Posts Tagged ‘SM Entertainment’

I read the news in Soompi about Kris of EXO filing a lawsuit against SM Entertainment to terminate his existing contract with the company. Though the details of this request for contract termination were not discussed in detail, it was mentioned that his circumstances are similar to that of former Super Junior member Hangeng/Hankyung who also filed a lawsuit against SM Entertainment years ago for contract termination.

Though I’m not a hardcore EXO fan, I must admit that I was a bit shocked by this news. I was shocked not because of the fact that Kris was asking for his contract to be terminated but because of how soon this happened. I was somehow expecting this to happen some of the members of EXO especially considering how ‘focused’ SM Entertainment is to this group, similar to how ‘focused’ the company was with DBSK and Super Junior before. Add to that, we’re talking about SM Entertainment here who is a company known for its sneaky and unfair contracts and treatment of its artists. The long list of artists who left the company due to the same reason is enough to prove this. With Kris’ case, I was just not expecting it to come this soon because EXO has been in the business for only around 2 years. Well, I guess Kris has had enough of whatever it is that SM  Entertainment is giving him/them so he decided to end it as soon as possible. I mean if he’s not happy with it anymore, then why stay, right?

Just a word of advice to EXO fans from a Cassie who has been in the same situation years ago: let Kris be and respect whatever his decision is. You will never know what he feels and what he’s going through because you’re not in his shoes. Yes, this kind of situation is surely painful for the fans but you must also remember how much more painful this is for Kris and the other EXO members. Try to understand him and just support him no matter what. Taking sides in this kind of situation is inevitable but if ever you choose not to support Kris’ decision, then it’s ok to leave him alone as long as you don’t put him down. I know sometimes it takes a lot of time and courage to accept these kinds of things and move on from it. For those who have been following this blog, they know that I, for one, is guilty of taking sides when  DBSK was put in the same situation. I chose to support  JYJ and though I tried to keep supporting Yunho and Chamgmin too, I failed in doing so. I felt a sense of disappointment towards Yunho and Changmin so I just decided to let them be – I avoided watching their performances or listening to their music to try and ease the pain and bitterness that I’m feeling towards them. This proved to be effective because in time, the pain, disappointment and bitterness I felt was gone. I’m actually ok now, I can finally enjoy watching the two of them again, maybe not the same joy as I felt before when they were DBSK5 but at least I’ve already accepted their situation now and I’ve completely moved on. Yes, I still consider myself a Cassie (I always will) but I think I’m a more “mature” Cassie now, something that I hope DBSK5 members will be proud of.

EXO fans are probably still in the stage of denial right now and I know how hard this is for you but stay strong and support each other. Take care of all the EXO members because what they need most now is your love, understanding and support. Look back at how Cassies and ELFs responded when put in this kind of situation before and learn from our mistakes. EXO is a young  group and your fandom is just at it’s beginnings. This is just a challenge and a test of character for you so do everything you can to pass this with flying colors for this will be the foundation of your fandom in the years to come.

As what we Cassies always tell each other before: Always keep the faith!

I was about to go to bed but then an interesting and irritating article posted at Allkpop caught my attention. I just felt the urgency to forget sleeping for the meantime and post this article immediately because I am utterly pissed with the bullsh*t reasoning of all these Korean broadcast stations with regards to their refusal to allow JYJ to appear on their shows.

The latest proof of the stupidity of these broadcast stations is this official statement that KBS released regarding the issue of JYJ’s non-appearance on their shows:

KBS releases official statement regarding JYJ’s broadcast appearances

KBS has released an official statement regarding their decision to bar JYJ from appearing on their broadcasts.

The statement was posted on KBS’s online production crew message board as a response to the many requests asking for the reasons why JYJ was not allowed to make an appearance.

KBS explained,

JYJ’s lawsuit has yet to come to an end and KBS is taking note of this lawsuit from an objective standpoint… From a business perspective, allowing a celebrity who is in the midst of a legal dispute onto a broadcast can have an influence on the current situation. Therefore, it is common to refrain their appearances while waiting for the results of their legal dispute.

Though it appears that JYJ has submitted a request to nullify their exclusivity contract with their existing agency, they made their own judgment to temporarily participate in activities on a case-by-case basis. However, JYJ has signed with another agency and are currently continuing their album promotions under two contracts.

Because of these issues, KBS has decided that currently, JYJ’s broadcast appearances may bring about legal problems and is threat to the culture industry. Until JYJ comes to a settlement or agreement with their agency, we will refrain from their broadcasts as a whole. Casting and guest appearances will be made depending on the outcome.

The post has since been removed while JYJ’s agency has countered with their own statement.

