Former members of the popular boy group TVXQ’s Kim Jaejoong, Park Yoochun, and Kim Junsu were back in court again to debate the legitimacy of their contract with SM Entertainment.
On November 16th, the representatives of TVXQ along with SM’srepresentatives held their first day in court at Seoul District Courts. With both sides defending to the best of their ability, SM mentioned TVXQ signed 13 year contract which guaranteed them into foreign markets. It was argued back that the length of the contract was established without TVXQ’s consent.
On SM’s legal side, they stated “The length of the contract was agreed upon as both sides, as well as shared mutual financial purposes and motives.” The further expanded on how TVXQ was created by SM to appeal to foreign markets, hence why the length of the contract was permitted. This “lengthy” contract is what secured them when they entered into foreign markets.
He continued on saying, “The exclusive contract would be a problem if there was a lack of substructure (editor note: in popularity, for example) or if the income was unfairly distributed during TVXQ’s activities. Nonetheless, TVXQhas always received the best treatment possible, which was far superior to other artists in the industry.”
There were no protests made in the group when they debuted, only when theboys started investing in their cosmetic brand in 2008, the problems of the exclusive contract with the agency surfaced and became a problem. The group ignored their activities and used the lawsuit as an excuse which caused the company a lot of grief.
In TVXQ’s reprisal, they fought back by mentioning The Fair Trade Commission’s 7 years of a maximum contract. This was important that it was stated in this case because the “exclusive contract” can be looked upon as invalid from the signing. The representative went on to state, “…there have always been unfair riders within the contract especially unfair income distribution, excessive compensation penalties and an extensive contract period.”
The representative of TVXQ full out rejected how SM saw things and refused to give out compensation based off the invalidity of the “exclusive contract”.They both still must decided if the contract is still valid to this day, or not.
So what do you think? Who is right?