[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

Credits: koreatimes
Shared by: sharingyoochun.net + 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
Shared by: DBSKnights

[TRANS] 100629 Daewoo Says SM Possesses At Least 50 Billion Won In Cash.. The Lawsuit Is Not A Problem

Daewoo Securities Co. Ltd. stated on the 29th that although SM's stocks (041510) (12,950 Won, -3.00%) are plummeting due to the TVXQ lawsuit issue, the dip is nothing to greatly worry about.

Kim Chang Won of Daewoo Securities Co. Ltd. Research Center stated, "The current situation is a good opportunity to buy," and "SM has at least 50 billion Won in cash reserves, so they will be able to easily cover a 3 billion Won compensation lawsuit."

"Their second quarter sales will exceed the ballpark figure," and "In the third quarter, SHINee and BoA's domestic activities, Girls Generation's Japanese activities and Super Junior M's Chinese activities will reap great rewards."


Source: [edaily+Yuaerubi]
Translation credits: jeeelim5@tohosomnia.net
Shared by: tohosomnia.net

[TRANS] 100628 Trio's Lawyer States, "10 Billion Won Is A False Report"

(omitted)

On the 28th, Lawyer Lim Sang Hyuk of Sejong stated, "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."

(omitted)
(₩1,000,000,000 ≈ $830,000 USD ≈ ¥74,151,000)


Source: [isplus joins+Yuaerubi]
Translation credits: jeeelim5@tohosomnia.net
Shared by: tohosomnia.net
Do not remove/add on any credits

[TRANS] 100628 TVXQ's Trio 'SM should pay 30 billion won'

Idol group TVXQ's Trio have filed a lawsuit against SM Entertainment to terminate the effectiveness of their exclusive contract.

According to Seoul District Courts on 28th, Hero Jaejoong (kim Jaejoong), Xiah Junsu (Kim Junsu), Micky Yoochun (Park Yoochun) stated that, 'SM advocates that in order to expand the overseas market, 13 years of contract is a must. However, it is unreasonable and non understandable.', 'Even the contract can be terminated, members still need to pay compensation fee for the damage, the amount is too big and unreasonable.'

Three of them stated that, 'Since the exclusive contract is invalid, so SM should consider TVXQ's income as unreasonable income, ' SM must first pay each member 10 billion won, with a total of 30 billion won'. and advocated that, ' From 60 billion won TVXQ has earned till now, SM must pay each member 10 billion won ultimately after divided the total income and minus the additional cost.'


They submitted 'near life-long exclusive contract suspension injunction' to court in July last year. In October the same year, the court decided to invalidate their exclusive contract, and stated that 'Before a judgment has reached in this case, SM cannot hinder the trio's solo activities.'


Credits: TVXQBaidu + 囧囧有神家族
Trans by: LoveInTheIce@DBSKnights
Shared by DBSKnights

[TRANS] 100628 JYJ files lawsuit against SM

News released by the Seoul Central District Court on the 28th states that the TVXQ trio have filed lawsuit against SM demanding earnings from album sales.

(parts omitted)

Whilst SM maintains that a 13 year exclusive contract is necessary to compensate for time lost during overseas activities, the trio argue that other artists with overseas activities have much shorter contracts e.g. SS501 have a 5 year contract, Big Bang have a 6 year contract and the Wonder Girls have a 7 year contract. This provides full proof that having overseas activities does not in any way necessitate a longer contract, as SM claims.

They also contend that SM must first pay each member (of the trio) 10 billion won. To date, TVXQ's revenue has totaled to 60 billion won; excluding any other supplemental fees, SM should pay each of the five members 10 billion won.

Last October, the court made the decision that SM must no longer interfere with any of the trio's individual activities.

Source: TVXQBaidu + ohmicky
Trans by: dorfehh@DBSKnights
Shared by: DBSKnights

[TRANS] 100628 TVXQ Trio File Lawsuit For Exclusive Contract

Three members of 'TVXQ' have filed a lawsuit against SM Entertainment following their exclusive contract injunction.

According to the Seoul District Courts, Xiah Junsu (Kim Junsu), Micky Yoochun (Park Yoochun) and YoungWoong Jaejoong (Kim Jaejoong) filed an exclusive contract validity suspension lawsuit on the 25th.

Sejong, the law firm in charge of the trio's legal actions, stated, "The exclusive contract period is thirteen years from the date they debuted, however, if military service is taken into consideration, the length of the contract is in fact fifteen years," and "This violates Clause 103 of the civil code." Clause 103 of the civil code states that any legal acts that violate good customs or public order will become invalid. Sejong also stated, "If the contract is canceled, the members must pay an extravagant compensation fee that is three times the amount of total investments and twice the amount of what the group would have earned in the remaining period of the contract."

The trio submitted an exclusive contract suspension injunction last July which was partially granted in October. SM Entertainment also filed an objection to the partial acceptance verdict and a lawsuit to confirm the continued validity of the exclusive contract in April.

SM, I hate you with a burning passion of a thousand fiery suns...

Source: [hankyungnews]
Translation credits: jeeelim5@tohosomnia.net
Shared by: tohosomnia.net

[ALLKPOP] 100304 SM Entertainment Officially Investigated for Unfair Contract Terms

Korea’s Fair Trade Commission (KFTC) has announced that they are currently investigating all celebrities bound to SM Entertainment regarding unfair contract terms, suggesting that “a second TVXQ scandal” like event may occur.

According to One Nation’s Jo Moon Hwan, it was revealed that KFTC is investigating cases of unfair contract terms in SME idols such as TVXQ (including Junsu, Yoochun and Jaejoong who are currently in legal disputes with their management company), SNSD, Super Junior, etc. for a total of 53 SME celebrities.

Jo Moon Hwan stated that the question and answer document received from KFTC specified investigations for all SME affiliated individuals for reasons related to a delay in taking care of TVXQ’s legal case. KFTC expressed, “Through this event all celebrities in SME will undergo investigations to see if their contract terms go against the law of established fair contract terms, which is why TVXQ’s legal dispute is being delayed.”

Additionally, the commission said regarding TVXQ’s case, “All related documents will be carefully reviewed and considered for an appropriate outcome,” not revealing at what point the case would be over.

As you readers know, SM Entertainment has recently experienced many difficult trials as three members in TVXQ and Super Junior’s Hankyung underwent legal battles for problematic contract terms such as its 13 year length and unfair distribution of album sale profits.

Signing unfair contract terms with its employees is not only SME’s problem. Last December, KFTC requested 407 large agencies to address unfair contract conditions and undergo investigations. However, one month after this request was issued (until January) only 11 agencies reported their conditions and decided to take prompt corrective action measures, giving a huge shock to KFTC.

From April to May, YG Entertainment and Star Entertainment were also investigated along with 20 other companies. The results? 19 companies with 230 celebrities were found with contracts made up of various unfair conditions. These conditions were not about appearance limits but rather about the celebrity’s individual affairs such as telling agencies their current location and not being able to leave.

This investigation will concentrate on protecting weak celebrities who are powerless to request their affiliated large agencies for protection rights that they deserve.

Stay tuned to allkpop for more activities of KFTC regarding their investigations on SM Entertainment and other companies!

Source: Allkpop.com
Written by: SWEETREVENGE
Shared by: kurumi@shinkifive