[INFO] 110221 SM’s Objection DISMISSED: [Summary / Explanation] 

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[TRANS] 110206 Penalty of Breach of Contract for Tohoshinki is Over 10 Billion Yen

The pioneer group of the K-pop boom in Japan Tohoshinki who went through a breakup turmoil recently appeared at a music event at Tokyo’s Yoyogi Stadium after one year and one month of silence. The group resumed their activities with two members Yunho (24) and Changmin (22) and received the unchanging warm welcome from their Japanese fans. Their new song “Why?” also acquired the top spot on Oricon Daily Chart on the day of its release.

However, in October 2009, in the midst of their breakup turmoil, Seoul District Court disclosed a “temporary measure” decision whose content was shocking.

“All rights and privileges that the group get from TV programme and stage performance as well as public activities in and outside of Korea belong to the production company.”

“All copyrights including the copyrights for lyrics, music, arrangement; reproducing right, duplicating right, recording right, distributing right, broadcasting right, performing right, karaoke distributing right, and the right to produce secondary products are all transferred to the company.”

An official who knows a lot about Japan & Korea’s entertainment industry explained:

“In Japan, artists are paid a part of their singing right, and copyrights of lyrics, music and arrangement. At that time, among the 5 members, each other them were paid 0.4-1% of their profits. Moreover, if they were not able to sell more than 50,000 copies, then there would be no guarantee for their pay.”

There was also a penalty. If there was a violation in the contract, then they will be required to pay a total amount of 3 times of the investment to be made on them plus 2 times the profits during the rest 6 years of the remaining contract as compensation. “The penalty for breach of contract is more than 10 billion yen ($121 million),” said the official.

During the breakup turmoil, Jaejoong (24), Yoochun (24) and Junsu (24) performed their activities in Korea and other countries under the name “JYJ” while still being in a conflict with their former agency.

Recently, Junsu made a comment about his former agency on Twitter, “I thought that the 5 of us thought of him/them as our enemy… but you don’t seem to see him/them as your enemy,” expressing his feelings of distance with the other 2 members.

The support of the fans are also complicated. There are fans who say, “I want to see the 5 of them once again,” and there are also fans who severely criticizing the 3 members calling them “ungrateful”. The style of Korean entertainment industry is to invest largely in their idols, bind them with long-term contracts, and carefully train the newbies. It is probably hard for Japanese to understand this style, but with that force, the Korean wave is currently sweeping over Asia.

T/N: The source is a source affiliated with Sanspo, one of the biggest newspapers in Japan.

source: Zakzak
translation: linhkawaii @ OneTVXQ.com
credits: OneTVXQ.com { One World. One Red Ocean. One TVXQ! }
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[TRANS] 101116 TVXQ-SM Battle In Court Concerning The Validity Of Their Conctract

TVXQ’s 3 members (Kim Jaejoong-Kim Junsu-Park Yoochun) and SM Entertainment battled fiercely in court over the question of the validity of their exclusive contract.

At the hearing of Civil Case No. 48 (Chief Prosecuting Attorney Lee Lim) at the Seoul District Courts on the 16th, the first date of pleading, the representatives of SM and the trio refused to back down from their stances as they respectively stated, ‘TVXQ’s contract period of 13 years was inevitable for their entrance into foreign markets’ and, ‘The period of the contract was decided upon without the consent of the members.’

SM’s legal representative explained that, “The period of the contract was agreed upon as both sides shared mutual financial purposes and motives,” and “As TVXQ was created with the purpose of targeting foreign markets from the start, the long contract period was an established and agreed upon prerequisite for a stable entry into foreign markets.”

He emphasized that, “If there was a lack of support or an unfair income distribution during TVXQ’s activities, the exclusive contract would be a problem, however, TVXQ has always received the best treatment possible that is far superior to that of other artistes in the industry.”

