SM-TVXQ Contract w/r/t/ Income Distribution, Friday October 30, 2009 Korea

The Court has granted the injunction filed by the members of TVXQ against SM Entertainment.The Court found that the Contract between SM and the Members was unconscionable and against public policy. Following this victory, the Members are proceeding with the main suit to ask for the rightful shares of all income generated from their activities.

The following is a summary of the outrageous terms of the Contract that relates to the distribution of income. The clear conclusion is that the TVXQ members have received next to nothing for their six years of work, and that virtually all money we spend to buy SM products stay with SM. Please read the below to see the extent of the injustice.

Please keep in mind that SM's contract with TVXQ has been amended five times and therefore the applicable terms have varied over time. Accounting for all the resulting complexities, the truth adds up to the following:

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I. TVXQ has received $0 for their album sales prior to July 2008, and only a negligible amount after that date.

Prior to the fifth and final round of amendments on July 1, 2008, the Contract read that for any album or single with sales not exceeding 500,000 copies, SM would be entitled to 100% of the profits, leaving the members with nothing. From the time of TVXQ's debut in late 2003 and until TVXQ's release of their 4th Korean album "Mirotic" in September 2008, no Korean album had sold more than 500,000 copies. Therefore, prior to July 2008 TVXQ has had absolutely zero income from their album sales.

On July 1,2008, SM amended the Contract to give each Member 1% of total sales for each album that sells over 200,000 copies. For any albums that sell fewer copies, the members are to receive 0.6% to 0%. SM has not honored even these outrageous terms, as it has not paid TVXQ a single cent since February 2009.

In sum, SM has kept 100% of all sales that TVXQ has generated with the sales of their albums and singles prior to July 2008, and has kept 95% or more of the sales after that date.

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II. TVXQ has received $0 for the sales of concert DVDs and albums featuring recordings from such concerts.

Under the Contract, the Members are not entitled to receive any share of the profits generated from sales of concert DVDs and "live" albums.

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III. TVXQ has received $0 for their appearances on TV programs.

Under the Contract, Members are not entitled to receive any share of the profits made through their TV appearances if the appearance is of a temporary nature. As all programs on which TVXQ appeared have featured the Members as "guests"and therefore by nature have been temporary, SM has kept all profits that TVXQ has generated from these TV appearances.

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IV. For all other possible sources of revenue, SM subtracts from the total revenue all expenses, including salaries of other staff, stage preparation expenses, rent, travel expenses, food expenses, and the like, then gives TVXQ only a fraction of the remaining amount.

As for all other sources of income, the Contract states that TVXQ is entitled to varying percentages of the "net income." The Contract defines "net income" to be the amount remaining after the applicable "operating costs". The "operating costs" are defined to include such expenses that are traditionally expected to be covered by the employer, including but not limited to 1) salaries of the staff (manager, clothing coordinators, makeup artists, dance crew, and the like), 2) performing stage preparation costs, 3) living expenses, including rent and water/electricity bills, 4) travel expenses, including plane ticket costs, 5) meal expenses, and the like.

Even after all these "operating costs" are deducted from the net income, the Members are only entitled to a small percentage of the remainder while SM keeps the rest.

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In conclusion, please realize that SM has kept virtually all of the profits that our Members have generated over the past six years. Our Members have received, literally, next to nothing.

Following thevictory of the granting of the preliminary injunction, the Members now prepare for a suit to claim their rightful share of the profits that they themselves generated. Please help them win the lawsuit by boycotting all SM-made products and merchandises (this excludes all Avex-made products, which includes Japanese albums and singles released in Japan).

Please remember that every cent you spend on SM will be used to fuel SM's efforts against our Members in the main suit. We as fans support TVXQ in their rightful fight fortheir rights.

After U-Know Yunho Appointment as Advertising Model, EVISU is Having Steady Rise in Revenue. Friday October 30, 2009 Korea

Ever since the appointment of TVXQ leader U-Know Yunho as unique casual jeans EVISU advertising model for 2009 F/W season, the brand’s sale in Seoul as well as sale throughout the region has experienced a steady rise.

