Case of Confirmation of Right to Use (Reiwa 5 (Wa) No. 273)

In 2025, South Korean entertainment powerhouse HYBE Co., Ltd. filed a lawsuit at the Tokyo District Court against Japanese music conglomerate AVEX Inc. The case, Reiwa 5 (Wa) No. 273, sought judicial confirmation of HYBE's independent right to exploit certain artist-related content, including music and likenesses of globally renowned groups, within the Japanese market. HYBE challenged the scope of an older exclusive distribution agreement, arguing that it did not grant AVEX perpetual control over digital and merchandising rights. AVEX counterclaimed, insisting the contract provided comprehensive exclusivity. The court scrutinized contractual language drafted during the early expansion of K-pop into Japan, examining the intent of clauses regarding new technology and platform usage. The high-profile nature of the artists involved drew intense media and investor attention.

The Tokyo District Court ruled partially in favor of HYBE, confirming that the original agreement did not encompass unlisted digital platforms developed after the contract's signing. The court dismissed AVEX's request for an expansive exclusivity injunction, directing both parties to renegotiate revenue sharing for future digital usage.

The central dispute focused on the interpretation of an exclusive licensing agreement, specifically whether the contract granted the Japanese distributor perpetual and unbounded control over newly emerging digital platforms and derivative merchandising rights, or if such rights reverted to the Korean rights holder once the initial promotion term ended.

The ruling sent ripples through the Korean Wave entertainment industry, prompting numerous Korean agencies and Japanese distributors to re-evaluate decades-old contract templates. It underscored the necessity of specifying digital rights in cross-border entertainment deals and was credited with accelerating joint ventures rather than exclusive distribution models, thereby reducing future legal friction in the Japan-Korea cultural exchange corridor.