Also, the representative added, “The trio did not raise a single objection regarding the content of the contract since their debut, until they decided to bring up the problems of the exclusive contract after they clashed with the agency on the issue of the cosmetic company they actively invested in during the months of 2008,” and “They have been neglecting their activities, stating the lawsuit as a reason for their neglect, and because of this, the other members and the agency have been incurring immense damages.”

Regarding this, the trio’s legal representative refuted the previous statements as he said, “The Fair Trade Commission has acknowledged seven years as the maximum length of a contract,” and “TVXQ’s contract was invalid from the start as there have always been unfair clauses within the contract including unfair income distribution, excessive compensation penalties and a contract period that is too long.”

He emphasized that, “We cannot accept SM’s stance and the agency’s claim for compensation when their entire argument is based off an invalid contract,” and “Before we pick at anything else, we must make it clear whether this contract is valid or not.”

(omitted)

The next hearing will be held on December 7th, at 2pm at the Seoul District Courts, and two SM employees will attend as witnesses and testify on what the situation was like when the contract was signed.

Source: [Newsis]
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[NEWS] 100813 Court invalidates ‘slave-like contract’ for entertainers

The Supreme Court upheld a ruling that long-term contracts between entertainers and their agencies are unfair and therefore invalid.

The top court Friday invalidated a contract putting an entertainer under the control of his agency for as long as a decade, saying the contract restricted freedom.

This verdict is expected to put the brakes on entertainment agencies’ long-established practice of controlling its stars for as long as possible with slave-like contracts.

Woo Sung-hyun, a 20-year-old member of popular boy band U-Kiss, filed a suit in 2008 challenging his contract, calling it “unfair.”
In 2006, Woo signed with the agency, Ssing Entertainment, a 10-year contract that stipulated if his performances were suspended due to health problems or mandatory military service, the inactive period would be added to the term.

Any acts violating the terms cost the singer a financial penalty three times the agency’s investment in him, according to the contract.

A district court ruled in favor of Woo, saying, “The first ten years after his debut album constitute virtually his entire life as a singer. Given the nature of the industry, the contract term is unfair and excessively infringes upon his rights.”

An appellate court upheld the decision.

Such excessively binding contracts in the showbiz industry came to light when three members of the popular boy band TVXQ filed a suit against its agency, SM Entertainment, to invalidate what they called “life-long slave contracts.”

The three ㅡ Micky, Xiah and Hero ㅡ claimed their agency prohibited their freedom as artists by forcing them to follow the agency’s demands to appear at certain performances and broadcasts for 13 years. The litigation is still underway.

The dispute led to the country’s fair trade watchdog drawing up guidelines for entertainer-agency contracts, which set the maximum length at seven years. They also ban an agency’s excessive intervention into employees’ private lives.

By Park Si-soo
credit: koreatimes
shared by: sharingyoochun.net

[VIDEO+TRANS] SM, 2.2 billions won of compensation from 3 people of TVXQ

credit: ystarchannel1

“SM, 2.2 billions won of compensation from 3 people of TVXQ”

Reporter 1: Next news, TVXQ on trial.
Reporter 2: DBSK 3 members Hero Jaejoong, Micky Yoochun and Xiah Junsu of Dong Bang Shin Ki have been sued for 2.2 billion won by SME. SM director is claiming 2.2b won compensation for damages incured by the cosmetics business and the cancellation of a concert in Shenzhen. The exact amount of damages will increase this potential amount once the charges will be determined.
Reporter 1: It’s seems like they couldn’t get over it.
Reporter 2: Indeed. Last year, on the 31st July, TVXQ three members filed a disposition application against SME to terminate exclusive contract effect at the Seoul Central District Court. Last October, the Court issued an initial decision in favor of the three TVXQ members by allowing them to keep doing entertainment activities. Since then Micky Yoochun and the others members started their own activities. SM breaks down the possibility of dialogue and concluded to this lawsuit.
Reporter 1: The eventual disbandment of TVXQ and the activities cessation became a serious topic. I think that the lawsuit became concrete.
Reporter 2: TVXQ local activities were suspended but continued in Japan. But despite the album released earlier this year, the 5 members didn’t work at the same time. Japanese agency announced activities suspension that leads to a disband at the end, now that both sides’ position are so far. It was said that the 3 members would give a response as expected. Civil lawsuit takes usually more than 3 years to be established. Unless a dramatic reconciliation of TVXQ, it will be hard to see the 5 of them on stage.