Each product ads that is using U-Know Yunho has been crowned as best sales item including U-Know Yunho “HOPE campaign t-shirt” and “U-KNOW t-shirt” which are the having the best response and large share in revenue.

In addition, starting from September to November, will be released sequentially “poster calendar” item revealing U-Know Yunho’s autumn to winter pictures which is going to be updated monthly. With various EVISU special images of the energetic-look U-Know Yunho, another great response from fans to this product is expected.

This EVISU’s star marketing efforts has generated around 100 million monthly sales from EVISU stores all around the country.

TVXQ will Resume Activities in Japan Friday October 30, 2009 Korea

After the last October 27th Court decision of terminating some effects of exclusive contract, the five members of TVXQ will be back to Japan and resume their activities there.

On the 29th (today) Daily Sports Japan met TVXQ’s official from their signed Japanese label AVEX, and as quoted from the official, TVXQ members should be back to Japan to continue their full activities this fall.

The official did not mention a specific schedule, however he said that the year-end events such as “The 51st TBS Japan Record Award” (organized by Japan Composers Association) and especially “The 60th NHK Uta Gassen” are included in the current schedule.

According to Sankei Sports on the 29th, the popular group Tohoshinki will also participate in theme song for NHK new drama “とめはねっ!铃里高校书道部” that is starting on January 7th next year, the song is entitled “BREAK OUT!”

NHK side commented, “We’re gathering image as Tohoshinki is one of the most popular group in Japan right now.” . While TVXQ leader U-Know Yunho said about their new song, “We hope through this song, we can give even just a little cheering hope for the youngsters.”

Tohoshinki To Sing Theme Song For NHK's New Drama Thursday October 29, 2009 Japan

It was revealed on the 28th that Korea's popular 5-member group, Tohoshinki, will be singing the theme song "BREAK OUT!" (on sale this winter) for NHK's new drama 「とめはねっ！鈴里高校書道部」 (starting next year 7th January, Thursday, 8pm).

Having sung the drama theme song "A Thousand Year Love Song" for NHK's period drama "The Legend" (2007~2008), this is their first Japanese production with the same agency. After attending last year's Kouhaku Uta Gassen for the first time, and holding a successful 2-day Tokyo Dome tour, they are "a group with the most power" (agency), and were selected among other artists.

The OST is a lively pop song. It's a story about struggling through competitions and love, and takes place in a high school's calligraphy club, ♪つかみとれ未来　運命なんて　きっとＭａｋｅ　ｙｏｕｒｓｅｌｆ　君次第 (T/N: Seizing the future, you have to make your own fate, it's up to you); the song relays the message of pushing forward for your dreams. The leader, Yunho (23), commented, "It's a song that supports the feelings of any youth who is doing his best."

TVXQ Jaejoong’s Heaven’s Postman release date changed? 26 Oct 2009

Last week we reported that Heaven's Postman, a telecinema production starring TVXQ / DBSK / Tohoshinki's Jaejoong and Han Hyo-joo was going to be released on November 25th. However, there's now rumors to the contrary.

A Japanese media report is reporting that Heaven's Postman will be released in theaters on November 12th. Now, the people in head of the Telecinema 7 project have neither confirmed nor denied this so take this as simply rumor at this point. I know that Ninja Assassin is going to be released on November 25th, and Korean superstar Rain/Bi will have the theaters in Korea packed to see his movie, so maybe that is the reason for moving up the release date? Regardless, fans would rather watch it sooner than later.

Court rules in TVXQ’s favor 27 Oct 2009

Earlier today, the court had issued a ruling that SM Entertainment cannot interfere with the individual activities of the three members of TVXQ: Hero Jaejoong, Micky Yoochun and Xiah Junsu.

