While all seems calm for now, following the official statement from SM Entertainment, many are awaiting with anxiety with regards to what else will happen in the morning. Many are wondering if SM Entertainment are just papering over the cracks. As of now, all TVXQ notices and schedules on the SM Entertainment homepage have been deleted, including the SM Town Concert schedule.
Perhaps not strange to many but odd considering that they are SM Entertainment's #1 group now, TVXQ has had a 13 year "slave contract" with SM Entertainment. TVXQ members have only received a 0.5% increase in salary over the past 5 years despite their amazing success and huge fanbase. All 5 members are actually preparing to sue SM Entertainment because of this, not just Junsu, Yoochun, and Jaejoong.
Junsu's dad had been the representative of the 5 members and was at the head of the preparations to sue SM Entertainment. But SM entertainment found out about the pending lawsuit and proceeded to "bully around" Junsu. Yunho and Changmin aren't sueing SM at the moment, but neither are they resigning with SM at the end of their contract. Contrary to rumors, there has been no conflict within TVXQ members, and the whole issue is been between the members and SM Entertainment.
SM has been taking from 70%-90% of the profits that TVXQ makes, leaving only 10%-30% for the members themselves. Most people think that Jaejoong, Yoochun, and Junsu will win their case because it is against Korean law to make "slave contracts." And slave contracts they are, receiving less than half is a stretch, but 10%?!?!
Ever since Jaejoong, Yoochun, and Junsu started the cosmetics endorsements, SM Entertainment began to try and put down their efforts, wondering why the members were trying to go into business without first consulting with them. Junsu was being pushed around by a lot of upper officials in SM Entertainment because of his dad's involvement and his private endorsements.
Yunho and Changmin aren't betraying TVXQ for not being involved in the law suit. They all have wanted to leave SM Entertainment, but couldn't because of their contracts. Even if they had wanted to leave, the amount of money fighting lawsuits would be enormous. All 5 members are standing together against SM. It is very distinct that this is not a TVXQ vs. TVXQ fight, but rather a TVXQ against SM fight.
It should be noted that Jaejoong, Yoochun, and Junsu do not want to completely terminate their contract, but they do want major revisions to be done to their contract so that the corrupted control that SM Entertainment has over them can be dissolved.
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Yoochun Jaejoong and Junsu for a lawsuit against SM(full)
One of Asia’s biggest group Dong Bang Shin Ki, has 3 of its members in a possible lawsuit against their own company SM Entertainment.
Dong Bang Shin Ki members Xiah JunSu, Micky YooChun and Hero JaeJoong had gone to Seoul Central District Court to hand in an application for provisional disposition to terminate all effects of their exclusive belonging rights contract with SM on 31st July.
It has been known that their reasons for doing so is that the contract with SM Entertainment has many irrelevant conditions attached. It is also known that the content to the contract the 3 members cannot agree to includes having them belonging exclusively to SM Entertainment for 13 years and also unhappiness over profit allocation.
The lawyer responsible for this case said, “We are currently preparing for a lawsuit against SM for this contract. (About the reasons to why) We cannot reveal the details now.”
There has also been saying that the 3 members have differing views to SM on their upcoming ‘Dong Bang Shin Ki cosmetic enterprise expansion’.
Currently out of the 3 members, JunSu is already doing a cosmetic business with his parents. It is said that there were plans for the company to operate a cosmetic business, with sheep placenta as the main ingredient, using the group’s name as the brand name in Seoul GangNam and GyeongGiDo IlSan. It is said that there were also plans for the business to be launched in China bringing in hundreds millions KRW in profit.
But it has been said that the 2 sides are having some differing views and also complications arose through their discussion on how the product and brand will go.
Follow up #1:
What will happen to the 3 members’ activities scheduled for Dong Bang Shin Ki? there is the upcoming SMTown Live 09 on 16th August. It seems that the members may not be appearing for the concert with their lawsuit with the company.
Especially with all the rumours lately about ‘disbanding of Dong Bang Shin Ki’. To add on, one of the 3 members’ parents have also established their won entertainment company in China.
Fans are also very taken back by this incident. Many have voiced their disbeliefs on various discussion forums.
