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 The Reason Why Hankyung Brought in the Lawsuit Against SM

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Join date : 2009-07-31
Age : 25
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PostSubject: The Reason Why Hankyung Brought in the Lawsuit Against SM   Thu Dec 24, 2009 2:52 pm

These are 6 unfair points from Hankyung's exclusive contract with SM which are stated by Hankyung's side (not sure whether it's from his lawyer or his representative)

1. The contract has many provisions which are in SM's favor.

When the first contract was signed (January 2003) Hankyung was 18 then (underage) and being a Chinese person, he didn't know everything about Korean showbiz, so SM gave him a contract with the content that SM itself suggested.

Not only that, but also side agreements with SM after then (Febuary 2007 and December 2007) were only from SM, which means that Hankyung didn't have the chance to suggest provisions in his favor.

2. The period of the exclusive contract is 13 years, it is too long.

The first contract he signed stated that it will be ended 10 years after Super Junior's 1st album, but the second time it was modified it has been extended to 13 years. Super Junior's 1st album was released in December 2005, so the contract will be ended in December 2018 and Hankyung will be 35 then.

Moreover, if Hankyung does not take part in some activities because of his health or studies, the contract's period will be extended according to the situation, so it currently is 13 years on paper, but it could be longer in real life. This clause severely violates Hankyung's civil rights.

3. There is a clause stating that Hankyung will have to pay SM a large sum of money in case of breaking contract clauses or creating damages, thus this prevents Hankyung to cancel the contract itself, or some agreements on it.

If Hankyung wants to move to another company and continue his activities, he will have to pay SM threefold of the money that SM had invested to him and pay twofold for the loss of the remaining time of his contract.

4. The amount between Hankyung's rights and responsibilities stated in the contract are not the same.

Hankyung has to follow and attend all the schedule that SM gives him, he has to do/follow all SM's orders/intructions unconditionally, but he doesn't have a right to request for his contract to be revised.

5. SM has forced Hankyung to do some activities against his will.

During training time, if Hankyung was late, or absent, or didn't fulfill his duty, he would be fined 10,000 won (= USD 9 currently) for the 1st time, 20,000 won (= USD 17 currently) for the 2nd time, etc. After debut, if he was late or absent from his schedule, he would have to pay for all the damage; if he cuts the contacts with SM for more than 1 day according to the situation, SM can cancel his contract. And if he doesn't fulfill his duties, according to the situation he could be fined 5,000,000 won (= USD 4,245 currently).

According to the contract, Hankyung doesn't have any right to decide for his schedule, he has to follow SM's words and only attend the events/performances that SM's manager designed for him. Hankyung even had been forced to attend some activities because of SM's order when he was ill.

6. The profit distribution and copyrights between SM and Hankyung.

During the contract period, all the copyright of albums and song will belong to SM. Even if Hankyung were to write, compose, and/or arrange the songs, they can be used by SM without his permission.

As for the profit, the album has to sell more than 50,000 copies before Hankyung can receive 2% of the profit.
The digital sales have to be equal with the net profit before Hankyung can get 10% of the profit.
The overseas income has to be equal with the net profit too before Hankyung can get 60% of the profit.

As for overseas activities income, after SM deducts all the promotion activities expenses & fees, the remaining money will be divided among the group members.

Source: star.mt.co.kr
Translation: evanesco @ sj-world.net
Credits: sj-world.net
May take out with full credits, but don't add in your own.
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The Reason Why Hankyung Brought in the Lawsuit Against SM
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