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.