Block B is trapped
2013-06-07 07:23 pmBlock B loses case against Stardom Entertainment
Block B has lost their lawsuit against Stardom Entertainment.
The boys had filed an injunction against their exclusive contract back in January. Both Block B and Stardom Entertainment had gone back and forth, with both parties claiming what the other said was false.
However, the Seoul Central Court has dismissed their request, explaining, "From the evidence provided so far, it is difficult to claim that the label purposely did not pay Block B. It is also difficult to say that the label did not provide proper facilities such as studios and dorms, and it is also difficult to say that they did not provide education and guidance. From written records, it cannot be said that Stardom Entertainment violated their management obligations."
The court added, "There is a possibility that the musical income of 430,000,000 KRW (approximately $385,000 USD) and the event income of 5,000,000 KRW (approximately $4,500 USD) was not properly taken care of. However, from just the evidence provided, it cannot be said that the label purposely kept the money from the members."
Finally, the court said, "The label has promised to pay the members the part that they have not been paid. There is a big probability that the unpaid fees will be paid. It is difficult to say that the exclusive contract has been nullified because of a violation of management obligations."
Block B releases official statement + will not be working with Stardom Entertainment again
After Block B's case in filing for a nullification for their contract was dismissed by the court, the boys have released an official statement.
The full statement reads:
"First, we want to tell all the fans that love and support Block B that we are very sorry.
The court made their decision even though they accepted that about 430,000,000 KRW (approximately $385,000 USD) from the musical income and a part of the event income were left out. We believe this is because they wanted us to follow an official ruling that was decided after additional battles on the original lawsuit and thinking deeply about it.
For example, even though evidence was provided about the management contract on Japan's Bauhaus, they have mistakenly stated that it is difficult to determine if they had violated their management obligation because the contract was not submitted. There are other various decisions that the members cannot accept. One such example is saying that unlike the basic royalties paid in advance, the royalties paid in advance by LOEN Entertainment cannot be seen as income that should be paid to the members.
From this, we will be calmly fighting the original case to confirm the legitimacy of the contract nullification. We will be demanding responsibility from Stardom Entertainment of the violation of management obligation and violating the exclusive contract.
Also, the court decided, "The Block B members have fought over the status of the contract nullification while they independently promoted, so there is also a possibility that these promotions can be checked for legitimacy later."
This is because if the Block B members are blocked from promoting independently, it is violating our lawful right to work and our general right to freedom of action.
The Block B members have no intention to promote under Stardom Entertainment, so they will be preparing independent promotions. If the legitimacy of the contract nullification is not acknowledged in the original case, then we will be taking responsibility for the due damages.
We want to tell you again that we apologize for worrying our fans. The Block B members will be giving back to the fans' worries, love, and support by showing a more mature side."
Sources akp (1 , 2) and nate (1 , 2 , 3 )

sigh
Block B has lost their lawsuit against Stardom Entertainment.
The boys had filed an injunction against their exclusive contract back in January. Both Block B and Stardom Entertainment had gone back and forth, with both parties claiming what the other said was false.
However, the Seoul Central Court has dismissed their request, explaining, "From the evidence provided so far, it is difficult to claim that the label purposely did not pay Block B. It is also difficult to say that the label did not provide proper facilities such as studios and dorms, and it is also difficult to say that they did not provide education and guidance. From written records, it cannot be said that Stardom Entertainment violated their management obligations."
The court added, "There is a possibility that the musical income of 430,000,000 KRW (approximately $385,000 USD) and the event income of 5,000,000 KRW (approximately $4,500 USD) was not properly taken care of. However, from just the evidence provided, it cannot be said that the label purposely kept the money from the members."
Finally, the court said, "The label has promised to pay the members the part that they have not been paid. There is a big probability that the unpaid fees will be paid. It is difficult to say that the exclusive contract has been nullified because of a violation of management obligations."
Block B releases official statement + will not be working with Stardom Entertainment again
After Block B's case in filing for a nullification for their contract was dismissed by the court, the boys have released an official statement.
The full statement reads:
"First, we want to tell all the fans that love and support Block B that we are very sorry.
The court made their decision even though they accepted that about 430,000,000 KRW (approximately $385,000 USD) from the musical income and a part of the event income were left out. We believe this is because they wanted us to follow an official ruling that was decided after additional battles on the original lawsuit and thinking deeply about it.
