Here's the summary of what I've posted regarding the contract, and my thoughts about the lawsuit.
I think I've shown that the contract is much better than how it is perceived by most people, and also shown that there are a lot of misunderstandings caused by false/twisted info from the fansites/blogs/news articles.
The profit distribution of the contract is more than satisfying, actually I think it's quite good, and there's not much to complain about especially when TVXQ receives 70% of the profit from most foreign activities where they're most active (Japan).
I also think the 13 year contract term is fine since TVXQ was planned for foreign activities requiring lengthy terms, and it was decided with all the members' consent after everything was explained to them. When I post the transcript from the court trials, there will be more information regarding this.
I personally think the breach of contract clause is unfair, but that clause was following the guideline set by the Korean Fair Trade Commission.
In conclusion, it is of my opinion that the contract was not bad enough to file a lawsuit and break TVXQ. If the contract was the only problem CJS had with SM, they should have at least tried to re-negotiate the terms that they were not satisfied with instead of filing a lawsuit, and I believe SM would've worked with them and redo the contract. I have reasons to believe that, and those will be covered in the future when I post about the trial sessions.
2. About the Lawsuit
Having said that, if the lawsuit was solely decided on the contract itself, I think CJS have a good chance to win the case because of the breach of contract penalty clause despite SM following FTC's guideline. That is why CJS's lawyers have been concentrating on the contract itself, and been trying to persuade the judge to do the same. Also, that was the main reason why Super Junior's HanKyung won his case against SM. On the other hand, SM is trying to prove that CJS filed the lawsuit because of the Cosmetics company, and the contract was signed voluntarily by all the members.
There's another factor in this lawsuit. SM is claiming that CJS violated the terms of the Temporary Contract Injunction, and claims that CJS signed a contract with another company (dual contract). JYJ fans and TVXQ fans argue about this endlessly, and I will talk about it in future posts.
I think the Injunction judgment granting CJS to continue their activities until the main lawsuit may actually come back and hurt CJS's case because there were some damaging evidences found against them after the injunction, and most importantly, Avex is on SM's side now. I am very curious to see what kind of evidences will be presented on the next trial session. If Avex owns a copy of JYJ's contract with C-Jes, which I think they have, that could really hurt JYJ's case. SM also requested at least one member of JYJ to testify, and if the judge allows it, then it will be really interesting to hear what he says.
This case is to void/validate the contract, not about judging its fairness. Judging the fairness is a big part of this lawsuit, but it's not everything. Otherwise there's no reason for the judge to allow other evidences besides the contract itself if you think about it.
Ok, so that about wraps up my posts regarding the contract.
Next, I will be posting about the cosmetics company.