As previously reported, JYJ filed a lawsuit against SME in July of 2009, and the lawsuit ended in 2012 with both sides reaching an agreement. The documents from the case were recently revealed, and based on the documents, some are saying the slave contract assertions are false.
C-JeS Entertainment has now responded with their own statement on the matter on the agency's official website. The label stated, "False postings about the preliminary injunction order for the invalidation of the exclusive contract obtained by JYJ against SM Entertainment Inc. ('SM') in 2009 and the conciliation reached in 2012 between JYJ and SM have recently swept the Internet. As such postings have caused confusions among fans at home and abroad not fully aware of the factual background, C-JeS Entertainment Corp. ('C-JeS') will explain JYJ's position below to avoid any further confusions."
The label then recounted court proceedings between JYJ and SM, affirming, "The court ordered that 'SM shall not, contrary to JYJ's will, negotiate or enter into a contract with a third party for JYJ's appearance in any TV program or movie, their participation in any performance or concert, their production of music records or their participation in any entertainment event or activity, or request third parties, including broadcasting companies, music production companies and concert agencies, to terminate their relationship with JYJ to interfere with JYJ's engagement in any entertainment activity.'"
When SME filed an objection, the courts found SM AND JYJ had an "exclusive contract on a subordinate relationship," and that a long-term contract such as that could not be justified. C-JeS concluded it will be taking legal action on JYJ's behalf against those who disseminate these groundless rumors.
Take a look at C-JeS' rebuttals to the rumors below:
? Some people alleged on the internet that the exclusive contract between SM and JYJ was not unfair on the grounds that the settlement amount SM paid to JYJ was smaller than the amount originally claimed by JYJ, and that SM paid such amount to JYJ only to settle the amount that should have been paid to JYJ in 2009 but was not paid due to the lawsuit. However, JYJ agreed to reduce the settlement amount in order to settle the dispute as soon as possible, fearing protracted litigation will only waste the time and money and may make it impossible for JYJ to take part in the entertainment business of their own will for the litigation period.
? Other people alleged on the internet that JYJ executed the 13-year long-term exclusive contract at the request of TVXQ members' parents. The court, however, found that the members' negotiating powers were at their lowest at the time they signed their exclusive contract, which was right before the release of their debut album on January 14, 2004, and it is unfair and against good moral and public order for SM to have JYJ sign a long-term exclusive contract taking advantage of the situation where there is no alternative choice.
? People also alleged on the internet that the Korea Fair Trade Commission's order to take corrective measures is only applicable to those contracts between SM and its trainees. In fact, the Korea Fair Trade Commission has repeatedly issued orders to take corrective measures with respect to the exclusive contracts between the entertainment agencies and their entertainers. The controversy on the fairness of such contracts became widespread after the problems and issues related to the contracts between agencies and their trainees were raised.
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