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

SM Entertainment recently filed a lawsuit against EXO-CBX members Chen, Baekhyun, and Xiumin, claiming that they had violated their contract by not paying intellectual property (IP) fees.

The lawsuit alleges that the trio has failed to meet their responsibility of paying SM Entertainment for the use of its assets, such as music and other intellectual properties, for a period of more than six months.

EXO-CBX has responded to SM Entertainment’s lawsuit by filing a countersuit. The group is disputing SM’s allegations and stating that their contract with SM Entertainment does not explicitly state the need for them to pay IP usage fees, which contradicts SM’s claims.

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.”We will prove, in court, that SM’s payment system is wrong. We will also report the unfair exclusive… pic.twitter.com/J29d1JXO8a

— Pop Base (@PopBase) June 14, 2024

The news has initiated extensive conversations among online users, especially on platforms such as theqoo, where there is a diverse range of opinions.

Many are expressing shock and dismay regarding the accusations, raising concerns about the legality and morality of using SM Entertainment’s assets without paying IP fees. Netizens have shared their thoughts, with some commenting:

“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.”

Despite the ongoing controversy, EXO-CBX maintains that they have not officially been approached by SM Entertainment regarding IP fees. They state that they presented a suggested payment arrangement during a press conference, but have not received a response from SM Entertainment, causing confusion surrounding the current legal dispute.

EXO-CBX announces lawsuit against SM Entertainment.— “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

— Kpop Charts (@kchartsmaster) June 14, 2024

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 dispute between EXO-CBX and SM Entertainment has sparked concerns about the status of their partnership. If left unresolved, it could potentially hinder EXO-CBX’s usage of the group name and other assets linked to SM Entertainment, potentially hindering their professional endeavors and engagements.

At the same time, Chen, Baekhyun, and Xiumin, collectively known as EXO-CBX, have scheduled a press conference for June 10th, 2024, during which they will speak out against SM Entertainment for alleged mistreatment.

After a legal dispute, EXO-CBX terminated their contracts with SM on the grounds of alleged breaches of agreement. Their new agency, INB100, has accused SM of disregarding previously negotiated terms and attempting to claim a portion of the group’s solo activities’ revenue. The upcoming conference is intended to highlight SM’s alleged misconduct.