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Yesterday, the Seoul Central District Court (Civil Cases Department 50, Chief Prosecuting Officer: Seong Joon Choi) dismissed both SM Entertainment (SME)’s objection against JYJ (Kim Jaejoong, Kim Junsu, Park Yuchun)’s provisional injunction, and SME’s injunction to terminate their management contract with C-JeS Entertainment. Though the declaratory suit is left here after judging from the decision made by the court that had dismissed SME’s objections, SME isn’t considered to have a better position in the lawsuit (coldly speaking, the judgment of the original lawsuit can be considered to have been made by over 51%)
First, Let’s look into why the court dismissed the objections.
– The exclusive contract of this case is a dominant-subordinate contract that an entertainer doesn’t have the rights in the decision-making process, and only had to follow the unilateral directions of the management company.
– Because JYJ members were in unilaterally inferior position than SME in negotiation, they had to follow SME’s measures.
The pretext, such as a decrease of investment risk or stable international expansion, cannot justify the extremely long subordinate exclusive contract like this case’s contract.
– Because not only the long-term contract but also the clauses such as SM’s command and supervision to JYJ’s every action and excessive penalty of breach of the contract intensify the subordination of this case’s contract, they are unilaterally unfavorable to JYJ members, and so they are invalid.
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