[TRANS] SM Entertainment and the KPCAIC caught red-handed in prohibiting JYJ's activities
On July 24th, the Fair Trade Commission (hereafter FTC) revealed that they have ordered SM Entertainment and the Korea Pop Culture and Arts Industry Coalition (hereafter KPCAIC), who have been obstructing JYJ's broadcast activities, to cease their obstructive actions.
The FTC found that SM and the KPCAIC have worked together to request business' in the industry to prohibit JYJ's appearances on broadcast programming and musical distribution after JYJ, who were active as members of TVXQ, formed in October, 2010.
**The KPCAIC and SM collaborated in November, 2010, to send documents requesting that JYJ be prohibited from appearing on public broadcast and engaging in music distribution. Including the music distribution company Warner Music Korea, the documents were sent to 9 broadcast stations, 11 music distributions, and 5 online music service companies, making that 26 companies in total.**
The documents stated that JYJ "signed with another company (ie: having a double contract)" and other unconfirmed speculations that SM unilaterally relayed. SM one-sidedly warned in the documents that having JYJ appear on their broadcasts and helping JYJ distribute their music can bring about legal issues.
JYJ sold 300,000 copies of their first album and achieved great success, but after the KPCAIC sent the aforementioned documents, JYJ faced immense obstacles promoting as singers domestically, not being able to appear on music and variety programming and left out on music rankings for music shows.
Finding that SM and the KPCAIC obstructed the activities of JYJ, the FTC said that they have broken fair trade legislations and ordered SM and the KPCAIC to cease their actions.
The KPCAIC was ordered to relay this order to the 26 companies they pressured to prohibit JYJ as well as the 12 companies that comprise of the KPCAIC.
In July of 2009, JYJ's three members, who were active as members of TVXQ, stated that their contract was unfair and requested to void the contract with SM Entertainment, commencing a long legal battle.
After numerous legal proceedings, the lawsuit ended with mediation being accepted by both sides in November, 2012.
A representative from the FTC stated, "The unfair agreement and actions of the entertainment companies proved to be a social problem, but regardless personal opinions of artists and demands of the public, entertainment companies have been dictatorial about management system. " and "We anticipate that the happenings of this event will serve as a warning to similar unfair practices that may appear in the future."