Japanese press “TVXQ’s three members’ penalty for breach of contract amounts up to 130 billion KRW (about 120 million USD)“
Japanese press published an article estimating that TVXQ’s penalty for a breach of contract would have been more than 130 billion KRW (about 120 million USD).
On Feb. 5th, ZAKZAK, online news website affiliated with Japan Sankei Entertainment News, published an article analyzing the TVXQ situation based on clauses of the contract and the ruling statements from petition for preliminary injunction to void exclusive contract that Jaejoong, Yuchun and Junsu have filed against SME in 2009.
In this article, an unnamed source, expert in both Korean and Japanese entertainment management business revealed that “each member from TVXQ received 0.4~1% of profit during their Japanese activities and received no guarantee when the music sales volume was less than 50,000 albums,” and added that “when there was a breach of contract, they were required to pay a penalty that sums up to three times the investment up to that point and twice the estimated profit for the rest of contract period which was six years. That basically is more than 10 billion YEN (approx. 130 billion KRW, 120 million USD)”
Zakzak also revealed that the clauses of contract stating that “rights regarding all media appearances and entertainment activities within the country and overseas belongs to the production company,”and “all copyrights, including the right to reproduce, to copy, to record, to distribute, to broadcast, to perform, to use in karaoke, and to make secondary products, regarding their own written, arranged music and lyrics are transferred to the production company” were just simply “shocking.”
Zakzak added at the end of the article that “Korea Wave has a style of patiently raising new artists up by making huge investments and signing long-term contracts” and that “this may be hard to understand for Japanese, but that skill is what has conquered the Asian entertainment world right now.”
Original article: http://news.nate.com/view/20110206n03971?mid=e0102
For those that think JYJ has no standing to leave SM, read it and think about it. Was their contract really ever fair? What else would people call it a “slave contract?” It really angers me when people argue that it’s JYJ’s fault for signing such an unfair contract in the first place… that they signed it in their hunger for stardom and therefore should be blamed for making a such “bad decision.” Did you ever think about what the boys were going through when they were actually signing it? Not only was JYJ really young when they first signed with SM, that contract was their lifeline. Simply put, they had no other choice. They were from average middle class families and had no real connections with the entertainment industry. All they had were their dreams… their lifelong dreams of becoming a singer and performer. SM most likely knew this very well and obviously used it to their advantage. Thus, SM offered a contract that was extremely biased towards the company… knowing that they held the key to making JYJ’s dreams come true… knowing that JYJ had no other choice but to accept their offer. What do you think would have happened if JYJ refused the contract? Do you think SM would have offered a fairer contract? Hell, no. Knowing SM, they would have simply kicked the boys out and made sure their hopes and dreams were crushed along the way. It is NEVER ever okay to take unfair advantage of those that are weak. It is NEVER okay to use a young child’s dreams for success to force him into a contract that you know is COMPLETELY UNFAIR, but a contract you know he won’t be able to refuse. There is a reason why society has laws to protect the weak. There is a reason why society made laws to protect those that are bound by contracts that aren’t just. JYJ signed the contract not just because they were hungry for fame or money. They signed because they had no other choice if they wanted to do what they loved. The contract, as unfair as it was, was their lifeline. If you were drowning and a known crook threw a rope at you, yelling that you would become his slave the moment you touch the rope… would you not grab onto the rope? Would there really be anyone who would turn away from that rope, your lifeline, and drown instead? Don’t blame the boys for trying to save themselves from a situation that they, in reality, really had no control over.