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whitefoxgirl · 7 years ago

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“Slave” Contracts Explained.

So after some debate of whether to do this or not… I decided to do it. I am a business major, particularly in management, so if any of this is too technical for you, I apologize in advance. Everything I talk about is business so it might be boring… I would also like to point out that this is United States and Puerto Rico business and commercial law, and NOT South Korea, every country has different commercial and business law, needless to say, all thought they’re may or may not be completely different we can have this as a foundation. Also, I’m adding gifs to make this more interesting and not plain looking and boring… So let’s start.

Let’s start with the definition of a contract according to the law. A contract is a voluntary agreement between two or more people that imposes one or more obligations that are enforceable before the law. The contract cannot be contrary to law, moral, public order or imposible to complete.

Trainee contracts? Why are they important? (SOURCE)

So, before anything, before doing your own KPOP Group, you have to train them for a certain amount of time to get “perfection”. This is where the TRAINEE CONTRACT comes in, these contracts only last from 2 to 4 years, and have to be renewed if you want to continue training and haven’t debuted. By signing this, you’re agreeing to the company training you to be an idol, and most of the time, trainees drop out of school just to complete the obligations the contract is stating. Most of these training lessons lasts 13 hours and they go from 10 A.M to 10 P.M not including extra practices. In the contract (I’m assuming), it states, that this treatment is temporary, and the company has to gives the trainees a dorm, food, and lessons. If you think all of this is free, you are sadly mistaken. It has been started by multiple idols, but the most recent one was I.B.I’s Sohee. She was explaining about her time as a trainee in her agency and all the rough time and harassment she was going through and I sympathized with that… But what really stood out for me was the fact that she basically complained about having to work for a Korean barbecue restaurant owned by the CEO as a part-time for 6 months. She said (and I’m not quoting because it was resumed) “The CEO also made the trainees work part-time at his Korean barbecue restaurant for 6 months, and led them to believe that their work would help fund their debut”. Well…

Did you think this was free? The training services they give you HAVE to be paid for, and it should be stated in the contract that you will pay for the training services given once you debut. A lot of big companies take 10% or more of your earnings to pay for that debt you imposed on yourself. One trainee costs the company about 30 million won (approximately $27,000) per month, and if you think that I will not get my money back in one way or another, you’re sadly mistaken. Let’s not forget the fact that only 10% of the trainees actually debut, so if I have 30 trainees, only 3 will debut. What this CEO did was basically getting you out of your debt, so you don’t have to give any of your earnings later on, when you actually debut. Fucking smart… I’d tell you that. I bet, EXO is still paying their trainee debt. D.O alone as a debt of $648,000. That my friend, is a lot of money. These contracts are important because they give me security. Security of what? That my child star will not run off with some other company simply because they chased them in the streets wink win). They are my product and I will not share nor show my product until I can 100% say, that they are ready for this.

EXO’s Kris and SNSD’s Jessica. (SOURCE)

There were rumors back in 2012 about SM and their plans for EXO, SNSD, & F(x). (Whether they are true or not is up to debate, but I think it’s true. Half of the things listed here have already happened. ) One of the things that caught my eyes was “Kris and Jessica really have a good relationship. SM actually has a plan to them.” and then it was later revealed that the “plan” was to get them to date. If they saw this as something they wouldn’t find right, or immoral to them, they have every right to terminate the contract. Which they did, thankfully, and it would be totally legal for them to walk up to court and say “I cannot do this contract any longer because it’s against my moral code”. After that the court is to decide whether the contract should be terminated or not. Should it be terminated? 100% yes, if they feel uncomfortable and they feel like it’s against their moral code, it should be. As mentioned before, a contract cannot be contrary to the one signing the contract.

EXO v. SM (SOURCES 1, 2, 3)

I can smell fans coming for me… Oh, well!

Though I can’t talk about it much since there isn’t much detail from both parties, but hopefully with the sources I have I can make you understand a little bit better of “why?” and “how?”. Let’s start with Kris. “According to several reports, Kris’ side has claimed that the idol is being treated as an object rather than being respected as an artist. They also mentioned that SM one-sidedly decided on the schedules, not giving thought to Kris’s opinion or his health condition. As they believe that SM is restricting Kris from his basic human right to freedom and his choices career wise, the contract should be nullified”. This was the claims that all Kris, Luhan, but not Tao. Let’s take this piece by piece before we get to the settlements. They said they were being treated as objects and not artists. Well… Honey… First of all, I don’t think you understand how a company works. I am paying you for your talents, whether it’s singing, dancing, acting, but I am paying you for these services, for ME to make money to pay YOU. To pay for those albums, those promotions, those photo shoots, if you desire those plastic surgeries, those clothes, that dorm, that phone… The list goes on. Second of all, I don’t think you understand that I, as a company, am selling you to these teenagers, as a lover, older brother, and pretty boy. To me, as a company, you ARE an object, a product, and I am selling you to these people as the perfect boy with no character flaws. I do agree that SM should let them have a say in their creative side, but let’s see Kris’ new stuff, shall we?

