Kpop Review

SM Entertainment in Hot Water as EXO-CBX Fires Back on IP Fee Dispute

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.

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.

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.

Most Views