On February 17th, the Seoul Central District Court dismissed both lawsuits filed by SM Entertainment against JYJ.
To recap, SM Entertainment filed an objection on October 27th, 2009, claiming that the Seoul Central District Court’s order to prevent them from interfering with JYJ’s individual activities was illegal.
The court rejected SM’s injunction objection application by stating, “The exclusive contract between SM and JYJ forces the celebrity to become subordinate to the agency without any discretion. JYJ has no option but to follow SM’s actions due to the subordinate rank they are forced under in the power of SM. A long-term subordinate contract cannot be justified by the risks the agency took in investments, as well as international advancements.”
They continued, “Aside from the long-term contract terms, SM’s ability to supervise and direct every move made by JYJ, as well as the clause claiming that JYJ must repay for losses only emphasizes the subordinate positions of JYJ in the contract, so the injunction is invalid.”
Regarding the second injunction filed by SM Entertainment, asking the court to suspend JYJ’s contract with CJES Entertainment, the court replied by saying that the injunction is invalid since SM Entertainment was ordered on October 27th, 2009 that they were to not interfere with JYJ’s individual activities, and their injunction was in breach of that order.
Baek Chang Ju, CEO of CJES Entertainment, commented, “We consider it a victory of truth and hope that their activities are no longer hindered by forced accusations of double contracts. We will be working hard to show only the best side of JYJ to the public. I would like to thank the JYJ members and the staff for consistently battling a tiring fight against Goliath.”
In conclusion, the exclusive contract between SM and JYJ is invalid, and JYJ’s individual activities are legal.
Source: allkpop, Newsen, E Daily, World Journal, Sports Chosun via Daum