“July” was written by Karl Rubin, Curtis, August Grant, Rook Monroe, Kevin Shin… and Kris, produced by Karl Rubin… and Kris.

Ok… What about “Juice”, produced by R!O, Kamo… & Kris.

It seems to me, Kris, that you, even though you are a producer, you need help. A song producer is not cheap, ok? And a song writer.. please… If you think that’s cheap too, you’re living on cloud 9. Meanwhile, we have Chen, Chanyeol and Lay writing “Promise” and Lay producing the song. I don’t need to pay them extra for doing so, I’m already paying them! So of course, I’m not gonna help you get a song out, if you haven’t prove to me that you’re determined to make an album and bring all the money I gave you to make that album.

This, does not apply to Luhan that much, he self-produced his album “Xplore” so, I would have given that opportunity to Luhan more than Kris. But again, prove to me that you’re worth it, that you are worth me spending my money, making a song (or album), promoting that song (or album), and making a video for that song. “SM one-sidedly decided on the schedules, not giving thought to Kris’s opinion or his health condition. As they believe that SM is restricting Kris from his basic human right to freedom and his choices career wise .” ��Can I half-agree to something? I am, so… Bleh. I do agree that the manager should decide on what they’re doing throughout the day. If we let the boys decide… It would be madness… They would be preforming in the same places every time. But, even as a company I have to acknowledge that you are human, not just a money making machine. I, as a company, will explote you… to an extend. If I see you dying, I can’t ask you to sing at the Tokyo Dome… That’s just plain stupid.

SM can make irrationals decisions as well. We had them “file lawsuits against Kris and companies that hired him”. This… Is the stupidest thing they could ever do. They said “Our contract with Kris remains in effect until the final ruling is made by the court.”

What kind of fantasy do you live in SM? Once I take the contract to the court and file a lawsuit, whether is to terminate it or wanting the law to make the person fulfill the obligations they agreed to, but then decided not to follow, the contract is “on hold”. Meaning, I can do whatever I want, even if I’m violating the contract. This does have a consequence. Let’s say that they came to an agreement, like B.A.P did with TS entertainment, this would’ve been a problem with the contract if it stated that they cannot sign contracts with any other company without consulting and come to an agreement with the company and they CAN and possibly would sue you for violating the contract. Was this “unethical” in Kris’ behave like SM said? 100%.. But let’s say you guys made him pay for damages brought to the company for his acts (which they should have), like they did to Tao, where is he gonna get that money? His booty hole? Not to mention the court usually gives them a certain amount of days to pay. So… How is he gonna pay thousands of dollars in 10 days? That right there is telling me that you guys want him to go to jail for not following court law. Then they ask Luhan for 10% of his profits until 2019…. Again… What kind of fantasy world do you live in? Unless it’s for damage suffered, negligence and fault acts, don’t ask for money. It is clear to me, that this 10% of what you’re receiving from Luhan are not for these stuff, it’s just you being greedy, because… If so… Why didn’t you want the same for Kris? You’ll be receiving 20% of profits and Kris is way more popular in China than Luhan, so…

JYJ Contract (SOURCE) (This is too much so, read the article then come back if you want to)

This is gonna start some wild fire. SM did well and asked THEM for money, for the damages suffered, which they did and they should, TVXQ was the biggest K-POP group in Korea at the time, so their stock most have went down in a matter of seconds. Is like EXO now, but bigger. JYJ did an act of negligence and/or of fault towards the contract. This act of negligence and/or fault is in which an act or omission causes damage to the other, intervening fault or negligence, therefore they are obligated to repaired the damaged cause. They lost more, including money, comercial deals amongst other stuff (that was the damage) and they are asking for money (an obligation to repair the damage). The money JYJ is asking for is invalid. They’re asking for money including from 2009, the same year the contract was being in court for, therefore, SM doesn’t have to pay. Of course all of this is settled, but I want to point out what we call in business “Quantum de Prueba”, it references to a grade, quantity or proofs necessary to establish a fact. With these proofs one can determine whether the case can be processed through a civil, criminal or simply administrative court and law. It seems to me SM gave them the receipts including the contract, damage suffered and how the boys neglected the contract in some points while JYJ was just demanding stuff with only words to back up their evidence. If I was the judge.. Honey… I need proof of everything you’re accusing SM of, because SM gave the receipts, where are YOUR receipts JYJ?

Do slave contracts exists? Why it was important for them to read before signing the contract?

