[INFO] 091029 SM-TVXQ Contract w/r/t/ Income Distribution Options

[diana©]

[INFO] 091029 SM-TVXQ Contract w/r/t/ Income Distribution


(IMG:http://i37.tinypic.com/35mfuvb.jpg)

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.


Source: dnbn
Translation: Inklette @ dnbn
Shared by: OneTVXQ.com

[linhkawaii]

0 cent for all the hard works D:

[cheryl_xiah]

wth, $0 for all the sales of those things? stupid ~

[diana©]

Raaaaaaaaaaaaaaage raaaaaaaaaaaaaaage raaaaaaaaaaaaaaage (IMG:style_emoticons/default/angry.gif)

So all the while, when I thought I've been supporting them by buying the 1983719379 versions of 'O,' their concert DVDs, etc. nothing goes to them? We've only been feeding Kim Young Min (whats-his-face) and the other big-shots at SM with grubby paws? URGH~

[Ichigo]

....O !?!??!?!!??!
i wanna help out so badly
but there's like no way I can
( i'm not allowed to buy stuff over the internet )
i'm gonna see if my friends can buy some albums or singles =]

[fanaitmiec]

omg.
it's this bad?!
i pity the guys.
after so much slogging and hard work & they received nothing in return??!
just imagine how much would they have made, & SM took 'em all?!
honestly,
if swearing is allowed here,
i would type a whole lot of profanities here.
*cursing*

[innatvxq]

SM is being really unfair.
DBSK gets nothing out of all they're hard work.

[lowvivian]

Poor boys, they worked so hard and yet recieved nothing. I mean, it's rather ridiculous not to be paid when they go on shows and all.

[xYunHo]

OMFG !!!!!!!!!!!
YOU CANNOT BE SERIOUS ?
I'M GOING MAD RIGHT NOW ~ THIS IS NOT RIGHT D:
NOT ONLY THAT THIS IS SERIOUSLY OUTRAGEOUS !
It's not only illegal... it's inhumane !
What kind of person in their right mind who do something so despicable ???
ARGH! Seriously.. I can't believe it . I must have been crazy when I actually thought of buying anything from SM!
Ugh I am so mad right now .
This is truly ridiculous .
The court better do something about SM ! Not just the contract because really they don't even follow the contract themselves.
SM is truly a BEAST... and not in a good way.

[dang! that!]

this is seriously heartbreaking just by reading it. i dont know what to say, MYGOD!
sm is like the cruelest company ever
Dong Bang Shin KI , i've never imagine that their life is this bad with SM

[alyana]

WTH?! The boys are receiving totally nothing from all their hard work???!!
That is just so so UNFAIR on their part!! Like they are working hard, doing everything for NOTHING??!!
Aish~! SM is getting all the money whick DBSK ONLY DESERVES!
SM is so unfair! Other talent agencies are not like this, I hope they treat all their artists in a very good way.
Ugh, after reading this article, SM really pissed me off >.<
I won't mind if the boys transfer to another agency like YG, but I know our boys will never do that. I just wish things like this won't ever happen again, it's too unfair.
We Cassies all over the world should just support and give all of our love to the boys all the way. DBSK FIGHTING~!<33

[karolina]

What... The.. Hell... It's even worse than I thought. Who those monsters think they are huh!? *fires bazooka at them*

As much as I want to buy a few things from the Boys. SME won't even see a CENT from me until the Boys will get their money back!

[bellie017]

TVXQ doesn't deserve to be treated like this...
they've worked so hard yet they don't received any reward for their effort..
i don't know why SME need to do this to them..i hate it..

I'll pray that they will receive justice to the maltreatment of SME...
TVXQ FIGHTING!

[zoe91]

totally can't stand....
What we buy mean 0$ for them!! TOo cruel,such a fool corp.
I think i'm gonna resist their products.

[Jadis]

...reading this, and I am outraged.

WHY OH WHY?!

aish. I really don't understand how SM works.

Hope they win (IMG:style_emoticons/default/biggrin.gif)

[shakee]

that's crazy...
seeing how they're so cheerful, polite and happy on each TV show... I don't understand what kind of power make them like that..

[sassychicks]

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.

I clearly remembered when the first time I watched AADBSK3 2U couple talk.
Yoochun told Yunho that one thing that he dislike about Yunho is being in the studio, to record and re-record the song until the result met the words "perfect" up to his standard. Further to this, Yoochun also informed us that the studio rent is expensive as it's calculated per hour basis.
I was wondering why Yoochunnie is worried about money as SM should pay the studio rental. But now I do understand why Yoochun acted like that. It's because TVXQ spent their own money for the studio rent. The cost is including in the point number 3 (the rent).

Last year, during the MIROTIC days when the boys have had the activities both in Korea and Japan, one stalker fans was getting their picture inside the airplane. And guess what? TVXQ,the Asian number 1 stars, were in the economy class. At that time, I was wondering WHY... but now I know, as they paid their own travel expenses. SM didn't interfere in this subject. This is really unacceptable, even in my office every business trip paid by company not by the employee.

So,...if you're still calling yourself CASSIOPEIA,TVXQ fans,Bigeast or whatsoever...please remember, DO NOT PURCHASE original stuff from SM. Every cent count.

[dbskobsessed]

UTTERLY SPEECHLESS. HOW DARE THEY. HOW FREAKING DARE THEY. SRSLY?! THIS IS WHACK YO.

[CallMeLiYah]

thats ridiculous. I'm so pissed off now -_-...I'm so angry I can't do anything for them to change it...and it makes me angry that they still manage to come out with happy faces and perform for us with all their effort, and they get NOTHING in return...its RIDICULOUS.
Other than that I'm speechless...

This post has been edited by CallMeLiYah: Oct 30 2009, 01:06 PM

[Billie]

OMG
it's just sooo bad!
Its unacceptable!
poor DBSK (IMG:style_emoticons/default/sad.gif)
I hate SM Entertainment...