Basically, SM Entertainment can no longer claim full exclusivity on the three TVXQ members. However, the court was unable to decide on whether the contract is invalid at this point as there were way too many variables.

In response, SM Entertainment has revealed that they will immediately appeal the ruling. SME will also hold an official press conference to disclose the truth and their position regarding this matter, which was never revealed to the media previously.

This case ain't over yet as Sejong law firm, representing TVXQ, will file a lawsuit to be compensated for damages as well as to have the contract deemed invalid.

With the recent developments of this case, many feel confident that TVXQ will be able to continue as a group. We will just have to wait a little longer.

TVXQ's Dogs

Where is the Secret Hidden, Such That Tohoshinki has Been Making Glorious Achievement, Sunday October 25th 2009 Japan

Tohoshinki has received intense support from fans by the five members’ personalities, outstanding singing abilities, and physical beauty through “MIROTIC” (recorded in their fourth Korean album). KBS2TV has aired the truth in their program “Music Bank.” (A/N: This bit kinda confused me o.o)

Tohoshinki is popular not only in Korea, but is also becoming endlessly popular in Japan, too. They’re valued as “The Most Successful Foreign Artist in Japan,” and are receiving enthusiastic support from the Japanese fans, just the same as that from Korean fans.

In September, Jaejoong and Yoochun’s duo album, and the Tokyo Dome Concert DVD were placed number one on the Oricon chart, from the first day the products were released. This month, they received the “GOLD” title from the Recording Industry Association of Japan, selling more than 100,000 albums and DVDs.

A representative from the Oricon Chart says, “Tohoshinki is the most successful (foreign) artist in Japan,” and twenty years have passed since an artist from another country has topped the Total chart. He also stated that Tohoshinki is the third artist who has sold more than 100,000 albums, and the only foreigners who have succeeded before are The Beatles and Led Zeppelin.

Tohoshinki made their debut in Japan in 2005, and their success at the Tokyo Dome in four years’ time shows that they are smoothly running up the stairs of success.

It is a great significance that as a new singer, they have broken the Japanese barrier, and that they have performed at the Tokyo Dome (where every Japanese singer dreams to hold concerts), even though they are not Japanese.

In Korea, they are top stars achieving the grand slam, but their activities in Japan started by performing on the stairs of shopping centers. Their enthusiastic activities were connected to the concert tour, gathering a total of 300,000, including the Tokyo Dome.

It is very difficult to gather an audience of 300,000 even if you are a top star in Japan. The current Japanese top idol group Arashi achieved this number on their eighth year. Comparing the numbers, you can see that Tohoshinki has achieved such a great popularity that no one can ever imagine.

On their 2005 debut tour, Tohoshinki had gathered approximately 15,000 people. In just four years, the numbers jumped twenty times, and that speaks of their booming popularity.

In the biggest Japanese record shops, there are now always big Tohoshinki posters, and in a restaurant, there are even menus like “Jaejoong Seafood Tot Pot Ki” and “Yoochun Omelette.” Tohoshinki’s popularity seems to be beyond imagination.

Tohoshinki is saying, “When we first made a debut in Japan, we cannot speak Japanese fluently, and that all we can do was to introduce the songs in Japanese. But now, we can understand each other, and over that, we can express our true feelings directly by singing.” They also stated that “Coming to Japan, we have achieved the dream to perform on our own at the Tokyo Dome, and Tohoshinki has grown much bigger. This was achieved because all the fans supported us, giving us all their love.”

Tohoshinki will hold a nationwide mega fan meeting in order to respond to these fans’ support. Starting on the 19th to the 20th of January at the Kobe World Kinen Hall, the 27th of January at the Sendai Hot Super Arena, and on the 30th to the 31st of January at the Yokohama Arena, there will be a total of ten fan meetings, and Tohoshinki and the fans will have a joyful time together.