Source: TV Daily via Nate
Credit: Allkpop

And here is statement that JYJ’s agency release to counter the allegations of KBS:

JYJ’s agency deems KBS’s statement as illogical

Following the release of KBS’s statement addressing JYJ’s exclusion on their programs, JYJ’s agency were quick to fire back at the broadcast station, deeming their excuse as “illogical“.On May 18th, CJES Entertainment rebutted, “The lawsuit about JYJ’s subordinate contract with SM Entertainment that KBS was referring to was already acknowledged by the court as lopsided and disadvantageous to JYJ, and the contract was subsequently nullified.”

In addition, last February, the invalidity of their contract with SME was emphasized once more as the court declared another order for SME to stop indirectly impeding on JYJ’s activities. With these being said, we believe KBS’s stance does not match up with the facts.”

They continued, “When SM Entertainment lodged a lawsuit regarding the ‘dual contract’, the court rejected their argument and ordered SM to not interfere with JYJ’s activities with CJES Entertainment. Considering JYJ’s lonely fight against such a huge agency in request for a more reasonable contract, we believe it is wrong that KBS is deviating from the objective truth and making the public think that JYJ are just creating more societal problems. We strongly request for them to make corrections on their part.”

“Especially with JYJ currently participating in overseas promotional projects with various countries, as well as being appointed highly ranked ambassadors, we’re very disappointed that they are speaking of JYJ as threats to the culture industry,” concluded CJES Entertainment.

Source: Daily News Star Today via Nate News
Credit: Allkpop

Seriously, are these broadcasting stations even THINKING  before releasing such statements? In their DESPERATE attempt to justify their OBVIOUS unfair and unscrupulous treatment of JYJ, they are coming up with stupid and absurd reasons which are all purely against the REAL FACTS of the current situation. Don’t they realize that because of these foolish statements that they release, which contradicts the real facts, it only makes them even more GUILTY of not having an ACCEPTABLE and LEGITIMATE reason of banning JYJ from appearing on their shows? This only goes to shows that what they are currently doing to JYJ is a violation of the rights of JYJ as an artist to promote and have TV appearances as well as a violation of the rights of the fans to see their favorite group appear on TV shows.

It’s saddening to know that the companies who are supposed to help the artists be recognized by the public and showcase their talents  and also to provide the fans with the best entertainment by bringing them closer to their idols are the ones who are depriving them of such things. These broadcasting stations who are supposed to be the support system of the artists are the ones who are making them suffer. They are cowards who choose to be biased and succumb to their fear of disobeying a company who also doesn’t know the meaning of FAIR treatment.

I just hope KBS, SBS and MBC would try to look at the possible future implications of what they are doing to JYJ and their fans. Not only are they angering the fans more but I’m pretty sure that they are also losing the trust of  the JYJ members. With the rate of JYJ’s skyrocketing success not only in Asia but in other parts of the world (even without TV appearances and heavy promotions), it will only be a matter of time when the trio will truly conquer the world stage. When that time comes, I am sure that these broadcasting stations will do anything to get JYJ to appear on their shows. If I were JYJ, I will think twice before trusting and welcoming these stations again because of what they are currently doing to the group.

On a final note, I just want to say that although appearing on shows will definitely help JYJ, I think they are doing just fine even if they don’t have the support of KBS, SBS and MBC. As we all know, they are doing very well right now and that is thanks to their hardwork, the love and support of the fans as well as the support of the people (friends, family and staff) who truly cares for them.

I just want these three broadcasting stations and also SM Entertainment and Avex to know that they can never bring down JYJ because they are not alone fighting this battle. We, the fans, are always here to support and protect them. Keep in mind that although it may be true that artists/celebrities/idols are created by these talent agencies, it is and will always be the fans who will determine their success and staying power in the industry.

After the hearing last March 15, a news of another lawsuit by a third party against C-Jes and Warner Korea was released, which is somehow connected to JYJ. I seriously smell something fishy here. Why the heck would this news come out a time when JYJ is seemingly getting the upper-hand in the ongoing lawsuit against SM Entertainment?

Investor in JYJ Concert Sues Rights-Holders for Fraud

The Plaintiff Park XX sued Kim XX and C-JeS’s Director Paek XX, Warner Korea’s Director Whang XX, and others for fraud in Seoul Central District Court.

Park revealed in his complaint that “The Defendants conspired to deceive me and defrauded me of my wealth and so I sue.”

According to Park, the Concert Rights to the “JYJ Show-case Tour 2010″ of last year was transferred from C-JeS to Warner Music Korea. After that, it was transferred multiple times and (in the end) reached Kim XX.

Park said that “(he) was interested in the concert industry and from the introduction of a friend first met Kim XX. Kim said upon our meeting that he has the Concert Rights and that if [Park] invested, [Park] could make a very large profit, and recommended enthusiastically that [Park] invests.”

