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26 / F / NewYork
Posted 7/31/09 , edited 7/31/09
Remember last month about the supposed false rumor" that TVXQ / DBSK / Tohoshinki was breaking up?
Well, it seems that information may have actually been true. According to this source, it states that on July 31st, 3 TVXQ Members, specifically Micky Yoochun, Jaejoong, and Xiah Junsu filed an injunction against SM Entertainment in the Seoul Central District Court to remove the "non exclusivity clause" in their contract.

Yunho and Changmin have decided not to file an injunction. Basically in a nutshell, the three of them supposedly had meetings with a Chinese cosmetic company and launched a new cosmetic line called CreBeau. They invested some of their own money and also in turn received some lucrative gifts from the Chinese company as an incentive package for signing up and investing. Some of the rumored gifts includes Micky's Audi R8 and the townhouse for Xiah's parents.
SM Entertainment supposedly got wind of this news and because SM Entertainment has the "exclusivity clause" in their contract, SM Entertainment tried to prevent this from happening. Unhappy with this, and already unhappy that they feel they're being underpaid profit-wise from album sales, you can understand why they're trying to terminate the "exclusivity clause" in their contracts. There's also rumors that if a favorable agreement isn't met, the three will be leaving the group for good.

SM Entertainment via phone to one of the Korean news media outlets stated that they are aware of the situation, the board of directors is having an emergency meeting and are discussing what to do. They'll have an official statement soon.

Update from the lawyers representing Micky, Jaejoong, and Xiah: The three and the lawyers have been discussing this for over 2 months. They tried to settle this with SM Entertainment through negotiations behind closed doors, but they broke down therefore the injunction. The contracts are for 13 years and the profit splits are 80% to SM Entertainment and 20% to TVXQ (divided by 5 for each member). The three are prepared to go to court and file a lawsuit if the exclusivity clause isn't dropped.
52512 cr points
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26 / F / Somewhere in JaeJ...
Posted 7/31/09 , edited 8/1/09
DNBN Cassie explanation - "Always Have Faith"

Here is a nice explanation from Korean Cassies of what's really going on. Hopefully this will help clear up some rumors and confusion.

by : CASSIOPEIA 데니제제

1. What is DBSK's break up, and why did this break up news pop out?
and Are the news about DBSK true?

+ The words about DBSK breaking up came up as the news of the 3 members Jaejoong, YuChun, and Junsu filing a "Provisional disposition of suspending exclusive/ongoing contract" to the court came out. The breaking up rumors are just false rumors. The reason why the breakup rumors came out is because of the news of the members filing a suspension of the contract created more rumors amongst the fans. The most known false rumors flowing around from this were : The members not getting along, and the problems with SM Ent. and the member's cosmetic line. A these rumors came out the break up rumors came out as well. The only real truth that are out about DBSK is the news about the members filing a suspension of contract. That's the only one.

2. What is the deal with DBSK's rumors about setting up a cosmetic company and the problems? What kind of relation does this have?

+ To tell the truth there is no relation with the cosmetic line and DBSK's break up rumors. Of course the members that had filed the contract suspension were the ones that are opening the store, but the members are not the owners of the cosmetic company. They are just managing ONE store. The only thing the 3 members are responsible for is just ONE branch of the entire company. There were rumors about the members and the company in the past, and it seems to have been building up into false rumors. but the cosmetic line having relations to the reason of why the members have filed the contract suspensions are not true. These rumors are just what the people are assuming because they have no clue what is going on with what is true and what is not true. because of this reason, as long as there has not been a clear statement of confirmation, it is not true.

3. What is a "Provisional disposition of suspending exclusive contract" ? and What happens when this lawsuit is in action?

+ Simply, when you file a lawsuit of suspending a contract, you are basically putting a stop to the validity of the existing contract. An ongoing contract is basically saying that you will stay with the same company for a long time, but DBSK wants to fix the existing contract's fishy areas and wants to express how the members wants to fix the contract and show what they want. That is it. This filing of lawsuit has nothing to do with DBSK members breaking up. And this lawsuit has nothing to do with who will be WINNING or LOSING. If this file gets passed and accepted then it just means that the existing contract will just lose the validity not that DBSK will leave SM Ent. and have DBSK break up.

