JYJ’s side has retaliated against SM’s exclusive contract suspension and album sales prohibition injunction that was filed to the Seoul District Courts on the 8th against JYJ’s worldwide album ‘The Beginning’.
SM accused the members of JYJ, Kim Jaejoong, Park Yoochun and Kim Junsu, of signing onto an exclusive contract with CJeS Entertainment even though their exclusive contract with SM as not ended yet.
Following this, the Korean Federation of Pop Culture and Arts Industry released an official notice to all broadcasting companies, label companies and online music distribution companies asking them to refrain from aiding JYJ in any way for the same reasons.
JYJ had a partial victory from their exclusive contract suspension injunction against SM Entertainment, but as their contract with the entertainment agency has not been ended yet, they would be in an illegal dual contract if they have signed an exclusive contract with CJeS Entertainment.
However, JYJ representatives stated, “JYJ have not signed an exclusive contract with CJeS contrary to what SM and the KFPCAI are insisting,” and “CJeS is merely in charge of management that provides a route for domestic activities.”
JYJ’s spokesperson Prain stated in a phone conversation with reporters on the 15th that, “SM and the KFPCAI are insisting that there is a dual contract involved, which is causing a problem. However, this is not true. It is not that JYJ and CJeS have formally signed a contract, which would mean that JYJ would be working under CJeS, it’s that CJeS is merely working as JYJ’s agency.”
Prain continued to add that, “JYJ have not signed on to work under a new entertainment agency, they’re just leaving management-related work to CJeS to handle. It’s just like how we are in charge of handling all of their publicity-related work and how Warner Music Korea is in charge of all of their album-related work.”
Prain revealed that, “A misunderstanding may have occurred because the concept of an ‘agency’ is still unfamiliar to most people in Korea. When the overseas showcase events are done, we will officially respond to SM and the KFPCAI’s claims with sufficient evidence and documents.”
Regarding the scope of JYJ’s independent activities, which SM is claiming as the issue, Prain stated, “This is something that has already gone through sufficient legal review,” and “By law, there is nothing that would cause a problem for JYJ.”
Prain implied that SM’s stance lacks legal and logical validity when it was stated that, “We have confirmed that by law, SM Entertainment has no real reason to file an album sales prohibition injunction against JYJ’s activities.”
Source: [Today Korea+DNBN]
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Definition of Agency: Fiduciary relationship (Special relationship of trust and confidence in which law demands a higher than ordinary degree of care and responsibility from the dominant or trusted party) between two parties in which one (the ‘agent’) is under the control of (is obligated to) the other (the ‘principal’) . The agent is authorized by the principal to perform certain acts, for and on behalf of the principal. The principal is bound by the acts of the agent, performed in carrying out entrusted duties and within the scope of agent’s authority. An agency can be created by (1) express agreement, whether oral or written, (2) implication, based on the custom or practice of the trade, or (3) conduct of the principal. Creation of agency is essential to commercial and financial transactions, because an organization (as a legal entity) can function only through its agents.
credits: Business Dictionary
T/N: In Korean, the distinction is made as 에이전시 (agency, CJeS) and 소속사 (affiliated company, SM).
The concept of an ‘agency’ is still quite rare in the Korean entertainment industry as most celebrities work under an entertainment agency/company such as SM, YG, JYP etc, that is in charge of everything, instead of hiring an agency to work for them for a particular field.
JYJ have different agencies working for them for different areas.
CJeS = management, Prain = publicity, Warner Music Korea = album sales