Note: This was appended today to the top of C-JeS’ statements from yesterday
[Re-read yesterday’s texts HERE]
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.
On July 31, 2009, JYJ filed a request for a preliminary injunction to invalidate the exclusive contract with SM, and on October 27, 2009, the 50th Civil Division of the Seoul Central District Court (Presiding Judge: Byung-Dae Park) rendered a decision granting such request. 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.” The court’s reasoning behind such order was that ① the exclusive contract between SM and JYJ allows SM to exercise unreasonable control over JYJ through its superior position, and imposes payment of excessive compensations or unjust burdens seriously infringing JYJ’s economic freedom and fundamental rights and, therefore, can be considered to be void or being invalidated as a legal action against good moral and social order, and ② given SM’s influence on the Korean entertainment market, a protracted litigation will likely substantially restrict JYJ’s entertainment activities, which may raise not only economic concerns but also cause serious infringement of JYJ’s fundamental rights under the Constitution, including their freedom of occupation and the freedom of activity.
SM filed an objection against the preliminary injunction order, however, the 50th Civil Department of the Seoul Central District Court (Presiding Judge: Sung-Joon Choi) dismissed SM’s objection and upheld the original preliminary injunction order on February 15, 2001, stating that ① the exclusive contract between SM and JYJ constitutes an “exclusive contract on a subordinate relationship” under which the entertainer does not have an independent decision-making right but must follow the agency’s unilateral instructions, and such defect in the exclusive contract caused by the difference in the bargaining power of the parties was not cured until the execution of the fifth supplementary contract, and ② the 13-year contract term, which we find to be excessively long, must be limited to a reasonable period to protect JYJ’s personal rights and their freedom of occupation and minimize side effects resulting from JYJ’s engagement in activities against their will, and such long term “exclusive contract on a subordinate relationship” cannot be justified by arguing that such contract was necessary for SM to reduce its investment risks or help JYJ enter overseas markets smoothly.
The preliminary injunction order had been possible thanks to JYJ’s courageous decision and prompted the Korea Fair Trade Commission to establish a standard form of exclusive contract to rectify unfair contractual relationships prevalent in the entertainment industry. Several entertainment agencies voluntarily took the initiative to improve their systems so that more entertainers have negotiating powers commensurate with those of entertainment agencies.
Some people, however, have recently been disseminating groundless rumors described below based on certain record on conciliation negotiation between JYJ and SM:
① 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.
② 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.
③ 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.
C-JeS decided to take stern legal actions against the illegal activities distorting the court’s decision in the preliminary injunction order and the conciliation between JYJ and SM based on false rumors and damaging JYJ’s reputation. For the reasons described above, C-JeS has filed a complaint against those who spread false rumors described in this statement for the violation of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc. (defamation). C-JeS hopes this statement will help all JYJ fans confirm the truth and will prevent any further misunderstanding.
※ Attachment: Seoul Central District Court’s Order dated October 27, 2009, Preliminary Injunction for the Invalidation of the Exclusive Contract, Case No. 2009Kahap2869 https://goo.gl/We0zk0
Note: During 2014 JYJ Japan dome tour Ichigo Ichie concerts in Osaka, C Jes announced that due to some disagreement with the organisers they have decided to not sell the goods at the venue and instead the Osaka goods were sold online through JYJ JAPAN fan club and in Fukuoka the goods were sold at a different venue and not at the concert venue.
As the goods sale at the concert venue was obstructed, Tokyo ward’s event organising company which sponsored the 2014’s Japan tour with the sentence of the lawsuit of request for restitution by Seoul’s celebrity production (T/N: i.e. C JeS entertainment) to which Korea’s popular group ‘JYJ’ belongs to, on the 16th Tokyo district court ordered for the payment of around ¥140,000,000 (T/N: roughly $1.4 million).
JYJ is formed by 3 members who separated from male idol group ‘Tohoshinki’. Presiding judge Katsuhiko Okazaki, “It is an infringement of the celebrity production’s right as recognised from the stand point of the contract, it is a highly malignant conduct of extreme betrayal,” and severely criticised the sponsor.
The Judgment concluded, “the celebrity agency holds the right to the sale of goods and the organising company had the duty to cooperate with the celebrity agency,” and judged, “the organising company intentional obstructed the (goods) sale, it was a vicious act.”
According to the judicial decision, in 2014 held a total of 6 days of performances in the order of Tokyo, Osaka and Fukuoka, and around total of 430,000 people attended.
Tokyo performance’s first day, the party entrusted by the celebrity production held the concert related goods sale. The sponsor side as well sold the item including a capsule that was arranged by themselves, but the celebrity production claimed that it was not agreed by them and the sales were suspended. On one hand, in Osaka and Fukuoka the sponsor did not approve the goods sale at the venue, the celebrity production side unavoidably held the sales at a different location.