trans by: Kenoa@sharingyoochun
shared by: DBSKnights

[TRANS] JaeChunSu: The Truths & the Lies

Most of this is old news so I've only translated a summary of the article.

1. What is the point of this article?

Ever since the three members filed the lawsuit, the internet has been flooded with unconfirmed reports and false claims, and such rumors have spread to fans in foreign countries including China and Japan etc. The point of this article is to clear up some of the rumors about the three members so that they will not be wrongly accused.

2. Did the three members demand 10 billion won each from SM?

The trio's lawyer Lim Sang Hyuk stated that '”We have asked that SM Entertainment pay each member one billion Won first. The amount we file for compensation will increase but ten billion Won, which is the amount reported in some news articles, is a false report. We have not yet decided upon a final compensation amount.”

Whilst the trio have not filed lawsuit seeking a compensation of this amount, reports of them demanding 10 billion won from SM have spread quickly throughout the Korean media and such erroneous reports have yet to be corrected. This is a typical SM strategy: 'adding a zero after the initial figure' to mislead the audience, the same tactic was employed in the case with Crebeau, where members of the public were misguided and manipulated.

According to SM's contracts, if an artist were to violate the contract, then they would have to pay a sum of 400 billion won.

3. Did the letters 'CJ' appear in 'Heaven's Postman'?

Funds for the production for 'Heaven's Postman' came from the Korean Film Council, the financial industry as well as the distributing company itself.

There are 2 possible explanations for 'CJ' appearing in the movie:

1. During the filming of 'Heaven's Postman', Youngwoong Jaejoong was still under SM Entertainment. The production company accepted funds from CGV (a company under CJ which is also responsible for the production of Changmin's TV series)

2. 'Heaven's Postman' is distributed by CJ

4. Is the trio's new manager involved in triad activities?

Kim Yong Ho wrote two articles in total; the first claims the trio's manager to be a triad member whilst the second clarifies that he is not. Unfortunately, whilst the first article has spread to countries outside of Korea and Japan, the second has not gained much public attention.

Such harsh accusations not only lack reliability, they can also be considered slander against the three members.

5. Is there a big-name company funding the production of JaeChunSu's worldwide album?

The production and distribution of the trio's album will be managed by a company in the US, but the album itself is targeted at audiences throughout Asia.

6. What is the intent of spreading these false reports?

SM is manipulating the three members' status as artists to impair their image and make the three of them lose value.

By stirring up conflict and prolonging the lawsuit, SM hopes to minimize the company's losses.

7. What should we do as fans?

Whilst SM has persisted in misleading the public by spreading lies and rumors, the three members have yet to do anything to defame SM. When faced with large corporations such as SM, as powerless individuals, there is nothing we can do other than to accept the company's manipulation through the media.

Fans of all people, should understand that 'If there weren't an unfair contract, then there wouldn't be a lawsuit'

As fans, we must distant ourselves from these fictitious reports and rumors and calmly await the decision of the court. In the mean time, please continue to look over and protect the trio.

(omitted)

Credits: TVXQBaidu + poplez

Trans by: dorfehh@DBSKnights

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[NEWS] SM Entertainment will respond actively to TXVQ trio’s demand for compensation of 30 billion KRW

Admin: We are just sharing this news from sookyeong/kbites. Any wrong information are not DBSKnights' mistake.

SM Entertainment’s official stand on Dong Bang Shin Ki trio’s lawsuit to demand for compensation is that they will be responding to the lawsuit actively.

