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exoluxionlove · 11 months

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[INFO] EXO Chen, Baekhyun, and Xiumin file lawsuit to terminate exclusive contract with SM.

Rough translation via Papago:

"◆ The full text of the group EXO's members Baekhyun, Xiumin, and Chen (Byun Baekhyun, Kim Minseok, and Kim Jongdae)'s notice of termination of the exclusive contract against SM Entertainment.

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This is Lee Jae-hak, a lawyer for Lin, a law firm that acted as legal representatives for Baekhyun, Xiumin, and Chen (Byun Baek-hyun, Kim Min-seok, Kim Jong-dae, hereinafter referred to as "artists"). In the following, the legal representative would like to share the artist's position on the exclusive contract between the artists and SM Entertainment Co., Ltd. (hereinafter referred to as "SM"). Artists have previously sent content certificates to SM seven times from March 21 to recently through our legal representative, and through this, we have repeatedly requested transparent settlement data and copies of settlement grounds.

It is the artist's minimum right to request an accurate and transparent basis for settlement of accounts that have been unclear, and SM is also an obligation to comply with the exclusive contract and the Pop Culture and Arts Industry Development Act. However, SM maintained its unfair position that it could not provide a copy of the data.

At the same time, SM has repeatedly committed extremely unfair tyranny, claiming a long contract period of at least 17 or 18 years by signing a long-term contract with artists for more than 12 to 13 years and then having them sign a follow-up exclusive contract again.

Artists feel that SM is forcing artists to sign so-called slave contracts based on their superior status for more than 20 years, including a considerable amount of training.

I would like to convey the various injustices that artists have not been able to tell you through the position below.

<1> Artists' position on activities so far and SM's refusal to provide settlement data

1. Artists have previously signed a long-term exclusive contract with SM for more than 12 to 13 years and have been working diligently as members of EXO.

2. During the long-term exclusive contract period as above, artists have only trusted SM's explanation of the settlement amount that is settled every time, and have received the settlement amount by looking at the data unilaterally prepared by SM without specific and objective evidence. In response, artists have recently formally requested copies of settlement data and settlement grounds several times through their agents, but SM replied that they cannot provide copies of the data.

3. SM is obligated to provide artists with settlement data and settlement grounds, including total income details, expenses subject to deduction, and amount subject to deduction, under the existing exclusive contract, under the Pop Culture and Arts Industry Development Act. In addition, the settlement cycle under the above exclusive contract arrives twice a year, so the above settlement data and settlement basis must also be provided twice a year. However, during the exclusive contract period of 12 or 13 years, SM has not properly provided such settlement data and settlement grounds to artists.

4. According to the precedent, the exclusive contract is based on a high degree of trust. If the agency fails to fulfill its obligation to provide settlement data, the celebrity will not be properly guaranteed the right to review and dispute the profit settlement. In addition, despite several requests through an agent's lawyer, SM has already failed to comply with the obligation to provide data, resulting in a reason for termination of the existing exclusive contract.

5. Despite the artists' earnest request to provide a copy of the settlement data by May 31st through several proofs of contents, SM was forced to notify SM that the existing exclusive contract would be terminated on June 1st.

6. If SM paid the artist the settlement money accurately, there would be no reason not to provide the settlement data and settlement basis. SM's failure to provide these settlement data and settlement grounds is a strong proof that SM did not pay the artists properly, and the artists will take all civil and criminal legal actions against SM, including filing a settlement claim.

7. Also, if you haven't provided settlement data and settlement basis to other SM artists, as in the case of artists (Baekhyun, Xiumin, Chen), this may not just be a problem for Baekhyun, Xiumin, and Chen, but for all SM artists in the end.

8. In fact, it is very difficult for Baekhyun, Xiumin, and Chen to file a legal dispute against SM, a large company, but they started with the heart and courage to replace the various doubts that many SM artists have.