4. On the re-contracting, there are talks that Yunho and Changmin have done a re-contract with SM Ent. is this true?

+ I don't know where you heard this from, but this has never been confirmed formally and is just a false rumor. There has not even been a real news report of this rumor, and it's JUST the 3 members filing a provisional disposition about the contract. Just because the 3 members have put out a provision doesn't mean that just because only 3 members did that the other 2 made recontracts. These are just rumors. There were no talks or whatsoever about this. This is untrue.

5. How do we deal with all the false allegations, rumors, and articles that are still spreading?

+ To tell the truth, not all of us have the high tolerance and knowledge to be able to just pass and ignore all the news articles spreading over the internet and the on the search engines. And also the fact that not many of us have unlimited knowledge of how lawsuits work, of course many of us will panic over the news articles talking about the rumors as if they were facts, and about DBSK breaking up. In these kind of cases we just have to stay strong when seeing overly exaggerated articles and false articles. Because we Cassies are together with DBSK we have to show them. We can't leave rude comments, and to not spread false rumors from reading false articles ourselves. We have to spread the right informations to the people and learn to gain the right informations as well. We have to request posts about taking down false informations and post and scrap the articles that have been formally confirmed by sm.ent and from right sources.

6. Even though they are rumors, rumors have been proved true alot of the times. Are there anything out there that are actual facts?

+ As long as the rumors have not been formally confirmed there is no possible way that we can call it actual facts. But we are for sure that the only thing 3 members have done is that they filed a lawsuit to FIX the contract (edit it basically) regarding slave contract, the validity date of the contract, and unfair contract listings. And to do this they have right now put a hard stance by putting a suspension to the validity of the existing contract. A lot of people are saying that DBSK will just become the 2nd H.O.T. and S.E.S. but situation is very different. DBSK is not just top idols in Korea but also artists who are very influential outside of Korea. SM. Dnt is not a company that would kick out DBSK just because their artist put a lawsuit. Even if DBSK was to break up from Sm.ent, this does not mean that DBSK will break up. Many might be asking ' What does that mean?' DBSK is also in contract with a ent. group AVEX in japan. The contract validity with AVEX ent. has not ended and also have contracted with 2 companies for 2 CFs. DBSK also will be participating in Japan's A-Nation starting today and also on the 1st of August, 22,23,29,and 30.
If DBSK was to even break away from SM Ent, they will have to deal with damages for breach of contract with Avex. Thing will get dirty. There has been the same situation in Japan with a group called SMAP. Back then SMAP's member Kimura takaya(?) had filed a lawsuit against his own company called Johnny's ent. The company backed away and reedited the contract and after that all the rest of the idol groups from there follows the new contract. Back then everyone there said that Kimura was going to take off to a new company and be solo, and every year his group gets hit with false rumors of breaking up but they are still together to this day. Anyway again, we believe that it will be best if all you guys would stop making careless judgment about DBSK's breakup rumors.

SO BASICALLY THE TO POINT IS THAT: DBSK's members Jaejoong, Xiah Junsu, and Micky Yoochun have filed a lawsuit " Provisional disposition of suspending exclusive/ongoing contract" based on the contract's basic terms of conditions, 13 year of slave contract term conditions of money. The false and over exaggerated news reports are overflowing, and the rumors of the company having issues with the members company line and the members not getting along are false. Just because they filed a lawsuit does not mean they are breaking up. They are just filing a lawsuit to FIX the existing contract with SM Ent. They have filed a lawsuit because SM Ent. would not negotiate in talks with the members and they have tried many times. Because negotiations did not get through the members as artist have filed a lawsuit against their company. The only way. So it is best to not believe the false rumors and read false articles.

Original Korean HERE.
Shared by DBSKnights + dksldi @soompi

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