News surfaced on 28th June reporting that the trio had demanded for a total of 30 billion KRW in compensation from the agency. And SM’s response to that was, “We will be responding actively to the lawsuit for compensation through our legal representatives.”

News reports have also surfaced quoting that the lawsuit is of no problem for SM Entertainment since it has at least 50 billion KRW in cash reserves.

Source: MyDaily
Credits: Kbites
Shared by: DBSKnights

[TRANS] 100629 Detailed Contents Of Exclusive Contract Invalidity Confirmation

Submitted by SM to the Financial Supervisory Service
1. Title of Incident
Exclusive Contract Invalidity Confirmation

2. PlaintiffㆍApplicant
Kim Jaejoong, Kim Junsu, Park Yoochun (Members of TVXQ)

3. Contents of Lawsuit

* 1. To confirm that the effectiveness of the exclusive contract between the plaintiffs and the defendant is no longer valid.
* 2. The defendant must pay each plaintiff 1,000,000,000 Won and must pay an interest of 20% per year from the day after an initial payment is made until the money is fully paid.
* 3. Clause 2 may be executed provisionally.
* 4. All lawsuit expenses will be covered by the defendant.


4. Compensation Amount

* Compensation Amount (Won): 3,000,000,000 Won
* Equity Capital (Won): 63,375,222,440 Won
* Ratio of Equity Capital (%): 4.7%


5. Competent Court
Seoul District Courts

6. Countermeasures to be Taken
The company in question will actively deal with this incident through their legal advisers with the lawsuit and claim for damages that were filed on April 12th, 2010 by the company in question.

7. Date the Lawsuit was Submitted
2010-06-25

8. Date the Lawsuit was Confirmed
2010-06-29


Source: [Financial Supervisory Service+DNBN]
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[TRANS] 100706 SM-Congressman Jo Moon Hwan Vow To ‘Protect Celebrities’ Rights And Interests’

Entertainment agency SM Entertainment and Congressman Jo Moon Hwan of the Grand National Party have joined hands to protect celebrities’ rights and interests.

On the 6th at 9am KST, a ‘Proclamation Ceremony for the Establishment of a Developing Contract Relationship in the Entertainment Industry’ was held in Room 128 in the National Assembly Congressional Hall. This ceremony was attended by Congressman Jo Moon Hwan (State Affairs Committee), SM CEO Kim Young Min, and Girls Generation in order to protect the rights and interests of celebrities as well as to ensure that a mutual trust exists between entertainment agencies and celebrities.

This proclamation ceremony was attended by Congressman Jo Moon Hwan, SM Entertainment and Girls Generation in the hopes of creating a sound environment to create and maintain an expanding contract relationship in the entertainment industry.

Congressman Jo Moon Hwan has been criticizing the contract relationships between celebrities and entertainment agencies since the last parliamentary inspection of the administration till now, and through rigorous inspections of small and large entertainment agencies, demanded that unlawful clauses, such as those which violate personal privacy, be removed.

SM stated, “Over the past months, SM has been holding numerous discussions with Congressman Jo Moon Hwan to protect the rights and interests of celebrities as well as aid in the development of the entertainment industry,” and “A conclusion was made that SM has developed a contract that reflects the reality of the entertainment industry and focuses on the protection of the celebrities’ rights and interest, and this contract has been implemented with SM’s celebrities and trainees.”

SM and Congressman Jo Moon Hwan will continue to converse on the matters of contract relationships between celebrities and entertainment agencies in the future.

Source: [joynews+Yuaerubi]
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More trans/news under the cut
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[TRANS] 100706 SM CEO Kim Young Min States, “We Will Become The Forerunners In Solving Contract Issues”

Kim Young Min, CEO of SM Entertainment, stated, “It’s unfortunate that because of a certain chain of events and several reports, the relationship between agencies and celebrities is becoming distorted,” and “We will become the forerunners in solving contract issues.”

