One of Asia’s biggest group Dong Bang Shin Ki, has 3 of its members in a possible lawsuit against their own company SM Entertainment. Dong Bang Shin Ki members Xiah JunSu, Micky YooChun and Hero JaeJoong had gone to Seoul Central District Court to hand in an application for provisional disposition to terminate all effects of their exclusive belonging rights contract with SM on 31st July. It has been known that their reasons for doing so is that the contract with SM Entertainment has many irrelevant conditions attached. It is also known that the content to the contract the 3 members cannot agree to includes having them belonging exclusively to SM Entertainment for 13 years and also unhappiness over profit allocation. The lawyer responsible for this case said, “We are currently preparing for a lawsuit against SM for this contract. (About the reasons to why) We cannot reveal the details now.” There has also been saying that the 3 members have differing views to SM on their upcoming ‘Dong Bang Shin Ki cosmetic enterprise expansion’. Currently out of the 3 members, JunSu is already doing a cosmetic business with his parents. It is said that there were plans for the company to operate a cosmetic business, with sheep placenta as the main ingredient, using the group’s name as the brand name in Seoul GangNam and GyeongGiDo IlSan. It is said that there were also plans for the business to be launched in China bringing in hundreds millions KRW in profit. But it has been said that the 2 sides are having some differing views and also complications arose through their discussion on how the product and brand will go. Follow up #1 What will happen to the 3 members’ activities scheduled for Dong Bang Shin Ki? There is the upcoming SMTown Live 09 on 16th August. It seems that the members may not be appearing for the concert with their lawsuit with the company. Especially with all the rumours lately about ‘disbanding of Dong Bang Shin Ki’. To add on, one of the 3 members’ parents have also established their won entertainment company in China. Fans are also very taken back by this incident. Many have voiced their disbeliefs on various discussion forums. Follow Up #2: One of the Korean new media has known through phone call from SM and SM said, “We are aware that some of the (DBSK) members have some disagreements with the company, but we do not know that they have sparked a lawsuit wth the company. The director board of the company is currently having an urgent meeting in an undisclosed place in Seoul to discuss about their countermeasures.” They also added, “We will have our official stand asap”. Credit: KBites =================================================== TVXQ vs SM Entertainment. TVXQ is really breaking up? 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 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 a some gifts from the Chinese company as 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. credit: allkpop ==================================================== update: 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.
