EXO-CBX Claps Back Against Reports About Not Paying SM’s IP Fees For Six Months

Recently, SM Entertainment officially filed a lawsuit against EXO-CBX members Chen, Baekhyun, and Xiumin.

The lawsuit refers to the terms of the agreement between SM Entertainment and the three members, requesting that the three members follow the previously agreed-upon conditions.

In response, EXO-CBX has also filed a lawsuit against SM.

EXO-CBX Files Lawsuit Against SM For Unfair Profit Distribution

According to the music industry, it has been confirmed that EXO-CBX has not paid SM any royalties for IP, including music, assets, etc., for over six months.

Both parties initially agreed to pay 10% of EXO-CBX’s sales to SM quarterly, including the IP usage fees. At the press conference, EXO-CBX proposed paying usage fees for SM’s assets in exchange for 10% sales, but SM ignored the proposal.

Regardless of either side, EXO-CBX must pay the IP usage fees to SM, which could be another point of conflict in the ongoing dispute. If this isn’t resolved, EXO-CBX may not be able to use the group name and other assets produced by SM.

Netizens were baffled that EXO-CBX were not paying the IP fees per the contract and yet using all of SM’s assets.

“This case is going to get even bigger.”
“Isn’t the IP SM’s assets? So basically they’re using another company’s illegally.”
“Wow, SM really let all this slide and yet they’re doing all this.”
“SM has already tried to negotiate by including the IP fees in the 10% sales fee.”
“So they are trying to just pay the IP fees because 10% is too much and they weren’t paying it before anyway.”
“Just pay what you need to pay; what’s wrong with them.”
“If you don’t want to pay, leave EXO.”
“So they didn’t even pay and still did performances?”

“Wow they really didn’t know?”
“Wow and that’s the amount including the IP fees.”
“Wait, but didn’t they sing all of EXO’s songs at the solo concert.”
“Why did they even renew contracts then.”
“Wow they didn’t pay the IP fees for six months and even went on tour. Shouldn’t SM have been the ones to hold an emergency press conference?”
“It looks like SM let a lot of things slide since they have a history together. But now is not the time for this, SM must take strong legal action.”

However, not long after EXO-CBX released a statement regarding the IP fees.

In the agreement signed last June, they allowed us to use the IP, and there was no mention of how much we needed to pay. We have not received a request from SM to pay the IP usage fee, so it doesn’t make sense to claim that we didn’t pay the IP fee. We proposed paying the IP fee at the press conference first, but SM has not responded to our proposal. It’s unfortunate to see them using media play about not paying the IP fee when they have not responded to us.

— INB100

What are your thoughts on this?

SM Entertainment Claims EXO-CBX Just Wants To Take Advantage Of EXO’s Name And Plans Legal Action

Source: theqoo

EXO-CBX Claps Back Against Reports About Not Paying SM’s IP Fees For Six Months

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