CEO Kim stated this when he attended the ‘Proclamation Ceremony for the Establishment of a Developing Contract Relationship in the Entertainment Industry’ that was held on the 6th.

CEO Kim stated, “All entertainment agencies will have celebrities who rise to fame or die out. All of them tried to make their dreams come true and it was and is the entertainment agency who provides the celebrities an environment to do so.”

He continued to say, “We are stuck in a frame that forces us to choose between personal interests and business, human rights and the economy,” and “In order to achieve a dream, a promise is made between agencies and celebrities in the form of a contract. We should not have to choose between personal rights and business. We are participating in this project in order to find ways to help the Hallyu Wave, and create an economy that protects the rights of celebrities as much as possible.“

Source: [edaily SPN]
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———————————————-

[TRANS] 100706 Kim Tae Hyung “Seven Years For Celebrity Contracts Is Too Short”

Former singer Kim Tae Hyung, director of the Korean Entertainment Production Committee, criticized that a seven year limit on celebrity contracts is not realistic.

Director Kim Tae Hyung attended the ‘The Results and Measures to Develop the Celebrity Standard Contract After One Year of Implementation’ meeting as part of the panel and stated, “It is not realistic to set a limit of seven years on celebrity contracts.”

He stated, “If the standard contract is followed, a trainee has to pay back the investment made to them by the entertainment agency in 2~3 years,” and “But this is impossible. Putting overseas expansion into consideration, the limited number of years for a contract should be lengthened.”

He also explained that, “Of course, the Fair Trade Committee has stated that a renewal of a contract is possible after seven years but this too is unrealistic,” and “When seven years pass, celebrities do not think about the past or their beginning, they only think about the present. That is why the worth that they demand for their work increases dramatically.”

He continued to say, “Not all singers can produce hit songs, so will all celebrities really be able to repay their agencies for all the investments put into them?”

Director Kim then continued to criticize each and every ambiguous expression in the standard contract.

Source: [star money today]
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[TRANS] 100706 Kangta "Celebrities Must Be Held Responsible For Their Contracts As Well"

"If they have signed a contract, celebrities must keep that promise"

Singer Kangta has stressed that celebrities, not only entertainment agencies, must be held responsible for problems in contract relationships in the entertainment industry.

Kangta attended the meeting held at 10 am KST at Room 128 in the National Assembly Congressional Hall. The meeting, named 'The Results and Measures to Develop the Celebrity Standard Contract After One Year of Implementation', was held to talk of the use and problems of the stand celebrity contract as well as ways to improve the situation in the entertainment industry.

Kangta stated his opinions on the development of the standard contract based on his own experiences as a celebrity.

Kangta stated, "Because the mentality of 'A celebrity who has broken a promise once, will probably do it again.' exists, I hope that people reflect deeply on the consequences before they sign a contract. And when they do sign a contract, they must keep that promise."

Regarding the relationship between celebrities and entertainment agencies, Kangta stated, "I don't think that celebrities and agencies are in an employer-employee relationship or a 'master an servant' relationship. I personally think that from the moment a contract is signed, the two become partners who complement each other."

He also said, "No matter how many clauses are in a contract, if there is no trust as partners between the two sides, that contract will not benefit either side," and "I hope that agencies lead celebrities to the right path, not only as celebrities but as a partner in business. And when these celebrities fall for temptation is goes astray, I urge agencies to become advisers and lead celebrities back to the right path."

Kangta stated, "Contracts should be signed and created based on each individual's situation and plans," and pointed out that contracts need to become more detailed to match each person.

He also said, "It is not sensible to choose a set contract period and ignore each person's situation. It would be better for all if each individual was given a contract that fitted their individual circumstances and situations."

Kangta first entered the entertainment industry as a member of HOT in 1996 and has since worked with SM Entertainment without changing entertainment agencies for the past 15 years.

Source: [edaily SPN+Yuaerubi]
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