A person who is involved in the Japanese entertainment industry states that “Tohoshinki became highly recognized in Japan last year, and we can say that they are in no way inferior to other top Japanese idol groups this year.” He also states that “I am expecting Tohoshinki to play their roles, so that the friendly relations between Korea and Japan will become more solid, together with Bae Yongjoon.”

jaechunsu express their gratitude; Court rules partial provisional disposition of exclusive belonging terms for TVXQ’s contract with SM Ent, Tuesday O

The court has gave out the final ruling on the lawsuit between the 3 members of Dong Bang Shin Ki and SM Entertainment.

Seoul Central Court revealed on 27th October a citation of their ruling for the lawsuit between the SM Entertainment and TVXQ Hero JaeJoong, Xiah JunSu and Micky YooChun.

It was revealed, “We see that part of the terms in their contract has much destroyed the good morals of the whole contract. SM Entertainment should not interfere with its singers’ independent unique activities and also contract to perform and other entertainment activities.”

Previously in July, the 3 members of Dong Bang Shin Ki has revealed their 13-year long contract under SM Entertainment, which meant that they will possibly be working under SM Entertainment for life, and has applied for the effect of provisional disposition of the terms in their contract. And the 2 parties have engaged in a lawsuit as SM Entertainment insist that the terms under their contract are reasonable.

The court also revealed, “Through the individual agreement, there is high possibility for group activities to continue, but for the provisional disposition of the existing activities and the profit allocation, it is invalid and difficult. We will have to dismiss the application for the full provisional disposition of the effects of the exclusive belonging terms in the contract.”

THSK's Vocal Abilities Recognised In Japan! "They're Not A Dance Group, They're An Acapella Group.", Sunday October 25, 2009 Korea/Japan

On 23rd October, MBC's "Star The Secret" did a coverage on THSK's popularity level in Japan, saying that THSK is a group that ensured that "Any product that they endorse is sure to sell; as long as they release an album, it'll immediately be safe in the number one ranking in 5 minutes; to get a ticket for their constantly sold-out concerts, fans have to go into mouse-wars; they are the group that has the biggest fanbase in the company."

Something that caught everyone's eye recently: THSK is a hot group in Japan, and their vocal abilities are recognised in Japan. Production crew and staff who have worked with THSK, as well as Japanese fans all say that "We've always known that THSK is an acapella group. In Korea, they are recognised as an idol group for their dancing and singing, and their vocal abilities are now being shown off in Japan."

It was only when the production crew for the show was checking on THSK's popularity in Japan, did they realise that THSK's popularity in Japan has long exceeded their expectations by far, in fact, they've climbed to unimaginable heights.

Pinky candy, endorsed by THSK, is now selling nationwide in Japan. In the biggest Japanese music sales arena, the whole place is filled with large posters of THSK and The Beatles. The person in charge told the programme crew "THSK's albums are popular in the first place, so we will put up a special selling booth in the middle of the arena, and of THSK's albums will be sold there. As long as THSK put out a record, it's almost confirmed that they will reign in the charts, they are really popular."

A staff from Japanese station KNTV said this about THSK's popularity to the production crew, "THSK, whose popularity is shooting skyhigh in Japan, is different from the Hallyu starts that enjoy popularity here. THSK didn't use the Hally wave and didn't come to Japan as Korean stars; debuting instead, as a JPOP group in Japan, formed by 5 Koreans. During their debut period, like all new artists, they went around and did small-scale activities, and the members of THSK even went to the broadcast stations personally to promote their albums."

When they first debuted, they stood on a platform and performed in front of 30 people. Ironically, when they were experiencing this in Japan, it was at a time when they were at the height of their popularity in Korea, sweeping all the awards in the ceremonies, and becoming Korea's top stars in 2006.

They relinquished their positions as top stars, as well as their pride, and started doing activities in Japan from the bottom. After almost 4 long years of working in Japan, THSK finally performed on their dream stage, the Tokyo Dome, with their own concert, and are unanimously acknowledged by the Japanese audience: THSK is the most successful Korean artist in Japan.