Fourth trial of JYJ vs SME… SM Treasurer appears as a witness

Another hearing for the lawsuit of JYJ against SME was held yesterday and here’s the only news released so far regarding the said hearing:

110315 4th Trial Of SM Vs JYJ.. SM Treasurer Appears As A Witness

The fourth trial of the lawsuit between JYJ and SM Entertainment took place on the 15th.

Last April, SM filed an exclusive contract validity verification and compensation for losses lawsuit against the trio to which the trio filed an exclusive contract invalidity verification and unjust profit restitution counter-lawsuit against SM. On the 15th, the two sides held a hearing.

The trial that was held this day included an examination of a witness, Mr Yoon, who was in charge of handling TVXQ’s income and accounts in SM Entertainment.

At the trial, Mr Yoon stated, “SM artistes settle their accounts twice a year for the income from overseas and domestic activities and album sales. Before the accounts are settled and the artistes are paid, the celebrity, his or her manager, the treasurer and his or her parents get together, make sure that the income division is done exactly according to the contract and sign a paper stating that the correct income division was carried out. This information is also looked over by an accounting firm.”

He continued to state that TVXQ’s income division was done through a legal and just process as he said, “The trio have never voiced a complaint about the income division till now. The income division has always been done according to the contract with consent from the trio, and we have never omitted any profits or expenses.”

Also, Mr. Yoon explained the process behind TVXQ’s income division as well as the members’ expenses, income and salary received in advance. He also gave thorough answers to the questions given by the lawyers of SM and the trio regarding album sales and royalties.

The trio did not attend the trial. The next trial will be held on April 19th at the same location and the Courts are planning to hold an examination on another witness, Nam So Young, the CEO of SM Japan who was in charge of TVXQ’s Japanese activities.

T/N: Read this with a pinch of salt please! This is the only article out there and as you can see, it’s quite SM biased. From what I’ve read from accounts of the trial, these so-called thorough answers from Mr. Yoon included the following:

-TVXQ only earned 1 billion of the 14.7 billion Won of SM’s overseas royalty.
-Mirotic was written down as 480K copies in the SM accounts “for convenience sake” meaning that TVXQ could not receive their 50 million Won bonus for selling 500K+

I don’t know about you guys, but er, these don’t seem so ‘thorough’ as the article makes them out to be.
It’s your call in the end but er… yeah. =/

Source: [spn edaily+Yuaerubi]
Translation credits: jeeelim5@tohosomnia.net
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Actually, this article does not say what was the courts reaction to the statements of Mr. Yoon. According to those who attended the hearing yesterday, Mr. Yoon and SM’s statements and “evidences” did not receive favorable reaction from the court. Here are snippets of what happened yesterday during the hearing:

What Happened in the Hearing Today

The Admins are working on a more detailed post, but here is a preview of what is to come. ^^

On the issue of the Net Profit of 14.7 billion KRW (approximately 14.7 million USD) in 2008:

SM: Of that, the portion from TVXQ was only 1 billion KRW. The rest came from BoA, CSJH (Chun Sang Jee Hee), and The Trax.

JYJ’s law firm: Wow, so CSJH must make more money in Japan than TVXQ!

SM: …;;;;;;

————————–

On Expenses

From The Nameless Song Part 1:

…Finally one day we had claimed #1, what we’ve desperately longed for.

That day had come.

From then on, everything started to go well.

Profits reached hundreds of thousands, swept every award and we really felt our success.

Finally we heard that we had hit it big, had raised profits beyond our imaginations

With spring in our steps we went to the company on our pay-day.

Each teammate looked at each other with excited eyes.

We praised each other, that we had worked hard.

On the accounting statement we received, our performance was in the Minuses.

When I checked again, thinking that I had mis-seen– Everything was expenses.

Damn. All of the so much that there was, had slipped out as expenses.

Just what kind of expenses were they, to make so much that there was fly away, to where?

Today’s Hearing revealed that the “Expenses” that members had to pay for included everything,

from snack costs and the SM Executive and Staff’s Gas Money and Parking Fees.

————————-

On Whether SM Ever Calculated How Much the Members were Due

SM: Your Honor, we do have evidence that we calculated the money owed to the Members, with the Members.

*Shows a document on TVXQ’s debut single “Hug” from 2004″

Court: … *waits for more documents*

SM: …*stays silent*

Court: …AND??? (Where are the documents that show SM did the calculations for albums after TVXQ’s first single in 2004? TVXQ released albums under SM until 2009.)

SM:…;;;;;; (In the end, SM failed to produce any more evidence beyond the single document from 2004.)

————————–

On the 50,000 USD Due to the Members After Mirotic Sold Half a Million Copies

(Under the revised contract, the members were supposed to be paid 50 million KRW (50,000 USD) if they sold over 500,000 copies of an album. Mirotic sold about 540,000 copies.)

Court: So why didn’t you pay the Members the money?

SM: Your Honor, Mirotic only sold 480,000 copies. We were supposed to pay only if it sold over 500,000 copies.

JYJ’s law firm: But Mirotic sold 540,000 copies. *shows evidence*

SM: …;;;;;; Well, it’s actually that we were supposed to pay only on the condition that there be a next album… and

Court: Stop. Not Accepted. (SM rejects SM’s excuse. 50,000 USD for an artist who sold 500,000 copies is ridiculously small, especially when divided into five, but SM didn’t even pay the Members that.)

Source: DC TVXQ Gallery, esc님
Credit: JYJ3@wordpress