Court rules in favor of JYJ in a dispute with SM Entertainment

JYJ, a pop trio consisting of members from one of Asia’s favorite groups, “Dong Bang Shin Ki,” has won its legal battle to work independently from its management company.

When three members of the quintet, namely Kim Jaejoong, Park Yoochun, and Kim Junsu (more commonly known as Hero, Micky and Xia), formed JYJ, SM Entertainment claimed the action was a breach of contract. 

However, Seoul Central District Court dismissed Thursday the injunction request filed by SM Entertainment, thereby allowing JYJ to negate its contract with the company. The court had already ordered on Oct. 27, 2009 that SM Entertainment should not interfere with JYJ and its management agency CJes Entertainment’s activities.

According to the court, the exclusive contract cannot be considered legal for the following reasons: 1) The contract violates the right to privacy, establishing a “dominant-subordinate exclusive” condition, forcing members to obey the agency. 2) JYJ has weaker negotiation capability, having no choice but to follow SM’s decision. 3) The long period of the “dominant-subordinate exclusive” contract cannot be justified as a reduction of investment risk or to penetrate abroad. 4) The articles such as excessive penalty also result in a stronger “dominant-subordinate” relationship.

Other provisions that pushed members into a disadvantageous position were also invalidated, the court official said.

The court also said SM Entertainment’s injunction was a violation of the earlier court ruling not to interfere with JYJ.

A representative of CJes Entertainment, Back Chang-ju, said, “I express my gratitude to JYJ and staff members for their help in fighting a battle with Goliath.

“I believe that this is the victory of justice, and I hope that there will be no more interference with our activity for ridiculous reasons like double contract.”

(Herald Online)