EXO’s Group Comeback Plan Becomes Uncertain Amid SM & EXO-CBX’s Prolonged Legal Battle
The fight between SM and EXO-CBX is expected to continue for a long time as they failed to narrow differences
According to reports in the music industry on June 16th, INB100, the label of EXO-CBX (Baekhyun, Chen and Xiumin), did not pay SM the fees of using IPs, including music and names, from January to June.
In response, INB100 countered that IP usage fees were not specified in their agreement, claiming that SM had never asked them to pay IP usage fees.
Earlier on the 14th, INB100 stated, “While signing the agreement in June last year, we were allowed to use the IPs and there was no mention of how much we would have to pay for it. We did not receive any request to pay IP usage fees from SM, so the claim is unreasonable”. At their press conference, CBX’s side emphasized that they even expressed the intention to pay for IP usage to SM first and complained about not receiving any response from SM.
On the morning of June 16th, CBX also stated that they would file a lawsuit to claim settlements. This action is interpreted as their response to SM’s lawsuit against them to request the implementation of contracts. INB100 said, “As SM filed the lawsuit first, we will disclose everything, including last year’s negotiation process, and actively engage in the case”, adding “We plan to claim our legitimate rights through this lawsuit and revealed incorrect details in SM’s settlement system”.
This is the second time SM had a conflict with EXO-CBX. In June last year, CBX exposed SM’s unfair contracts and unclear settlements. Later, both sides reached an agreement, then CBX announced the establishment of their independent label INB100. At that time, SM agreed to support EXO’s group activities with 8 members while Chen, Baekhyun and Xiumin could carry out individual activities under their agreement.
However, on the 10th of this month INB100 executives, including Chairman Cha Ga-won, held an emergency press conference to accuse SM of making unreasonable demands regarding music distribution fees. In response, SM announced that they would file a lawsuit against CBX, claiming that the essence of the case was the tempering of MC Mong and Chairman Cha Ga-won. INB100 later refuted the tempering accusation and announced their plans to respond to SM strongly by seeking civil and criminal lawsuits.
SM officially sued CBX on the 12th, confirming that the conflict between them would be prolonged due to legal battles. As such, the plan for EXO to release an album as a group scheduled for this winter has also been halted indefinitely.