To see what a slave contact is, we have to look at the definition of a slave. Slave: a person who is the property of and wholly subject to another; a bond servant. A person entirely under the domination of some influence or person. Usually slaves have no benefits, no rights and no say in what they do, say, think or live. Whenever I see the debate of whether these slave contracts between the company and the idols are real or not, I just shake my head thinking, “these fans really thought they sat down and looked over the contract 110 times before signing it?”. Let’s be honest, none of us do. And we sign contracts every single day on social media. What do you think “terms of service” is? Is a contract you have an obligation to. I want to make an example, when you registered on Tumblr, I bet you didn’t know they were funny ass lines there because you just clicked the check box and called it a day. Some of them are:

Please don’t use Tumblr’s Upload Video Feature to host sexually explicit videos. We’re not in the business of profiting from adult-oriented videos and hosting this stuff is fucking expensive. You can use services like XHamster to host those instead.

Don’t post private photos of your ex’s junk (no matter how attractive).

If you’re younger than 13, don’t use Tumblr. Ask your parents for an Xbox or try books.

If you want to ridicule or parody a public figure (and who doesn’t?) don’t try to trick readers into thinking you are actually that public figure.

If you break these Terms of Services, tumblr can sue you because you basically signed a contract and violated it. So if you did this for these services, imagine these idols that wanted their dreams to come true.

Suga from BTS said that Bang PD gave him a view of what was gonna be like being in BTS, saying that is was gonna be like 1tyme and that the only thing that he needed to do is rap and come up with music. He painted this world to Suga, saying it was black with gold flakes but it turned out to be pink with white stripes, not what Suga had expected, and if BANG PD had told him the truth, do you think he would’ve signed? I don’t think so. I, as a company, will make you see what I see, even if I have to lie, this is called… Marketing.

The general rule for contracts is that the debtor (the one that signs the contract) has to comply with their obligations. The only time this is overruled is when the law says otherwise or with an agreement with the creditor (the one that made the contract). If the debtor doesn’t pay by the time assigned, or is paid later on their duty is to pay the imposes with money. The compensation will consist of the debt plus interests in which they have agreed on, provided that they are not usurious interests. Which is why the trainee contracts are the way they are and the idol pays the debt even after they debuted. For a debt to be enforced by law they have to follow these for perceptions:

“What are we paying for?” or “What are my obligations?”

“Who is the one that has to do the payment (or give the services) and to whom do I give them to?”

“Where should I give the payment (or give the services?)”

“When should I give the payment (or give the services?)”

I can answer those, and I bet you can too. The first one. As a trainee, you provide me with your talents so I can either improve them or add more talents, so I can get you where you want to be. As an idol, your obligation is to bring me money while providing me with your services; you will be paying for the debt you imposed me and yourself while I was training you giving you a dorm, food, training with professionals. The second one. You, the idol, are giving me your services (singing, dancing, acting, producing… etc.) to me, the company. The third one. You are giving me the services by singing in concerts, touring, making music videos, promoting, photo shoots… etc. The last one. You will give me the services according to the schedule provided by the manager of the group. If you oppose to anything on the contract you CAN talk to the person providing you the contract asking for changes before you sign, and if they agree to it, you’re good to sign the contract. BUT! This is VERY important, if you asked for changes, and they agreed and they said, “I’ll print the new contract tomorrow, sign that one first, we know the terms we are in…” blah blah blah. You shouldn’t sign it, because if you do… Well then guess what, you’re fucked. Unless you have proof of the creditor and you making these agreements and them saying the stuff they said, no court will believe you unless they come clean. NEVER TRUST ANYONE!!! SPECIALLY WHEN SIGNING CONTRACTS!!!!

The obligations they signed for & the benefits of the idols and companies.

Is pretty obvious that these obligations can be very extreme, we’ve seen it multiple times, but there’s different types of obligations like:

Suspensive obligations: which that the compliment of the obligation will depend on an event, whether it’s past or future (the compliment of the obligation starts immediately)

Resolution obligations: which the end of the obligation will depend on an event, whether it’s past or future (the compliment of the obligation finishes immediately)

Term obligations can be : 1. Determined: that it WILL happen, without a doubt (i.e when February 23 comes). 2. Undetermined: that we know it will happen, but never know when (i.e the rain, death). 3. Ordinary: that it should be complied AFTER the deadline. Of course, it may be subject to delayed. (i.e. the debt should be paid on the 15 but I paid the 18)

These are just some, but I think it’s pretty save to say that the idols have an ordinary obligation, since they are paying their trainee services AFTER the deadline. They have another obligation, which is the suspensive one. In a contract, I’m assuming, it says that they start working as idols as soon as the contract is signed. Meaning, you signed the contract… NOW SING! DANCE! MAKE ME MONEY!