Follow up #2:
One of the Korean new media No Cut News has known through phone call from SM that SM said, “We are aware that some of the (DBSK) members have some disagreements with the company, but we do not know that they have sparked a lawsuit wth the company. The director board of the company is currently having an urgent meeting in an undisclosed place in Seoul to discuss about their countermeasures.”
They also added, “We will have our official stand asap”.
Remember last month about the “supposed false rumor” that TVXQ / DBSK / Tohoshinki was breaking up? Well, it seems that information may have actually been true. According to this source, it states that on July 31st 3 TVXQ Members, specifically Micky Yoochun, Jaejoong, and Xiah Junsu filed an injunction against SM Entertainment in the Seoul Central District Court to remove the “non exclusivity clause” in their contract. Yunho and Changmin have decided not to file an injunction. Basically the three of them supposedly had meetings with a Chinese cosmetic company and launched a new cosmetic line called CreBeau. They invested some of their own money and also in turn received some lucrative gifts from the Chinese company as an incentive package for signing up and investing. Some of the rumored gifts includes Micky’s Audi R8 and the townhouse for Xiah’s parents.
SM Entertainment supposedly got wind of this news and because SM Entertainment has the “exclusivity clause” in their contract, SM Entertainment tried to prevent this from happening. Unhappy with this, and already unhappy that they feel they’re being underpaid profit-wise from album sales, you can understand why they’re trying to terminate the “exclusivity clause” in their contracts. There’s also rumors that if a favorable agreement isn’t met, the three will be leaving the group for good. SM Entertainment via phone to one of the Korean news media outlets stated that they are aware of the situation, the board of directors is having an emergency meeting and are discussing what to do. They’ll have an official statement soon.
Wow, this is crazy. I wonder how this will effect their arrangements with AVEX in Japan? This isn’t new for SM Entertainment as they had their problems with H.O.T. in the past. I just hope that this doesn’t result in an actual disbandment and that everyone can come to peace. TVXQ is a very talented group and they shouldn’t break up, they have a great thing going.
[T/N] The news is true about them requesting to removing from the company. Just no breaking up
Jaejoong, Junsu and Yoochun did request a disposition (note: not a lawsuit yet) asking SM to release them from their contracts. Yunho and Changmin aren’t involved. This isn’t just a rumour, it’s FACT. What remains a rumour is DBSK breaking up, athough if the three win (which they are very likely to – read below) then it is a possibility. ‘DBSK’ and ‘DBSK Disposition’ are hot issues on Korean portal sites right now and articles keep being uploaded, and it looks like SM is removing old posts by the members on their official website.
Jaejoong, Junsu and Yoochun’s side of the story (straight from the mouth of the lawyer representing them):
* The three members and the lawyer have been in contact discussing this issue for over 2 months now.
* They tried to negotiate a deal with SM Entertainment to resolve this issue in the best way possible but they could not reach an agreement.
* Therefore, they were forced to request a provisional disposition on the 31st against SM Entertainment to have them released from their contracts.
* The main reasons for them wanting to be released from their contracts include the fact that their contracts were basically like slave contracts.
* Their contracts were for 13 years.
* Their earnings are split 8:2 or 9:1 (with the smaller numbers being the five members and the larger numbers being SM Entertainment. For comparison, JYP Entertainment splits 5:5 with their groups even the new ones.).
* *Other reasons being mentioned, though not by the lawyer, include the members being overworked and SM Entertainment not being happy with the make up business the three started with their parents.
* If SM Entertainment does not release them from their contracts, they are prepared to file a lawsuit and go to trial.
* An official statement regarding this issue will be released by the three members soon.
SM’s side of the story (straight from the mouth of their representatives):
* They admit that there has been some disagreement between them and DBSK recently but they are ’shocked’ that DBSK took the issue to court.
* They are currently having an emergency meeting and will release an official statement soon.
While DBSK probably makes the most money in SM Entertainment, don’t think for a second that SM Entertainment is smart enough to keep them. Look at H.O.T. (LSM denied they were breaking up when articles began to appear about them breaking up just like they are now about DBSK; a few days later H.O.T. announced they were breaking up) and Shinhwa (SM only wanted to negotiate new contracts with two of the members; they are amazing for being able to leave SM Entertainment TOGETHER and buy the name Shinhwa from SM Entertainment).
