FTC: SM Ordered to Revise Unfair Contracts with Artists

articlesSM Entertainment received a firm order from the Fair Trade Commission to revise the unfair contracts which bind SNSD, Super Junior, SHINee, and many others to them.

On December 23rd, the Fair Trade Commission stated, “We gave them a warning to voluntarily correct the unfair exclusive contracts that their celebrities and trainees have signed. [SME] is to reduce all contract lengths by three years.”

This decision by the FTC was based off of a complaint made by TVXQ’s fanclub, Cassiopeia. The group alleged that SM Entertainment was using their status to pressure a disadvantaged (’slave’) contract onto TVXQ.

SM Entertainment’s violation, as disclosed by the FTC, lies in the unfair contract conditions. These conditions included forcing artists to sign on for a long period of time, an excessive penalty provision for breach of contract, and a one-sided scheduling of activities. There’s also a clause that allows SME to extend contracts for overseas activities without first consulting the artist in question.

JYJ: We’re going to support the two members’ comeback

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101220 [Star OX] JYJ, “TVXQ, A Reunion Is Possible”

Due to their legal dispute with their former agency SM Entertainment, Junsu, Jaejoong and Yoochun are currently active as JYJ, not TVXQ. Each are trying new things such as dramas and musicals and showing off their hidden potentials, but recommenced activities as singers when they released their album ‘The Beginning’ on October 14th. The album has been successful with pre-orders for ‘The Beginning’ hitting over 520,000 copies and ranking 5th on the This Year’s Songs chart chosen by US Billboard readers.

Though they’ve been going non-stop, they are now stuck in a situation where the members of TVXQ are being pitted against each other with U-Know Yunho and Choikang Changmin announcing their comeback as a two-member TVXQ in January of 2011. Though it is a sensitive topic, we could not help but ask about TVXQ. Though the three people expressed their unwillingness as they said, “Though it isn’t something we can’t talk about…” they answered our OX questions in a candid manner.

Reports: Hangeng (Super Junior) Wins Lawsuit Against SM

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News out of the latest batch of translated reports state that former member of Super Junior, Hangeng, WON his lawsuit against SM to void his contract with the company. 

According to translated reports from “Star Today” and MyDaily, Seoul District Count ruled in favor of Hangeng saying that the contracts made with him were invalid.

Regardless of what happens from now on, it’s a devastating blow to SM because there now is independent validation that their contract with Hangeng is invalid. And thus, it may speak volumes about the way SM contracts with their teenage stars. 

What this decision does is to illustrate to non-fans — and to people who aren’t paying that much attention to the details of such things — that these artists aren’t simply imagining the serious problems with contractual agreements between SM and at least some of their artists.

JYJ Opens Up About Life after Breaking away from SM

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JYJ sat down to answer some very difficult questions about their current frame of mind given that they’re still in the midst of the lawsuit against SM Entertainment.

Although these three young men are cutting their own path to their own freedom, its still difficult for them because they obviously miss the two members who decided not to sue SM for unfair treatment.  They have even dreamed of the other two members at the same time.

The guys talked about not being able to hold domestic activities. Fans have speculated that JYJ are purposely being kept from performing because broadcasters are scared of getting on SM’s bad side.  Despite the broadcasters’ cowardice, reports say that there is still a flood of requests from Korean fans who want to see JYJ be allowed to perform on various programs. (@dongbanger)

Here is the translated interview: