SM Entertainment and JYJ have failed to reach an agreement on the issues surrounding the members' TVXQ contract.

The trial between SM Entertainment and the members of JYJ took place on August 10 at 4PM KST in Seoul Central District Court. SM Entertainment's representative Kim Young Min, along with lawyers from both sides, were present to debate the issue. The members of JYJ were not present for this trial.

In the 1-hour-30-minute trial, each side expressed their sentiments to the court, and afterwards, both sides expressed their opinions to each other. This day, Representative Kim left the meeting to have a conversation with a lawyer in the waiting room. He met with reporters during the mediation and stated, "The court is still in trial so nothing can be said."

SM Entertainment and JYJ have been in trial since last May, going through a total of six hearings to reconcile their differences thus far. However, at the end of last year, both sides failed to reach an agreement and hearings have resumed. In May, both sides expressed their points during the hearing and waited for an official verdict, but the court advised a mutual adjustment so another trial date was issued.

However, the two sides have failed to meet a mutual agreement once again. JYJ's lawyer told Star News, "The difference in opinion between the two sides is too large. An agreement could not be reached so it was decided that another trial will take place around September 13th."

The lawyer continued, "SM Entertainment's side is to 'forget about the past', and our side is to settle all the accounts and issues in court. Both sides diverge in opinion, but the court is encouraging a voluntary agreement or a mediation until a decision has been made."

After three years of both sides battling for an agreement, the chances of the court making the final decision have risen. When the SM Entertainment representatives exited the court, they answered the reporters' questions saying, "There is nothing for us to say yet."

In 2009, JYJ stated, "[Please terminate the effects of our unreasonable exclusive contracts]," and filed a case. As the court accepted this, SM Entertainment filed a claim for compensation for damages in April of 2010. In February, the Seoul Central District Court dismissed both of SM Entertainment's injunctions against JYJ.

After this recent hearing, it's been confirmed that the exclusive contracts signed by both sides have been nullified, and that the decision to secure the individual entertainment activities of the JYJ members has been upheld.

Source & Image: Star News via Nate