Kang Daniel and LM Entertainment‘s legal representatives both appeared in court today to argue their stance during the court’s first questioning. Kang Daniel and LM Entertainment have been in a legal battle regarding the validity of Kang Daniel’s exclusive contract with LM.
Kang Daniel’s side stated that LM Entertainment violated his contract by transferring all exclusive rights to a third party company (MMO Entertainment) without his consent. As Kang Daniel believe LM has “broken the trust” between the two parties, he requests the contract to be terminated.
The essential part of our argument is that the rights to Kang Daniel’s 5-year exclusive contract with LM Entertainment for his music contents production and distribution, concert and foreign business deals, celebrity schedules and more, were all given to a third party.
LM also received a contract fee after selling the exclusive rights to [MMO]. The fee was tens of times more than what Kang Daniel received as a down payment.
Kang Daniel wasn’t told about the contractual details and decisions, and so he never consented to it. LM claims that they only delegated parts of the rights to MMO, but it’s no different from signing over the rights to the contract.
— Kang Daniel’s Legal Representative
LM denied their claims and stated that MMO is only an investor without any rights to make executive decisions. LM insisted that other management companies who wish to take over Kang Daniel’s management rights have been manipulating the situation to get the contract terminated.
LM also stated that they have solid evidence to prove the legality of their contract.
We never transferred the contractual rights to anyone. The rights to album productions, fan meetings, concerts, performance contracts, merchandise businesses, and more are still kept within the management. They also claim LM took 90% of the contract fee but that would be impossible if we had transferred the rights.
The contract was solely an investment deal from MMO Entertainment in order to support Kang Daniel’s promotions. Kang Daniel knew that he will be receiving help from MMO.
There are no precedents that claim a management company creating a joint venture to receive investments from another management company is the same as selling exclusive rights.
— LM Entertainment
As the legal battle continues, Kang Daniel left a message to his fans. He thanked them for their undying support and vowed to do the right thing.
First, I would like to thank the fans who’ve been sending their support and love. It’s unfortunate that the time I’m spending away from my fans continues to grow, but I want to walk the right path even if it is the slower pace. I’ll make sure to not let down my fans who’ve trusted me.
— Kang Daniel