How can a brokerage company avoid becoming a "pot bearer" of unscrupulous artists?

2021 10/13


Recently, the entertainment industry has witnessed an endless stream of startling events, which have greatly enriched the eyes of the melon eating masses. However, how much joy and worry do you have? In the face of the situation where celebrity artists have lost their virtue, leading to the high cost of early investment in film and television dramas being banned, removed from the shelves, and the termination of the endorsement brand contract, where should the brokerage company go? Will it become a "pot bearer"?

 

1If the brokerage company fails to fulfill its educational management responsibilities for the artist and fails to properly handle the immoral situation of the artist, the brokerage company shall bear corresponding responsibilities

 

On September 2, the China Performance Industry Association issued the "Announcement on Strengthening the Self-discipline Management of Performers' Brokerage Institutions", emphasizing that artists' brokerage institutions should bear the responsibility for the education and management of artists, should carry out self inspection and self-discipline, and should terminate the provision of brokerage services to artists who lack bottom line awareness and do not comply with constraints and guidance. Brokerage agencies that seriously neglect their duties and responsibilities and condone illegal and immoral behaviors will also be subject to industry self-discipline in the future.

 

It can be seen that brokerage companies are duty-bound to the education and management of artists. Brokers or brokerage companies that fail to assume responsibility for the education and management of artists, adopt methods of connivance and protection when an artist is found guilty of immorality, deliberately conceal information, and deliberately handle it through traffic control and evaluation. Not only will they be disciplined by industry self-discipline, but they may also be suspected of illegal acts. Under such circumstances, brokerage companies should naturally "pay" for their own dereliction of duty and misconduct.

 

In judicial practice, in disputes over the suspension of TV dramas and the termination of endorsement contracts due to the immoral events of artists, there are also many cases where it has been determined that the artist's image is reviewed and designated for use by the brokerage company, and the brokerage company has the obligation to ensure that the artist actively and positively promotes the brand. Therefore, in the event that the negative impact of the immoral events of artists leads to the termination of the contract between the investor and the brand of the TV drama, The court usually judges, based on the principles of honesty, credibility, and fairness, that brokerage companies and advertisers will provide certain economic compensation to film and television series investors and brands.

 

2"If the brokerage company has fulfilled its educational management responsibilities for the artist and has not taken any improper actions such as deliberate concealment when the artist is found to be immoral, the brokerage company may not assume responsibility and will not become a backer of the" immoral artist "."

 

When a brokerage company, as a manager and cultivator of artists, has fulfilled its responsibilities and obligations as a brokerage institution, in order to avoid becoming a "pot bearer", it is also necessary to clarify and pay attention to the following:

 

In practice, artists often sign contracts with film and television drama producers and advertisers through brokerage companies, individual studios, and affiliated companies as the main body, but their individuals usually do not directly sign relevant contracts. According to the "principle of contract relativity", in the event of an artist's immoral behavior or being listed as a bad performing artist, film and television drama producers and advertising chambers of commerce sue the brokerage company to assume liability for breach of contract compensation. Therefore, the risk of sudden scandals caused by unscrupulous artists can only be regulated by contract terms at present. Therefore, brokerage companies can clearly stipulate "ethical terms" in their brokerage contracts with artists, that is, when artists engage in "unscrupulous behavior," they should compensate the brokerage company for the losses caused thereby. In addition, when signing relevant contracts for participation in film and television dramas and endorsements, brokerage companies may also consider the artist as the subject of such contracts, and stipulate in the contract that if the artist commits "immoral acts," the artist shall bear the liability for breach of contract compensation.

 

In existing judicial precedents, there are also precedents that break through the relativity of the contract, and artists bear responsibility for the issue of whether film and television drama producers and advertisers cannot directly pursue responsibility against artists when they are not the contracting parties to participate in relevant film and television dramas or endorsement contracts, and their moral issues lead to losses.

 

For example, in the civil judgment (2014) Sanzhong Minzhong Zi No. 04287 heard by the Third Intermediate People's Court of Beijing, regarding the dispute case between Guangdong Juhao Lighting Electrical Appliances Co., Ltd. and Fan Bingbing and Beijing Meitao Zhongyi Culture Media Co., Ltd. over the service contract, The Beijing Third Intermediate People's Court has determined that: "Fan Bingbing did not sign the contract. However, judging whether Fan Bingbing is a party to the contract cannot be based solely on whether he signed the written contract, but rather on a comprehensive analysis of Fan Bingbing's rights and obligations in the contract and the performance of the contract. First, from the content of the contract, the core content of the contract is that Fan Bingbing uses his personal image as the endorsement of Juhao's products, and the contract includes Fan Bingbing." A number of rights and obligations have been established, and the core obligation among them is the obligation related to Fan Bingbing's personal identity as a certain behavior, which does not exist in dependence on Meitao. Secondly, judging from the performance of the contract, Fan Bingbing fulfilled the main obligations agreed in the contract. Thirdly, in the case of the dispute over the right to portrait between Fan Bingbing and Juhao Company, Fan Bingbing stated that he entered into a contentious contract with Juhao Company on June 16, 2009. This statement constitutes a legal admission, that is, Fan Bingbing recognized that he entered into a contentious contract with Juhao Company, and Fan Bingbing did not provide sufficient evidence to reverse his admission. Finally, during the trial of this case, Fan Bingbing stated that his performance of the contentious contract was the performance of the contract with Meitao Company, but he did not provide evidence to prove it. Based on the above analysis, this court determines that Fan Bingbing has completed his commitment to the offer of Juhao Company in the litigation contract through his own actions. "Fan Bingbing entered into a contract in" other forms "and is a party to the contract in dispute."

 

Through the above cases, the court determined that the sole criterion for determining whether an artist is a party to a contract cannot be based solely on whether he or she has signed a written contract, but rather on a comprehensive analysis of the rights and obligations of the artist in such participation in film and television dramas and endorsement contracts, as well as the performance of the contract, to reach a final judgment. The artist has completed his or her commitment to the offer in the litigation contract through his or her own actions. The artist entered into a contract in "other forms" and is a party to the litigation contract. The artist shall be responsible for the losses of the film and television drama producers and advertisers.

 

Therefore, in the face of the risk of "immoral artists", brokerage companies should first perform their own responsibilities, restrict and regulate the behavior of artists, and improve the terms of the contract to try to avoid becoming a "pot bearer".

 

(This article is translated by software translator for reference only.)