Exclusive
'Will it work this time?' HYBE files for information disclosure order against YouTuber in US court

[비즈한국] It has been confirmed that HYBE352820 filed an application for an information disclosure order against Google in the U.S. District Court for the Northern District of California last September. In August, HYBE filed damages lawsuits against several YouTube channel operators at the Seoul Western District Court, and is now utilizing "discovery"—a U.S. federal court procedure for identifying individuals—to uncover their identities.

Requesting information disclosure from Google to identify YouTube channel operators

HYBE filed its application for an information disclosure order in the U.S. District Court for the Northern District of California, where Google’s headquarters is located, on September 9. HYBE, along with its subsidiaries Source Music and BELIFT LAB, submitted a petition requesting the disclosure of information regarding the operators of seven YouTube channels.

According to the application documents submitted by HYBE to the court, HYBE's legal counsel from Kim & Chang stated, "No one working on behalf of the petitioners has been able to identify the individuals who posted defamatory content on the relevant YouTube channels. Without this information, the petitioners cannot obtain relief in South Korean courts. Therefore, in order for the petitioners to proceed with civil litigation in Korea, the identities of the individuals who posted the defamatory content on these YouTube channels are required." The explanation is that while civil lawsuits have been filed against the YouTube channel operators, their identities remain unknown.

As supporting evidence, HYBE submitted the damages complaints filed in domestic courts by LE SSERAFIM members and their agency Source Music, ILLIT members and their agency BELIFT LAB, and HYBE itself against the operators of the seven YouTube channels. On August 30, HYBE filed eight lawsuits with the Seoul Western District Court, claiming that videos uploaded by these channels containing allegations of plagiarism by ILLIT, claims linking LE SSERAFIM to Dahn World and pro-Japanese sentiment, and criticisms of Chairman Bang Si-hyuk were "false information."

In response to HYBE's application for an information disclosure order, Google submitted a declaration regarding the company's information on October 4.

The discovery procedure requested by HYBE in the U.S. court is a process that allows parties to mutually disclose documents or evidence before a trial. No such system exists in South Korea. The discovery process became known domestically when IVE member Jang Won-young and her agency, Starship Entertainment, successfully identified the operator of the YouTube channel 'Taldeok Camp'. Previously, there was no way to verify the identity of a YouTube user in Korea even after filing a lawsuit, so they leveraged the fact that Google, which operates YouTube, is based in the United States.

Regarding the related lawsuits, HYBE stated, "We have filed lawsuits and taken other actions against the operators of YouTube channels that spread malicious rumors. We plan to respond sternly without leniency and will do our best to protect our artists."

However, it is uncertain whether the court will grant the discovery application. Previously, in June, HYBE filed for an information disclosure order against X (formerly Twitter) in the U.S. District Court for the Northern District of California regarding a specific user, but the request was denied.

Jang Geon, an attorney at BNL Law who is licensed in California, explained, "Google does not easily provide personal information even when requested by investigative agencies. That is why YouTube users have remained anonymous until now. Even if a trial is not taking place in the U.S., if an interested party is a U.S. citizen or a U.S. company, the discovery system can be utilized. However, because it is left to the judge's discretion, it is often denied. The case of Jang Won-young is an exceptional one."

The challenges facing 'giant corporation' HYBE

Concerns are also emerging that HYBE is pursuing an excessive number of consecutive lawsuits. Pop culture critic Kim Heon-sik said, "There are concerns about utilizing the discovery system because even legitimate criticism of a specific person could become the target of a legal battle. Also, due to the nature of the entertainment industry, it is bound to be different from other sectors, and these actions (lawsuits) may conflict with fan sentiment. While illegal activities such as privacy infringement should naturally be dealt with strictly, filing legal suits over fandom activities does not seem appropriate. I think an agency should prioritize responding to issues like impersonation accounts first."

According to HYBE's semi-annual report disclosed in August this year, there are 4 lawsuits where HYBE affiliates are the defendants, and 5 lawsuits where they are the plaintiffs.

There are also voices calling for HYBE, which became the first entertainment company to be classified as a large business conglomerate, to improve its governance structure. In 2023, the Korea Institute of Corporate Governance and Sustainability (KCGS) rated HYBE’s overall ESG grade as 'Weak (C)'. The KCGS ESG rating system is divided from S (Excellent) to D (Very Weak), and C signifies that 'a weak sustainability management system is in place and significant efforts are needed to improve the system.' Its governance grade was also rated C.

HYBE introduced a multi-label system for the first time among domestic entertainment companies, touting autonomy between labels. However, its governance is effectively a one-man system under Chairman Bang Si-hyuk. Bang Si-hyuk holds a 31.6% stake in HYBE, and major HYBE labels are subsidiaries of the company.

On the 4th, 'Kpop4Planet,' a group of K-pop fans concerned about the climate crisis, held a 'Plastic Album Sins' campaign in front of HYBE's headquarters. The purpose was to demand an end to predatory marketing tactics that encourage the purchase of large quantities of albums, such as through random photo cards.

Regarding this, HYBE stated, "HYBE is gradually expanding the introduction of eco-friendly materials with high recycling rates for albums and official merchandise, and is making multifaceted efforts to minimize the impact on the environment, such as by carrying out upcycling projects using waste from concert venues."