H.O.T. Wins the Battle for their Name: Who Owns a Band's Moniker Post-Contract?
"It's like not being able to call your own father, 'Father'." This isn't a line from the classic tale 'Hong Gil-dong', but a real-life scenario currently unfolding in the K-pop industry in 2023. As the K-pop industry continues to industrialize, high-profile idol groups find themselves embroiled in intense trademark battles to fully claim their rights. While instances of siding with the stars - the real bearers of popularity - are increasing, lengthy court disputes often put a dent in their activities and tarnish their image.
The first-generation idol group, H.O.T., recently won a trademark lawsuit that lasted for over five years. On the 23rd of last month, the second division of the Supreme Court dismissed an appeal against a lower court's ruling, which had ruled against Kim Kyung-wook, the former CEO of SM Entertainment, in a trademark infringement lawsuit filed against the concert promoter who organized H.O.T.'s reunion concert. Kim, who led H.O.T's agency from 1998 to 2005, has long claimed ownership of the trademark. When H.O.T. planned to host a reunion concert in 2018, he demanded royalties, leading the group to perform under their full name, 'High-five of Teenager'. Kim then filed a lawsuit alleging copyright and trademark infringement. Similarly, Shinhwa, another group that debuted during the same era as H.O.T., managed to reclaim their name after a 12-year-long battle over trademark rights in 2015.
Following such disputes involving first-generation idol groups, music agencies are taking measures to preemptively secure the rights to their group names. Attempts are made to prevent the individual usage of the group's name once the contract renewal fails. However, as the skills of group members are emphasized during their growth, there's an increasing reluctance to accept unilateral trademark registration by the agency, leading to monopolization of the rights.
The agency of girl group T-ARA had its trademark application rejected in 2018. The Patent Office stated, "As it involves the name of a well-known celebrity group filed by the agency, it cannot be registered under Article 34, Clause 1, Item 6 of the Trademark Act." The group NRG also attempted to register a trademark but it fell through due to a lack of agreement between the agency and the members. Likewise, Source Music, under Hybe, had its trademark application for the name 'G-Friends' refused.
Lawyer No Jong-eun of the law firm Existence explained, "A trademark verifies that a brand has value worth protecting by the Patent Office, but it does not mean that the rights are completely vested to a particular party like a real estate registration. Legal disputes often arise over the ownership of rights." He added, "While an agency can freely register a trademark when the group is new and has little brand value, it becomes difficult to assert rights by registering a trademark without the members' consent once they become stars. The Patent Office also considers 'who built the brand recognition?' and 'who is the main subject that the recognized brand value belongs to?' when making a judgement."
On the other hand, there have been cases where agencies have transferred trademark rights to the members on a large scale. GOT7, whose exclusive contract with JYP Entertainment ended last May, is currently operating under their original name after the rights were transferred to them. JYP, who acquired the trademark rights related to GOT7 in 2014, returned them to the members without any conditions. Earlier this month, the trademark rights of the group Infinite were also transferred for free to the members after their exclusive contract ended. According to KIPRIS, a trademark registration inquiry service, 'Infinite', which was filed for trademark by Woollim Entertainment in 2010, was transferred and registered to Infinite Company, represented by group leader Kim Sung-kyu, on April 21 this year.
The transfer of these two groups' trademark rights is being hailed as a model case in the K-pop market. It's significant because a considerable number of idol groups cannot use their original name after their maximum seven-year exclusive contracts, as stipulated in standard contracts, end and disputes arise leading to disbandment. The Ministry of Culture, Sports, and Tourism has been recommending since 2018 that 'after the expiration of the contract period, the rights to trademarks, etc., must be transferred from the agency to the singer'(Clause 8), but has also added that 'if the agency has made a special contribution, such as investing a significant amount of money in developing the trademark, it may demand a reasonable fee'. This means that legal disputes are inevitable if both sides fail to reach an agreement.
A representative of a mid-sized music agency said, "There are quite a few cases where trademark disputes are carried out with the mentality of 'if I can't have it, I'll ruin it'. As a result, both the agency that has lost the members and the members who have lost their group name can't work, causing a major loss in an industrial aspect." He further advised, "As K-pop stages expand worldwide and the lifespan of the groups extends, it's important to find a proper agreement point regarding trademark rights to prolong the life of each group. This is a way to protect intellectual property rights that have been painstakingly built."
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