On the other hand, note that the three asked to be released from their current contracts. This doesn’t necessarily mean that DBSK are breaking up or that the members are leaving SM Entertainment (they could sign new contracts).
The only thing you can be sure of is the fact that the three members are not happy with their current contracts and would like to be released from them.
These conflict factors were written by Newsen, and please don’t take them as unbeatable true facts. The one who wrote is a person and a person always has his/her very own individual opinion. Eventhough he/she has facts to base his/her opinions, yet NO REPORTER right now who really knows what is actually happening between TVXQ themselves.
Meanwhile, the recent unofficial news spread around is that:
Yunho and Changmin aren’t betraying TVXQ for not being involved in the law suit. They all have wanted to leave SM Entertainment, but couldn’t because of their contracts. Even if they had wanted to leave, the amount of money fighting lawsuits would be enormous. All 5 members are standing together against SM. It is very distinct that this is not a TVXQ vs. TVXQ fight, but rather a TVXQ against SM fight.
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The 3 members of popular group TVXQ, Jaejoong, Junsu, and Yoochun applied a provisional disposition against SM Entertainment in Seoul Central District Court to remove the “exclusivity clause” in their contract, the factors behind this actions has received attention from public.
Why does the agency fall into this conflict with TVXQ? The factors can be summarized into three kinds of great.
1. TVXQ has different contracts in Korea with SM Entertainment and in Japan with AVEX. While TVXQ is constantly being active in Japan, it does no good with their contract in Korea. If they continue to be active in Japan like this, the Korea activities will be pretty much harmed. There’s a possibility of revenue aspects which is influenced this decision. Whether to focus in Japan or Korea, this creates a conflict within the agency.
2. Difference opinions among the members. There’s a serious disagreements among the members of TVXQ, The group who decided to leave the agency, Hero Jaejoong, Micky Yoochun, and Xiah Junsu, is having conflict with the rest members, U-Know Yunho and Choikang Changmin, who wanted to remain to stay.
3. TVXQ is less active recently domestically. There has been accumulated complaints about TVXQ who is more focusing on Japan than Korea. The fact that they’re concerning more about the number of copies sold in Japan than in Korea is also reported as the pressure.
Also the recent renewal exclusive contract for 7 years which makes them to feel oppression from the agency. TVXQ members are known to be in agony about renewing the seven-year contract time.
source: Newsen + CBS
ALWAYS HAVE FAITH
by : CASSIOPEIA 데니제제
1. What is DBSK’s break up, and why did this break up news pop out?
and Are the news about DBSK true?
+ The words about DBSK breaking up came up as the news of the 3 members Jaejoong, YuChun, and Junsu filing a “Provisional disposition of suspending exclusive/ongoing contract” to the court came out. The breaking up rumors are just false rumors. The reason why the breakup rumors came out is because of the news of the members filing a suspension of the contract created more rumors amongst the fans. The most known false rumors flowing around from this were : The members not getting along, and the problems with SM Ent. and the member’s cosmetic line. A these rumors came out the break up rumors came out as well. The only real truth that are out about DBSK is the news about the members filing a suspension of contract. That’s the only one.
2. What is the deal with DBSK’s rumors about setting up a cosmetic company and the problems? What kind of relation does this have?
+ To tell the truth there is no relation with the cosmetic line and DBSK’s break up rumors. Of course the members that had filed the contract suspension were the ones that are opening the store, but the members are not the owners of the cosmetic company. They are just managing ONE store. The only thing the 3 members are responsible for is just ONE branch of the entire company. There were rumors about the members and the company in the past, and it seems to have been building up into false rumors. but the cosmetic line having relations to the reason of why the members have filed the contract suspensions are not true. These rumors are just what the people are assuming because they have no clue what is going on with what is true and what is not true. because of this reason, as long as there has not been a clear statement of confirmation, it is not true.
(LOL the last line has been my favorite line ever since we started this blog XD So many rumors in this world ^^;;)
3. What is a “Provisional disposition of suspending exclusive contract” ? and What happens when this lawsuit is in action?
