[News] 090821 TVXQ vs SM Debate at Court

Posted on: March 29, 2011

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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.” ( the FTC had given SME a warning in 2002 http://news.naver.com/main/read.nhn? mode = LSD & mid = sec & sid1 = 106 & oid = 016 & aid = 0000131503)

◇ 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.” (note: If SME indeed had released such data every six months then why hasn’t ANY been produced?)

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.” (note: what image and exploitation do they speak of when SME gave JYJ permission to invest along with their families?)

◇ 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


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