TVXQ vs SM Debate at Court

Exclusive contract .. “lifetime contract” vs “for overseas expansion”

DBSK side: “Other famous agencies only have 5-7 years contract with their artists, in coherence with Korea Fair Trade Commissions which allows maximum 7 years for exclusive contact period, not as many as SM which lasts until 13 years.”

“Most idol singers’ active period is during the prime of their life. Therefore 13 years contract can be viewed as a lifetime contract.”

“In addition, if they terminate the contract during half way period, the penalty of sum of total investment and loss will cost up to 100 billion won which is the long term contract device to not allowing the artist to escape.”

SM side: “We already made several times modifications at the contract, in each and every points FTC can not accept. Also, if the artist wants to go international, they can’t choose but to have a long term contract.”

“We already had plan in our hand to do S.E.S record expansion with Japanese famous label back then, but it’s failed since they couldn’t take SM exclusive contract.”

“BoA, Kang Ta, and other artists engaged in overseas activities have exclusive contract period for 15 years. In order to get a result for overseas activities, we need a long period of time, we cant help it.”




◇ Revenue distribution .. “it should be proportional to income” vs “They’re agreed facts”

DBSK side: “The three members think that they do not get distribution revenue fairly to their proportional income. We respect SM business secret, but we also demand an exact calculation data about the income.”

SM side: “We released settlement data about each member publicly every six month. In fact, last February, all 5 DBSK members’ parent had signed the settlement and made an agreement about the contract.”

DBSK side: “The three members are still young men and don’t even know the content of settlement they had just signed. When our lawyer asked for re-statement of accounts, with reasons that it’s secret, the company refused to provide the data. Later on, SM only invited the members without any legal companion to look and talk about the data.”




◇ Cosmetics business .. “a common example,” vs “the nature of the case”

The lawyers of DBSK’s 3 members refused to make further comment about cosmetic business which is believed by SM side to be the nature of the case. “They do not put big investment in the cosmetic business and it’s a common incidental income among artists to have. We did not feel that money was the problem in this lawsuit so we did not talk about it on its own.”

SM side: “But the 3 members who applied this case are all the owners of cosmetic business. It proves that this is the main reason of this case.”

“As cosmetic business owners, the members will expose their image in to any events held, as well as in the homepage. And it’s considered as violation to the exclusive contract. SM should ask them to self-control regarding such kind exploitation because it has possibility to decrease the shock (exclusivity) of DBSK overall images.”




◇ DBSK will continue….

SM side: “Through this lawsuit, we hope to resolve any misunderstandings with the applicants (3 DBSK members), to deepen trust therefore we can together lead the future 2nd Korean wave. The star and agency, we want to grow together as their companion.”

“We have unlimited affection to the applicants and right now we’re seeking a long-range plan vision to debut them in Hollywood, United States. We hope this case can be resolved.”

DBSK side: “If you look at Shinhwa, although each member is in a different agency, they still perform as one group and the three members, even if they move agencies, do not wish to disband. As TVXQ, they don’t want any separation among the members.”

“The three members have a deep feeling towards SM, but they’re ready to accept any possibilities this case might leads in the future.”

source: star.mt.co.kr
summarized trans: sharingyoochun@wordpress

Sachie wrote:

DBSK side: “If you look at Shinhwa, although each member is in a different agency, they still perform as one group and the three members, even if they move agencies, do not wish to disband. As TVXQ, they don’t want any separation among the members.”

First and foremost, I may not be a big fan of DBSK but I do have a soft spot for the group and its' members (how could I not? DongBangJunior love is hard to resist!) so please do not take what I'm going to say the wrong way. I don't want to be a downer, but I think this scenario would be nearly impossible for them if they change agencies. What happened with Shinhwa was entirely different. How so?

1. Eric moved the WHOLE group to Good Entertainment. All six members signed up under one label and they were given more control over what was in their contracts.

2. From 2003-2007, Good handled the career of all Shinhwa members - this includes the solo projects of each member.

3. When their contract was up for renewal on 2007, only Shin Hyesung stayed with Good. The other 5 members declined and instead, formed their individual management companies. The companies that are representing Eric, Minwoo, Dongwan, Junjin and Andy are companies that they legally own... thereby giving them complete control over the things that they can and can't do.

This is how they continue on as Shinhwa. Shinhwa, the group, is signed to Good. One member is still tied with Good Ent. The others, since they manage themselves, can twist their own schedules so that they can work on the group's projects. Their solo efforts are timed around the lull in Shinhwa activities, not the other way around. There is also an understanding between the members and the company that each of them should have time to concentrate on their individual projects.

If Jaejoong, Yoochun and Junsu join another agency, I highly doubt that SM would let them continue with DBSK. See, if they continue on with DBSK activities, that means that their new agency would have to come to an agreement with SM as to how the profits should be split. LSM, being the greedy pig that he is, would never allow anyone to undercut his earnings. Also, it would not be beneath SM Entertainment to pull some underhanded stunts so as to make their lives miserable even if they come to an agreement with the three boys' new agency.

In order to save DBSK, either:
1. SM gives in and drafts a new (and fairer) contract for ALL DBSK members,

2. Jaejoong, Yoochun and Junsu give up and apologize to SM (although for the life of me, I do not see any reason why they should... they are only fighting for what's right.)

OR

3. Yunho pulls an Eric and decide to move ALL five members to another agency.


I, personally, would love to see number 3. I think DBSK would benefit more if they are to leave SM and branch out on their own. Just look at JTL and Shinhwa. JTL might not have lasted long but they were one of the three groups that have won the MAA Favorite Korean Artist Award (the other two being Shinhwa and Super Junior).

woah i want to know more^^
Its getting scarier!!!

im hoping for the option number 3 as well
*crosses fingers*