Seoul Central District Court dismisses both of SME’s injunctions against JYJ
On February 17th, the Seoul Central District Court dismissed both lawsuits filed by SM Entertainment against JYJ.
To recap, SM Entertainment filed an objection on October 27th, 2009, claiming that the Seoul Central District Court’s order to prevent them from interfering with JYJ’s individual activities was illegal.
The court rejected SM’s injunction objection application by stating, “The exclusive contract between SM and JYJ forces the celebrity to become subordinate to the agency without any discretion. JYJ has no option but to follow SM’s actions due to the subordinate rank they are forced under in the power of SM. A long-term subordinate contract cannot be justified by the risks the agency took in investments, as well as international advancements.”
They continued, “Aside from the long-term contract terms, SM’s ability to supervise and direct every move made by JYJ, as well as the clause claiming that JYJ must repay for losses only emphasizes the subordinate positions of JYJ in the contract, so the injunction is invalid.”
Regarding the second injunction filed by SM Entertainment, asking the court to suspend JYJ’s contract with CJES Entertainment, the court replied by saying that the injunction is invalid since SM Entertainment was ordered on October 27th, 2009 that they were to not interfere with JYJ’s individual activities, and their injunction was in breach of that order.
Baek Chang Ju, CEO of CJES Entertainment, commented, “We consider it a victory of truth and hope that their activities are no longer hindered by forced accusations of double contracts. We will be working hard to show only the best side of JYJ to the public. I would like to thank the JYJ members and the staff for consistently battling a tiring fight against Goliath.”
In conclusion, the exclusive contract between SM and JYJ is invalid, and JYJ’s individual activities are legal.
Representatives of SM Entertainment stated in the aftermath of the ruling, “The legal battle between SM and JYJ is not yet over. This court decision is merely on the injunctions, this does not mean that the exclusive contract between SM and JYJ is invalid. The original lawsuit is still ongoing, and the date of pleading will be sometime mid-March. Through the original lawsuit, the truth will be investigated, and we will be working to make sure that their contracts are still valid.”
Article translated and taken from Allkpop
[NEWS] Courts Dismiss All SM Injunctions & “Legally Guarantee JYJ’s Independent Activities”
The Seoul District Courts has dismissed all formal objections against JYJ’s injunction as well as the exclusive contract suspension injunction filed by SM Entertainment against JYJ’s Kim Jaejoong, Kim Junsu and Park Yoochun.
On the 17th, the Courts made it known that they have dismissed all claims filed by SM Entertainment, which is the agency’s formal objection against JYJ’s injunction as well as its exclusive contract suspension injunction.
This means that the Courts have emphasized their decision that the contract signed between the members of JYJ and SM is invalid and that the members’ independent activities are guaranteed. They have also publicized that SM Entertainment cannot interfere with JYJ’s activities in the entertainment activities on the claim that their contract with the agency is still valid.
The Courts laid down the verdict that SM Entertainment’s formal objection is invalid on the premise that
▲the exclusive contract in question can be categorized as a submissive contract as it does not give the celebrity the freedom of choice and instead forces him to follow the orders of the entertainment agency,
▲the members of JYJ could do nothing but follow SM’s orders as they were placed in an inadequate position compared to SM in terms of bargaining power,
▲the exclusive contract’s extreme long-term subordinate nature cannot be justified by pretexts including the decrease of investment risks and ensuring a stable entrance into foreign markets,
▲other than the long-term nature of this exclusive contract, clauses including that which gives SM Entertainment direct superintendency over JYJ’s every move as well as that which calls for excessive compensation for a breach of contract strengthen the submissive nature of this contract and place the members of JYJ in an unilaterally disadvantageous position.
Regarding the injunction filed by SM to suspend the exclusive contract signed between the members of JYJ and C-JeS Entertainment, the Courts dismissed the injunction on the grounds that,
▲as long as the verdict made on October, 2009, which includes the decision that SM must not interfere with JYJ’s independent activities in the entertainment industry, is valid, SM’s request to suspend the validity of the business commission contract signed between the members of JYJ and C-JeS Entertainment is not allowed as it goes completely against the previously stated verdict,
▲and stressed that SM cannot exert the direct superintendency, given to them by their exclusive contract, over JYJ’s activities in the entertainment industry as of now.