The general rule is that the one giving the services can pick whatever he wants to do and establish it, but it has to be written clearly in contract. The only times the obligation come to an end is when the contract expires, when an incidental event happens, is the debtor’s fault, in that case they have to pay with the worth of what was lost (i.e, SM asking JYJ money for the lost of it because they failed to give the services), or when it was notified by the creditor (the one that made the contract) that their services are no longer needed.

Keep in mind that a creditor can be a debtor too. This is why these companies have to be careful with how they treat their idols, and vise versa. The company is a debtor to these idols becase they have to pay them for their services, but they’re also a creditor because they’re taking money for the training services. When the idol is done paying the trainee debt, then the company will become the debtor. Making them eligible for demanding more services (but it has to be stated in the contract, otherwise they can’t demand shit). The idols are both because they have giving these companies their services, and they CAN demand for better work conditions since they are a creditor. When the companies decline to give them what the contract had stated, they’re required to go to court and file a lawsuit against the company for act of negligence. They don’t have to say “The company broke my leg and I wanna file a lawsuit”. They only have to go with the contract and say “I have a contract with X entertainment and it’s stated that I will get 8 hours of sleep in the contract but I only get 2. They’re neglecting the contract. I wanna file a lawsuit”. Again, the idol is both giving services and receiving services, so when the company is treating them like shit… well… then guess what… YOU were the one giving ME money for the stuff that I do, I am both, so I can demand the stuff I want before singing this piece of paper. Also, a lot of the reasons why these idols wants to terminate their contracts is because there’s no specific time limit for each day. For example, in the contract it’s never stated “you’ll be working from 9 A.M to 5 P.M”. This brings a huge problem for the idols because they ever really rest while providing these services to the company, and it’s been proven that the lack of sleep (or too much sleep) can lead to depression or suicidal thoughts. That’s why a lot of actors/actresses and singers become this way. Not only are they in the public eye 24/7, being judged for the stupidest, most normal thing, like dating, they lack of sleep because of promotions and extra work.

Believe it or not, the idols HAVE benefits, and we see these benefits when they’re wearing designer clothes, having the nicest cars, taken to the hospital (in most cases the company pays the hospital bill)… etc. And we can see them clearly in the income/profit divisions.

Source

SM:

Contract years: 7 Physical sales: Company 95%, Artist 5% Physical sales renewed: Company 90%, Artist 10% Events: Company 60%, Artist 40% Overseas promotions: Company 30%, Artist 70% Note: Divides income even if they didn’t reach break-even point

YG Contract years: 5 Physical sales: Company 50%, Artist 50% Physical sales renewed: Company 30%, Artist 70% Events: Company 40%, Artist 60% Overseas promotions: Company 50%, Artist 50% Note: Divides income even if they didn’t reach break-even point

JYP Contract years: 7 Physical sales: Company 50%, Artist 50% Physical sales renewed: Company 50%, Artist 50% Events: Company 60%, Artist 40% Overseas promotions: Company 50%, Artist 50% Note: Divides income even if they didn’t reach break-even point

FNC Contract years: 7 Physical sales: Company 70%, Artist 30% Physical sales renewed: Company 50%, Artist 50% Events: Company 60%, Artist 40% Overseas promotions: Company 50%, Artist 50% Note: Doesn’t divide income if they didn’t reach break-even point DSP Contract years: 5 Physical sales: Company 50%, Artist 50% Physical sales renewed: Company 50%, Artist 50% Events: Company 50%, Artist (50% Overseas promotions: Company 50%, Artist 50% Note: Divides income even if they didn’t reach break-even point

I’m just gonna leave this here… Now… Should they follow the contract (the company). Of course, 100%, they’re the ones that created it and the idols ARE following their terms. It seems to me that these companies *cough* *cough* SM Entertainment *cough* *cough* is not even following their OWN terms, and not following the law like they should, making the idols most of the time go against their morals and sometimes make these contracts imposible to complete. This is why they get sued, it’s not even about them (the idols) wanting more money, is about you as a company not giving them any rights as a human. I mean, sure, they’re your object, the way you make money, your product. But let me tell you something, if doll Barbie could talk she would be SCREAMING at Mattel for making her hang out with 3 year olds that pull her hair, throw her off buildings, paint on her face… etc and Mattel would give the same answer these companies give the idols. “You are under contract, we gave you the contract for you to revise it before signing it, and we stressed that this was a big decision for YOUR future. Therefore comply with the obligation YOU agreed on until the contract expires and if you’re still dissatisfied with how we work… Well, simply don’t renew a contract.” But…

Again… This is MY knowledge of how businesses work and how it should work and I’m giving MY personal opinions with MY knowledge of business administration and management along with the information provided for us. Take it with a grain of salt and tell me what you guys think.

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