Japanese Government: Talent Agencies Cannot Prohibit Former Clients From Performing Again
posted on by Jennifer Sherman
The Japan Fair Trade Commission (JFTC) announced on Wednesday that it has concluded that talent agency contracts that prohibit former clients from performing for a set period after their contracts expire are a violation of Japan's Antitrust Act. The group determined that when talent agencies use their positions of power in this way in contracts, it creates what the Antitrust Act refers to as "abuse of a superior position."
Such contracts were previously permitted in a limited scope, but they will now be prohibited. The JFTC is informing talent agencies through industry associations.
The JFTC determined that such contracts unfairly limit performance activities, preventing competition among agencies and performers. Supporters of the change believe that reviewing contracts may improve the treatment of performers, increase the number of performers changing agencies, and promote production of works more attractive to fans.