Recently, SM Entertainment initiated legal proceedings against EXO-CBX members Chen, Baekhyun, and Xiumin, citing alleged breach of contract related to intellectual property (IP) fees.
The lawsuit claims that the trio has not fulfilled their obligation to pay SM Entertainment for the use of its assets, including music and other intellectual properties, for over six months.
In response to SM Entertainment's lawsuit, EXO-CBX has filed a countersuit. The group contests SM's claims, arguing that the terms of their agreement with SM Entertainment do not specify a clear obligation to pay IP usage fees, contrary to SM's assertions.
EXO-CBX (Chen, Baekhyun and Xiumin) announces they will reveal all details about SM Entertainment and file a lawsuit for unpaid settlements following SM's lawsuit against them.
— Pop Base (@PopBase) June 14, 2024
"We will prove, in court, that SM's payment system is wrong. We will also report the unfair exclusive… pic.twitter.com/J29d1JXO8a
The news has sparked widespread discussion among netizens, particularly on platforms like theqoo, where opinions vary widely.
Some express surprise and disappointment over the allegations, questioning the legality and ethics of not paying IP fees while using SM Entertainment's assets. Netizen comments include:
- "This case is getting messier by the day."
- "How can they use SM's IP without paying?"
- "SM should have taken action sooner if this was happening."
- "Both sides need to resolve this quickly."
EXO-CBX has responded to the controversy, asserting that they have not received a formal request from SM Entertainment regarding IP fees. They claim that they proposed a payment plan during a press conference, but SM Entertainment did not respond, leading to confusion over the current legal standoff.
EXO-CBX announces lawsuit against SM Entertainment.
— Kpop Charts (@kchartsmaster) June 14, 2024
— “We will file a compensation claim against SM for the settlement, which we have always questioned. Through this process, we will receive the accounting materials and settlement materials and assert our legitimate rights."… pic.twitter.com/kFrulNqWGS
In their statement, EXO-CBX remarked, "It's unfortunate that SM Entertainment has chosen to publicize claims of non-payment without addressing our proposal. We remain committed to resolving this matter through dialogue."
The ongoing legal battle between EXO-CBX and SM Entertainment raises questions about the future of their relationship. If unresolved, it could impact EXO-CBX's ability to use the group name and other assets associated with SM Entertainment, potentially affecting their careers and activities.
Meanwhile, EXO-CBX, consisting of Chen, Baekhyun, and Xiumin, are set to hold a press conference on June 10th, 2024, where they will accuse SM Entertainment of unfair treatment.
This follows a legal dispute where EXO-CBX terminated their contracts with SM due to alleged breaches of agreement. INB100, the new agency handling their activities, claims SM has disregarded negotiated terms and demanded a portion of their solo activities' revenue. The upcoming conference aims to expose SM's alleged misconduct.
For more K-Pop news and updates, keep your tabs open here at KpopStarz.
KpopStarz owns this article.
Written by Cassidy Jones.