<2 > Artist's position on unreasonably long-term contracts and further extension attempts

1. Previously, artists have signed exclusive contracts with SM for more than 12 to 13 years. This is too different from the standard contract for pop culture artists (singer-centered) announced by the Fair Trade Commission based on the seven-year contract period, and it is unilaterally disadvantageous to artists beyond the minimum reasonable extent.

2. SM already has 13 years of contract, including an extended period in the provisional disposition of the TVXQ case, and the reasonable violation of the Seoul Central Law is that SM uses its superior position to exercise unfair control and excessively violate its economic freedom and basic rights. In the case, the court again pointed out that it is very difficult for idol stars, such as applicants (TVX members), to continue their popularity in their 30s and beyond.

3. As such, the existing exclusive contract seriously restricts personal rights for an excessively long period of time and constitutes "an act of unfairly using the position of the transaction" in Article 45 (1) 6 of the Monopoly Regulation and Fair Trade Act. In addition, due to the type of unfair trade practices in attached Table 2 of the Enforcement Decree of the same Act, such a long-term compulsion corresponds to "compelling profit provision" or "providing disadvantages (setting unfavorable transaction conditions)" in the above attached Table.

4. Furthermore, SM made artists sign an exclusive contract to extend their debut date by 7 years and an additional 3 years if they are overseas. However, in the case of K-pop artists in Korea, it takes at least months and years to make their debut, and overseas activities are a natural premise. Furthermore, even though Xiumin and Chen were members who planned to work in China from the beginning, the exclusive contract, which adds three years if they work abroad, forced them to sign a long-term contract of more than 10 years based on the date of the exclusive contract from the beginning.

5. On the other hand, SM is trying to claim a minimum contract period of 17 years or 18 years by having artists sign a follow-up exclusive contract again, not even enough to sign an exclusive contract for 12 to 13 years as above. This is SM's repeatedly committing extremely unjust tyranny against artists.

6. In the process of sealing a subsequent exclusive contract, the artists were unable to negotiate properly under the existing exclusive contract, and it was difficult to set the terms of the contract or reflect their wishes on an equal footing. In the case of a provisional disposition in the TVXQ case, the court should have been able to stop the existing negotiations and negotiate with other entertainment agencies other than SM if the applicants (TV TVXQ members) only passively signed the exclusive contract form presented by SM, Even if an extension agreement was reached after the applicants (TVXI members) established their position as entertainers, applicants who were already bound by the existing exclusive contract could not strengthen their bargaining power. (Refer to the Seoul Central District Court on February 15, 2011).

7. It is also pointed out that such subsequent signing of exclusive contracts constitutes "an act of unfairly using the status of the transaction" in Article 45 (1) 6 of the Monopoly Regulation and Fair Trade Act. As such, the long-term compulsion using a subsequent exclusive contract is considered to correspond separately to the "compulsory provision of profits" or "unprofitable provision of transaction conditions" in attached Table 2 of the Enforcement Decree of the same Act.

8. Also, I understand that this long-term exclusive contract is in a similar situation not only for Baekhyun, Xiumin, and Chen, but also for most artists from SM.

9. Baekhyun, Xiumin, and Chen are seriously considering filing a lawsuit against the Fair Trade Commission for the long-term signing of existing exclusive contracts and subsequent exclusive contracts.

<3> A message to the fans

1. I'm sorry for causing so much concern to the fans about this, and I can't help but feel sorry.

2. Due to the difference in position with SM, we are inevitably pushing for legal action, but we will do our best to find wise measures so that fans do not worry too much and resolve the dispute well.

3. In fact, we are very scared and scared of this moment because we want to make a small voice about injustice that we have not been able to tell you before.

4. We hope you will be interested in our words and our hard courage. Once again, we sincerely thank our fans for supporting us for a long time."

Source

#Baekhyun #Jongdae #Xiumin #Exo #Chen #Minseok #Exo CBX #CBX Lawsuit

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