcast programs, and shall be paid 50% of the amount of the contribution.

§ 10 (Distribution of Profits - Broadcasting, event, advertisement, portrait, etc.)

① The Plaintiff shall pay 40% of the fixed contributions to all broadcast media to the Defendant.

(2) All broadcast contribution fees, other than fixed contributions, shall be appropriated at the expense of the defendant.

(3) 50% of net profits, excluding accumulated operating expenses, from among all other incomes generated from entertainment activities, shall belong to the defendant.

(8) Article 11 (Violation of Contract and Claim for Damages)

① In the event that the Plaintiff breached this contract, the Plaintiff shall compensate for all damages incurred thereby, and the Plaintiff shall be liable for all damages incurred in the event or conduct that may affect the entertainment activities. Accordingly, if the Defendant considers it difficult to continue the Plaintiff’s entertainment activities, the Plaintiff may discontinue the Plaintiff’s entertainment activities, and the Plaintiff shall compensate for damages incurred to the Defendant.

② The amount of damages shall be five times the Defendant’s total investment in the Plaintiff, three times the profits anticipated during the remaining contract period, and three hundred,00,000 won.

③ In cases where the Plaintiff and the Defendant agreed to terminate the instant agreement, Article 11(2) shall apply. On February 17, 2005, the Plaintiff sent to the Defendant a certificate of content that the Plaintiff would terminate the instant exclusive agreement on the grounds that the Defendant did not comply with the commitments to enter into a intermittent counter, ② did not pay the contribution fee, ③ did not properly perform the normal management of entertainment activities.

2. The assertion and judgment

A. Determination as to the invalidity of the instant exclusive agreement (1) Party’s assertion

The plaintiff, the maximum entertainment planning company in Korea, uses his superior position to enter into the above exclusive entertainment contract of this case with the plaintiff, ① a long-term of 10 years after the first music record sale, and the period of the contract is excluded from the contract period, and ② an excessive amount of compensation for damages to the extent that it is difficult for the plaintiff or his parents to cope with the contract of this case. ③ The defendant does not bear any obligation or damages under the exclusive entertainment contract of this case. On the other hand, the plaintiff does not receive any benefit such as down payment from the defendant except for the distribution of profits from entertainment activities. The ratio of profit distribution is also difficult to apply the same rate for 10 years or more from the time the plaintiff started the entertainment activities. In light of this, since the above exclusive entertainment contract of this case is in violation of Article 23 (1) 4 of the Monopoly Regulation and Fair Trade Act, Articles 103 and 104 of the Civil Act, and the defendant asserts that the new entertainment contract of this case is null and void at the time when the new entertainment contract of this case is no longer effective.

(2) Determination

However, the term of the contract of this case begins on January 3, 200, and ends on the tenth day after the sale of the first music record. The above term of the contract of this case is automatically extended for the above term if there is a period for which the plaintiff cannot engage in normal activities due to his personal information. The plaintiff's right to entertainment activities can be attributed to the defendant during the above term of contract, and the plaintiff is not obliged to engage in entertainment activities according to the defendant's instructions. And if the contract of this case is violated, the defendant is obliged to pay five times the amount invested in the plaintiff, three times the profits expected during the remaining term of contract, 00,00 won, and 2 times the amount of the contract of this case's exclusive entertainment contract of this case's exclusive entertainment contract of this case is no more than that of the plaintiff's exclusive entertainment contract of this case. The plaintiff's initial contract of this case's exclusive entertainment contract of this case is no more than that of the plaintiff's exclusive entertainment contract of this case's 10 years or more.

Furthermore, in a case where each provision regarding the contract term of the instant exclusive agreement and the estimate of the amount of damages is null and void as above, the whole contract becomes null and void, and Article 137 of the Civil Act provides that if part of the juristic act is null and void, it shall be null and void, but if it is recognized that the juristic act was conducted even without the invalid part, the remaining part shall not be null and void. Therefore, it is reasonable to deem that the contents of the said contract term correspond to the essential part of the instant exclusive agreement and that the said part would not have been concluded in the absence of the said part. Accordingly, the instant exclusive agreement shall be null and void.

B. Judgment on the defendant's argument

Although the plaintiff had been engaged in entertainment activities after entering into the instant exclusive contract, the defendant asserted that the above exclusive contract was null and void by filing a lawsuit of this case at the latest, is contrary to the principle of gold speech, but the above reasons alone cannot be deemed to be contrary to the principle of gold speech. Thus, the defendant's argument that the plaintiff's assertion that the exclusive contract of this case is null and void cannot be viewed as being contrary to the principle of gold speech.

3. Conclusion

Thus, the plaintiff's debt against the defendant under the exclusive contract of this case does not exist, and as long as the defendant contests this, there is a benefit to seek confirmation. Thus, the plaintiff's claim of this case is justified.

Judges Lee Young-young

Judges Choi Ho-young