Jurisdiction and Choice of Law Issues in Agency Agreements

In drafting and negotiating a Korean commercial agency agreement between a principal located in one country and an agent located in another country, proper consideration needs to be given to the choice of law regarding the governing law and jurisdiction of such an agreement. Jurisdiction determines which country’s courts will hear any proceedings that may be brought in relation to the agreement, whilst governing law is the law that shall be applied by the courts hearing any such proceedings that may arise under the agreement. Ideally, the parties to the agreement should expressly agree as to choice of jurisdiction and governing law. A governing law clause will set out the parties’ choice of the law that will apply to the parties’ agreement, and a jurisdiction clause will set out the parties’ choice as to jurisdiction. These aforementioned clauses are – in general – considered by any courts (for the exemptions

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A “Tasty” Exclusive Agent Agreement for Artists & Entertainers in Korea: Entertainment Law Basics in Korea

The Fair Trade Commission of Korea (FTC) created a sample standard-form Exclusive Agent Agreement for Entertainment Agreements, in Korea, that was, recently, challenged by the Chinese Band Twin Duo “Tasty.” The Chinese band filed a lawsuit against the Korean entertainment company – SM C&C – in order to invalidate a 7-year exclusive agent agreement – claiming that because of major differences with the Korean entertainment company, the relationship between the parties was frustrated.  SM utilized a standard-form agency agreement that was developed by the FTC. In 2015GaHab19327, the Seoul Central District Court ruled, among other things, that: The FTCs standard-form agency agreement is presumptively valid in the entertainment business in Korea. The Seoul Central District Court, further, noted that the intent of this exclusive agreement was not to bind the entertainers to long terms, thus, the FTC made the standard-form exclusive agency agreement term at seven years in order to

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