[Medias] The legal dispute between SM and JYJ which has been dragged for 3 years is due to finish in September. In fact, the details that the both parties have argued are mutual agreement in arbitration (mediation). The word ‘mutual agreement’ seems to be significant at this moment because the court already ruled in JYJ’s favour regarding the dispute about their exclusive contract.
In 2009, JYJ applied for injunction to terminate the validity of exclusive contract against SM and SM filed a lawsuit to verify the validity of exclusive contract and compensation for damages the next year[Translators Note: SM’s lawsuit finished its all hearings in May 2012 so it is due to be ruled together in September.] However, JYJ also filed a lawsuit to verify invalidity of exclusive contract so their legal disputes have been continued for 3 years.
It looks like the lawsuit is remaining unresolved at first glance, but the court already rejected not only SM’s objection against JYJ but also SM’s injunction to terminate exclusive contract (between JYJ and C-JeS Entertainment). In addition to these, the court also ruled that SM cannot interfere JYJ’s independent entertainment activities. Of course, it is an open secret that SM interfered JYJ’s media appearances despite of the court’s decision.
JYJ’s injunction insisting ‘we would like to be freed from the unfair contract’s fetters’ was partly accepted as a result. The court recognised that the exclusive contract which SM made with JYJ was an unfair contract. Which means, the most significant dispute whether it is an unfair contract or not has already been decided by the court: it is the unfair contract.
The court made clear that their exclusive contract was unfair, but separated its judgement regarding profit sharing parts for the process of the lawsuit in merit and tried to induce the both parties to reach mutual agreement. This means that the both parties now only have disputes regarding profit sharing. Now the remaining issue in the relationship between JYJ and SM is that an agreement in the profit which JYJ did not receive from the period of their activities in Japan.
[Translator’s Note: JYJ’s legal representative revealed that SM is not showing proper documents related to the activities in Japan.]