According to sources within the music industry, on June 16th, it was reported that INB100, the label representing EXO-CBX (Baekhyun, Chen, and Xiumin), failed to pay SM for the use of IPs, such as music and names, from January to June.
In reply, INB100 argued that their agreement did not include any mention of IP usage fees, and stated that SM had never requested them to pay such fees.
On the 14th, INB100 clarified that during the agreement signing in June of the previous year, they were granted permission to use the IPs without any mention of payment terms. Additionally, no request for IP usage fees was received from SM, making their current claim unreasonable. At the press conference, CBX reiterated their willingness to pay for IP usage and expressed frustration at not receiving a response from SM.
On the morning of June 16th, CBX announced their intention to file a lawsuit in order to seek settlements. This move is seen as their response to SM’s lawsuit against them, which aimed to enforce the terms of their contracts. INB100 commented, “Since SM initiated the legal action, we will fully disclose all relevant information, including the negotiations from last year, and actively participate in the proceedings.”The company also stated, “We intend to assert our rightful rights through this lawsuit and expose any incorrect details in SM’s settlement system.”
This marks the second instance of SM encountering conflict with EXO-CBX. In June of the previous year, CBX publicly addressed their concerns regarding SM’s unjust contracts and unclear settlements. After negotiations, an agreement was reached and CBX went on to establish their own independent label, INB100. As part of the agreement, SM agreed to continue supporting EXO’s group activities with 8 members, while allowing Chen, Baekhyun, and Xiumin to pursue individual activities under their own terms.
Despite the emergency press conference held by INB100 executives on the 10th of this month, including Chairman Cha Ga-won, where they accused SM of making unreasonable demands for music distribution fees, SM responded by announcing their intention to file a lawsuit against CBX. They claimed that the real issue at hand was the involvement of MC Mong and Chairman Cha Ga-won. However, INB100 quickly refuted these accusations and stated their determination to strongly respond to SM’s actions by pursuing both civil and criminal lawsuits.
On the 12th, SM filed a lawsuit against CBX, indicating that the ongoing legal dispute between the two parties would result in a prolonged conflict. This has also resulted in the indefinite postponement of EXO’s planned group album release for this winter.
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