According to Park, he followed Kim’s advice and started to deposit money from October 7th of last year, and drafted an official contract on October 14th. The 5 locations of the concerts were Hong Kong and the USA’s Seattle, New York, San Francisco, and LA. The invested funds were to be used entirely for the concerts, and the budget for the cost of the concerts were to be notified (to Park) in advance. At this, Park invested 1,244,850,000 KRW (approximately $1,244,850).

Park said that “(he) requested proof of the details of the use of funds around October 20th of last year. But Kim kept pushing it back with excuses of being busy.”
Park also argued that “contrary to what Kim said about his company’s state, Kim’s company had a lot of debt. It’s also been confirmed that he had intention to use the profits from the concerts to repay his debt.”

Park said: “Kim used a company that was already a dissolved company for tax purposes to contract, and he also concealed the fact that he has a debt load of billions KRW when we entered into the contract. Even the profits from the concert of 350,000,000 KRW(approximately 350,000 USD) were collected by the creditors and [Park] suffered harm doubly and triply.”

Park explained the reason for his suit in his complaint: “JYJ held a for-profit concert in Hong Kong on October 24th of last year. But the concerts in the 4 locations in the US, due to the fault of the C-Jes, were non-profit, not for-profit. The defendants did not provide a clear explanation [to Park] even though the schedules and the locations of the concerts were changed. Also no one informed [Park] of the above with official documents. [Park] did not recover one cent from the investment.”


To summarize, C-JeS transferred the concert right to Warner Korea, who transferred it to others, who eventually transferred to someone named Kim XX.

Kim XX, according to Park, told Park that the concert rights were a good investment and that Park should invest in them.

Park alleges that Kim defrauded him.

Please notice that C-JeS and Warner Korea are not involved in any way in this. By the time that Kim met Park, the concert rights did not even belong to C-JeS or Warner Korea. It belonged to Kim. This was a deal that was strictly between Park and Kim. It is unfortunate that Park decided to drag C-JeS and Warner Korea into this by naming the companies as co-defendant and extremely convenient for SM that the stories are being circulated moments after the JYJ-SM hearing is concluded.

Source: Star News
Credit: JYJ3

Another article about the hearing yesterday:

The Reason Why JYJ Had No Choice but to Sue

Posted by Seo Yoonah-pierrot, @followyas and @babyblue
Original source: Naver Mongeul Mongeul blog

The March 15 SM v. JYJ Hearing

1. The alleged reason why the [Dong Bang Shin Ki’s] members’ earnings were so little was that everything was attributed as overhead expenses. It was revealed today that what SM counted as overhead expenses included such comically ridiculous items as snacks, daily expenses of SM executives and staff, parking fees, cold medicine, meals, entertainers’ transportation (ie, plane, car), rent, concert agents’ costs, various taxes and expenses that should have obviously been covered and borne by SM.

2. SM claimed that in 2008, of the 14.7 billion won (roughly 14.7 million USD) in royalties earned that year only 1 billion won (roughly 1 million USD) came from Dong Bang Shin Ki, and the rest came from CSJH, BoA, the Trax and Koh Ara [T/N: A Korean actress under SM]. Those who know of Dong Bang Shin Ki’s popularity and selling power in Japan and abroad know how baseless this claim is. (The judge asked if Koh Ara really brought in more revenue than Dong Bang Shin Ki, at which SM’s side could not respond). At this point, many in the courtroom even burst out laughing.

3. In 2008, SM transferred the required 10% of digital download sales [to Dong Bang Shin Ki] but in 2009 didn’t even bother to do so.

4. The total earnings from the world tour amounted to 3.4 billion won (roughly 3.4 million USD), but of the amount that was supposed to go to the Dong Bang Shin Ki members, [SM] subtracted 900 million won (roughly 900,000 USD) as agents’ fees.

5. The money that was handed out as advances was later deducted as personal taxes. If only [SM] had done their accounting properly there would have been no need to pay such taxes on these advances.

6. The [Dong Bang Shin Ki] members were made to pay for the agents’ fees for their concerts abroad, music videos and even choreography expenses.

7. Even given the sales of Mirotic accounted at 480,000 units, [SM] was supposed to pay [the members] 50 million won (roughly 50,000 USD) but didn’t for the reason that the next album hadn’t come out yet.

8. In 2004, [the Dong Bang Shin Ki members] were accounted the 3-4 months’ worth of profits for the single “Hug”, but the accounting records reveal that after that they received nothing on the sale of their albums.

Ultimately, the [Dong Bang Shin Ki] members were burdened with all the costs.

So what exactly is SM insisting it invested? [T/N: the author is implying that SM’s justification that the financial arrangements in DBSK’s contract were necessary to recover investment costs is in fact one big, elaborate lie/fraud. All the major investments were made by the DBSK members; the DBSK members were in fact forced to invest in the company that supposedly invested in them]

What kind of calculation method is this?

The more they are active, the more they lose money…how is there anyone that thinks this makes any sense?