For example, even though evidence was provided about the management contract on Japan's Bauhaus, they have mistakenly stated that it is difficult to determine if they had violated their management obligation because the contract was not submitted. There are other various decisions that the members cannot accept. One such example is saying that unlike the basic royalties paid in advance, the royalties paid in advance by LOEN Entertainment cannot be seen as income that should be paid to the members.
From this, we will be calmly fighting the original case to confirm the legitimacy of the contract nullification. We will be demanding responsibility from Stardom Entertainment of the violation of management obligation and violating the exclusive contract.
Also, the court decided, "The Block B members have fought over the status of the contract nullification while they independently promoted, so there is also a possibility that these promotions can be checked for legitimacy later."
This is because if the Block B members are blocked from promoting independently, it is violating our lawful right to work and our general right to freedom of action.
The Block B members have no intention to promote under Stardom Entertainment, so they will be preparing independent promotions. If the legitimacy of the contract nullification is not acknowledged in the original case, then we will be taking responsibility for the due damages.
We want to tell you again that we apologize for worrying our fans. The Block B members will be giving back to the fans' worries, love, and support by showing a more mature side."
Sources akp (1 , 2) and nate (1 , 2 , 3 )

sigh
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Date: 2013-06-07 07:29 pm (UTC)I really thought they had a good legal team and could set an example and precedent for other groups stuck in crap contracts.
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Date: 2013-06-07 07:49 pm (UTC)no subject
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Date: 2013-06-07 07:32 pm (UTC)no subject
Date: 2013-06-07 07:32 pm (UTC)So what I got out of this is that nobody kept records of, like, anything, so they can't do anything, but that stardom do owe the boys money?
Ugh, this is confusing ლ(-_-ლ)
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Date: 2013-06-07 08:55 pm (UTC)no subject
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Date: 2013-06-07 07:36 pm (UTC)no subject
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Date: 2013-06-07 07:43 pm (UTC)no subject
Date: 2013-06-07 07:53 pm (UTC)So glad Block B aren't standing for it. They deserve better than this.
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Date: 2013-06-07 07:56 pm (UTC)no subject
Date: 2013-06-08 01:03 am (UTC)no subject
Date: 2013-06-07 07:54 pm (UTC)no subject
Date: 2013-06-07 08:53 pm (UTC)no subject
Date: 2013-06-07 08:57 pm (UTC)no subject
Date: 2013-06-07 08:57 pm (UTC)JYJ were an exception, everyone else would've lost the case.
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Date: 2013-06-08 12:35 am (UTC)no subject
Date: 2013-06-08 02:14 pm (UTC)Although I know where she comes from -- it's easier to favor the company in a case like this with a nugu group than it is with people like DBSK, Super Junior and SS501 members, especially if the company is as chaotic keeping track of everything and Block B's seem to be? From what I am understanding, at least :/ which is not much.
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Date: 2013-06-07 10:27 pm (UTC)The only thing more disgusting were the netizen comments. Those guys are scum.
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Date: 2013-06-07 10:50 pm (UTC)They have a performance schedule on Zico's birthday, does this mean they're gonna be managing everything themselves? :(
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Date: 2013-06-07 11:01 pm (UTC)then the 2nd news released....and I like LOL-ed, coz thats is Block B that I knew kk
promoting independently is hard,,,but I really hope they do well,,, /pray
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Date: 2013-06-07 11:34 pm (UTC)no subject
Date: 2013-06-08 12:09 am (UTC)happy tribe entno subject
Date: 2013-06-08 12:36 am (UTC)no subject
Date: 2013-06-08 02:23 am (UTC)no subject
Date: 2013-06-08 03:02 am (UTC)no subject
Date: 2013-06-08 05:53 am (UTC)"There is a possibility that the musical income of 430,000,000 KRW (approximately $385,000 USD) and the event income of 5,000,000 KRW (approximately $4,500 USD) was not properly taken care of. However, from just the evidence provided, it cannot be said that the label purposely kept the money from the members."
This part reads to me like Stardom owed them money but it wasn't ~intentional and for some reason the court thinks that's a good enough reason to rule in Stardom's favour? How does one unintentionally withhold payment.
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Date: 2013-06-11 01:35 am (UTC)no subject
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Date: 2013-06-10 12:38 pm (UTC)no subject
Date: 2013-06-11 01:34 am (UTC)this is why teenagers shouldn't sign contracts, tbh