+ Simply, when you file a lawsuit of suspending a contract, you are basically putting a stop to the validity of the existing contract. An ongoing contract is basically saying that you will stay with the same company for a long time, but DBSK wants to fix the existing contract’s fishy areas and wants to express how the members wants to fix the contract and show what they want. That is it. This filing of lawsuit has nothing to do with DBSK members breaking up. And this lawsuit has nothing to do with who will be WINNING or LOSING. If this file gets passed and accepted then it just means that the existing contract will just lose the validity not that DBSK will leave SM Ent. and have DBSK break up.
4. On the re-contracting, there are talks that Yunho and Changmin have done a re-contract with SM Ent. is this true?
+ I don’t know where you heard this from, but this has never been confirmed formally and is just a false rumor. There has not even been a real news report of this rumor, and it’s JUST the 3 members filing a provisional disposition about the contract. Just because the 3 members have put out a provision doesn’t mean that just because only 3 members did that the other 2 made recontracts. These are just rumors. There were no talks or whatsoever about this. This is untrue.
5. How do we deal with all the false allegations, rumors, and articles that are still spreading?
+ To tell the truth, not all of us have the high tolerance and knowledge to be able to just pass and ignore all the news articles spreading over the internet and the on the search engines. And also the fact that not many of us have unlimited knowledge of how lawsuits work, of course many of us will panic over the news articles talking about the rumors as if they were facts, and about DBSK breaking up. In these kind of cases we just have to stay strong when seeing overly exaggerated articles and false articles. Because we Cassies are together with DBSK we have to show them. We can’t leave rude comments, and to not spread false rumors from reading false articles ourselves. We have to spread the right informations to the people and learn to gain the right informations as well. We have to request posts about taking down false informations and post and scrap the articles that have been formally confirmed by SM.ent and from right sources.
(agreed. Even for articles that are posted in SYC, please note that it’s still written by a news reporter–a somehow an outsider in SM and in DBSK. We only translate them. I guess please stress your focus to statements in news that are out from the official person of both SM and DBSK)
6. Even though they are rumors, rumors have been proved true alot of the times. Are there anything out there that are actual facts?
+ As long as the rumors have not been formally confirmed there is no possible way that we can call it actual facts. But we are for sure that the only thing 3 members have done is that they filed a lawsuit to FIX the contract (edit it basically) regarding slave contract, the validity date of the contract, and unfair contract listings. And to do this they have right now put a hard stance by putting a suspension to the validity of the existing contract. A lot of people are saying that DBSK will just become the 2nd H.O.T. and S.E.S. but situation is very different. DBSK is not just top idols in Korea but also artists who are very influential outside of Korea. SM. Ent is not a company that would kick out DBSK just because their artist put a lawsuit. Even if DBSK was to break up from SM.ent, this does not mean that DBSK will break up. Many might be asking ‘ What does that mean?’ DBSK is also in contract with a ent. group AVEX in japan. The contract validity with AVEX ent. has not ended and also have contracted with 2 companies for 2 CFs. DBSK also will be participating in Japan’s A-Nation starting today and also on the 1st of August, 22,23,29,and 30.
If DBSK was to even break away from SM Ent, they will have to deal with damages for breach of contract with Avex. Thing will get dirty. There has been the same situation in Japan with a group called SMAP. Back then SMAP’s member Kimura Takuya had filed a lawsuit against his own company called Johnny’s ent. The company backed away and reedited the contract and after that all the rest of the idol groups from there follows the new contract. Back then everyone there said that Kimura was going to take off to a new company and be solo, and every year his group gets hit with false rumors of breaking up but they are still together to this day. Anyway again, we believe that it will be best if all you guys would stop making careless judgment about DBSK’s breakup rumors.
SO BASICALLY THE TO POINT IS THAT: DBSK’s members Jaejoong, Xiah Junsu, and Micky Yoochun have filed a lawsuit ” Provisional disposition of suspending exclusive/ongoing contract” based on the contract’s basic terms of conditions, 13 year of slave contract term conditions of money. The false and over exaggerated news reports are overflowing, and the rumors of the company having issues with the members company line and the members not getting along are false. Just because they filed a lawsuit does not mean they are breaking up. They are just filing a lawsuit to FIX the existing contract with SM Ent. They have filed a lawsuit because SM Ent. would not negotiate in talks with the members and they have tried many times. Because negotiations did not get through the members as artist have filed a lawsuit against their company. The only way. So it is best to not believe the false rumors and read false articles
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