LV terminates its cooperative relationship with Wu Yifan or faces huge compensation: unethical artists will be strictly investigated
On July 23, Louis Vuitton’s official Weibo post stated: In view of the relevant notifications, Louis Vuitton announced the termination of the cooperative relationship with Mr. Wu Yifan.
As things fermented, most of the brands have terminated their contracts with Wu Yifan and stated their positions, including Han Shu, Yunting, Liangpinpu, Libai, Ziyuan, Vantage, Depot, Master Kong Ice Tea, Tencent Video, Lebao Beer and other brands. Terminate the cooperative relationship with Wu Yifan.
Ding Wei, an industry insider in the film and television industry, revealed that Wu’s single endorsement fee is more than 10 million yuan. “Most of them are around 15 million yuan per year. It has declined in recent years. It used to be higher. The price was more than 20 million yuan. However, large sums of contract termination will involve huge compensation .”.
In view of the occurrence of incidents of artist failures, merchants or producers are now extra cautious in signing contracts. Attorney Zuo from Beijing Qinglv Law Firm told reporters that contracts such as advertising endorsements usually include clauses for artists to abide by art and morality. “Artists cannot be suspected of illegal crimes, prostitution, or violation of public order and good customs. Once such terms are violated and the brand image is affected, the contract clearly requires the artist to bear the responsibility for breach of contract, and the merchant reserves the right to unilaterally terminate the contract.”
The amount of compensation is linked to the amount of direct losses of the brand, and in some cases, unscrupulous artists will be required to return the endorsement fee. Insiders said that the compensation for liquidated damages generally does not exceed the total amount of the contract.
Large-scale contract cancellation, if calculated at the endorsement fee of 15 million yuan, the liquidated damages that need to be paid at least hundreds of millions of yuan. “In the past few years, celebrities signed endorsements, and there has been no requirement to lose money for negative news. He (Wu Yifan) may have signed many of them before.” Ding Wei believes that whether or not to pay depends on the terms of the contract.
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