According to the judgement, the celebrity agency (T/N: i.e. C JeS ent.) entrusted the venue arrangements for the 2014 dome tour in Tokyo, Osaka and Fukuoka to the organising company. The celebrity agency held the rights to the sales of goods and when they tried to conduct the (goods) sales through a different supplier at the Osaka and Fukuoka concerts, as the organising company did not agree they were not able to do the sales.
A cyberbully was sentenced to pay a fine for slanderous attack toward JYJ Kim Jaejoong.
On the 21st, Yang Seokyong, Judge of Seoul Central District Court revealed that Ms. A, student of a prestigious university in Seoul, was sentenced to a fine of 1.5 million KRW for violating the Act on Promotion of Information and Communication Network Utilization and Information Protection.
The justice department made the following judgment, “Ms. A has arbitrarily interpreted the rumors on Internet and spread them and maliciously distorted the victim’s private life. As the victim is a celebrity who receives the attention of the public and the defamation targeted his extremely private life, the degree of damage is high.”
Ms. A was brought to trial by a fan club of Kim Jaejoong, on the charge of defamatory postings about his family relationships and sexual orientation on Internet bulletin board from August to September 2012.
During the trial, Ms. A claimed that she has just pretended to be anti on purpose, in order to provoke the public’s sympathy toward Kim Jaejoong.
On the other hand, JYJ’s company C-JeS Entertainment has recently requested a police investigation of a netizen who spread malicious rumors about Kim Jaejoong.
C-JeS Entertainment has officially announced that the legal dispute between JYJ and its former Japanese management, Avex, has come to an end.
On February 16, entertainment agency C-Jes uploaded a press release on its official homepage regarding its artist group JYJ. It announced, “C-JeS (JYJ) and Avex have agreed to end all legal disputes that have occurred between the two parties until now. Henceforth, C-JeS (JYJ) and Avex will longer meddle in each other’s activities.
Previously, the Tokyo District Court ruled in favor of JYJ and ordered Avex to compensate the group for interfering with its activities in Japan. Avex immediately appealed the decision, and a related source revealed, “Through the mediation of the Tokyo District Court, both sides decided to settle.
The CEO of C-JeS Entertainment, Baek Chang Joo, expressed his pleasure at having the dispute end and the road to JYJ’s activities in Japan open. Baek Chang Joo stated, “It is most meaningful that as we have agreed with Avex that it will no longer meddle in JYJ’s activities, the group’s activities in Japan has been legally guaranteed. We are happy that JYJ’s long legal dispute has ended and are hopeful that JYJ will be able to meet their Japanese fans more closely and more often.”
This is the official statement in regards to the info posted earlier HERE
“C-JeS (JYJ) and AVEX have reached an agreement in ending all legal disputes that has happened up to now between the two.
C-JeS (JYJ) and AVEX will no longer interfere with each others’ future activities.”
Avex and C-JeS agreed to end all legal dispute between them. No interference in the future is to be carried out.
– JYJ Japan website
[via @rubypurple_fan of JYJ3]
JYJ’s company, CJeS, will be taking firm legal action against a certain individual who has been impersonating members of Kim Jaejoong’s family and posting up comments that have subjected him to degradation and insult.
CJeS revealed on their official Facebook the actual account and username of the imposter and announced that they have collected all the data about the account. They will be reporting this incident under Cyber Slander Law.
They also warned the imposter to cease the posting or sharing of all offensive comments, and that they have no intent on agreeing on any special terms made by the imposter.
1. The trial’s settlement papers suddenly got viewable today. There are up to 10 settlement terms. Sections 3,4,6 are restricted for viewing (i.e. public can’t view what is written).
2. The cross-validation of JYJ’s exclusive contract, made between Company C and Company A on H22.02.26 (Feb 26, 2010 in Roman calendar)has been completed. (Note: It was not written in the document when it has been terminated. This is important, I think)
3. On the rights of works by artists’ activities in Japan that took place before the settlement approval,in accordance with the provisions of Section 7 and 8 of the exclusive contract – any legal action/dispute by Company C and A will not take place anymore. (The contents of these paragraphs in the exclusive contract can’t be verified because it is restricted)
4. Company A & C shall not disclose to any third party, regardless of circumstances leading up to the settlement, any settlement terms, litigation articles (both written and oral), and any evidence. (Hence, the viewing restriction)
5. Company A to consent on the contents of the announcement/press release of Company C that will be posted on their homepage. (No announcement has been made yet)
6. Costs of litigation will be shouldered by both companies. The contents of the record of settlement is over.
7. The settlement document will be archived. If instructions will not be followed, the company can petition for enforcement.
Ruby’s note: Basically, the settlement document is completed. However, there are sections that are not available for public viewing. Both companies can not disclose the full settlement terms because this will be a violation of the agreement. C-JeS will release a statement via their website.
Japan Court documents are available for public viewing so fans can come to court and verify.