If this is how much SM screws around in court, one wonders how much more severe is their screwing around in real life.

All the information revealed at the hearing is the result of SM having tailored and bent the facts in their favour, and yet it still renders one appalled. One wonders how much more shocking the uncensored version is.

And now, the judgment that was originally due out today has been extended once more to a fourth hearing thanks to SM’s latest claims/antics.

But everyone, be aware of the truth.

Sources: @followyas@babyblue1225
Translation by: Jimmie of TheJYJFiles
Shared by: TheJYJFiles
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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]
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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

I’ve been out of the country for 5 days and I wasn’t able to access the internet (basically the reason for my long absence from the blogging world) and this news has been one of the best news that greeted me when I got back last Friday night. I just hope this court ruling will help JYJ to be able to appear on Korean broadcasts again.

110224 Courts State, “SM Must Pay 20 Million Won For Each Interference in JYJ’s Activities”

The Seoul District Courts have decided to lay down a mandatory compensation injunction to SM Entertainment for the interference of JYJ’s activities.

According to the official documents released by JYJ’s agency, the Courts laid down an indirect mandatory injunction that states, “SM Entertainment must not interfere with JYJ’s activities in the entertainment industry, doing so will result in a 20 million Won compensation fee per offense.

The Courts verdict explained their reason as they stated, “We have laid down this indirect mandatory injunction against SM Entertainment as it has been recognized that there is a possibility that they will interfere with JYJ’s activities in the entertainment industry in the future as they held a press conference on November 2nd, 2009 demanding that JYJ follow the exclusive contract and as they sent a certification of contents to Warner Music Korea on October 2nd, 2010 demanding that they halt the production and distribution of JYJ’s Worldwide album, regardless of the fact that the Courts laid down the verdict to accept the injunction to suspend the validity of their exclusive contract on October 27th, 2009.”

The Courts have already sided with JYJ before on the 17th, laying down the verdict, “The Courts dismiss both the formal objection and exclusive contract suspension injunction filed by SM against Kim Jaejoong, Park Yoochun and Kim Junsu, as the exclusive contract between SM and JYJ is invalid,” and “SM must not interfere in JYJ’s independent activities in the entertainment industry.”

C-JeS Entertainment’s CEO Baek Chang Joo stated, “There are still many mountains we must cross. JYJ are caught up in a frustrating situation in which they must overcome countless obstacles other than those stated by the Courts in order to approach the public. We hope that the public and fans take interest in this situation and help us create a more reasonable and developmental entertainment system.

Source: [hankyung+Yuaerubi]
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110220 A Drag On JYJ’s Activities, It Is Now Time For The KFPCAI To Respond

The Seoul District Courts dismissed both the formal objection and the exclusive contract suspension injunction filed by SM Entertainment against the group JYJ, comprised of Kim Jaeoong, Park Yoochun and Kim Junsu.

The decision is garnering great interest as the Courts did not accept SM Entertainment’s plea to suspend the validity of the exclusive contract between C-JeS Entertainment and JYJ.

This is drawing the attention, not only to SM Entertainment, but also to the Korean Federation of Pop Culture and Art Industry (KFPCAI). The KFPCAI aroused great controversey last year when it released an official statement to all main broadcasting companies, cable channels, album distribution companies and media companies urging them to refrain from allowing JYJ to appear on their shows; this happened soon after JYJ began promotional activities for their album ‘The Beginning’.

When releasing the document, the KFPCAI pinpointed JYJ’s ‘dual contract’ as an issue. The KFPCAI believed that as JYJ’s contract with SM Entertainment was not yet terminated though their exclusive contract suspension injunction was accepted, it was unjust for the members to sign an exclusive contract with C-JeS Entertainment.

However, the Courts’ verdict on the 17th has caused the KFPCAI’s statement to lose all persuasive power and justification. This is because the Courts have officially recognized that C-JeS Entertainment and JYJ’s contract poses no threat or problem to the exclusive contract between JYJ and SM Entertainment. The Courts have deflated that ‘dual contract’ suspicion, which the KPFCAI couldn’t get enough of, in one blow.

But the KFPCAI has yet to release an official statement on the Courts’ verdict. Fans of K-pop are curious to see if the KFPCAI will continue to deny the verdict with a mindset of ‘The exclusive contract issue is still being fought in court’, or if they will continue to repeat their statement that, ‘JYJ will destroy the order of the entertainment industry’ or if they will show an innovative change in attitude.

A representative of a civic group pointed out that, “The KFPCAI should and probably do know that the logic they have been basing their argument on has severely weakened due to the Courts’ verdict. The KFPCAI should not react emotionally to this situation, but should instead make the effort to change the unjust infrastructure of the entertainment industry.”

It is now time for the KFPCAI to respond.

Source: [today korea+Yuaerubi]
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