EXO-CBX IP FEE EXCLUSIVE NEWS
It has been confirmed that EXO-CBX (Chen, Baekhyun, Xiumin), who is in extreme conflict with SM Entertainment (hereinafter referred to as SM), has not paid SM IP fees for about six months. It is an exclusive news from ILGAN SPORTS.
To read the source + original news, https://m.entertain.naver.com/now/article/241/0003357310
According to the music industry on the 14th, INB100, the agency of EXO- CBX, did not pay SM fees for IP, such as sound sources and names, from January to June.
Initially, the two sides decided to pay 10% of EXO-CBX’s sales to SM on a quarterly basis, which included SM’s IP usage fee for EXO-CBX. However, the conflict between the two sides began behind the scenes in March, and they did not pay 10% of its sales to SM, naturally not paying SM’s IP usage fee.
EXO-CBX’s side of story
In fact, INB100 was reportedly asked by SM to give 10% of its sales on March 7, the first quarter settlement date, after signing a contract with Baekhyun on January 7th. Since then, INB100 has raised the issue by proving the contents because it is unfair for SM to give 10% of sales without keeping the 5.5% distribution fee promise, and since then, discussions on SM’s IP usage fee have also stopped.
Earlier, at a press conference on the 10th, EXO-CBX actively proposed an agreement to pay for assets such as SM’s sound sources and names instead of 10% of sales, but SM ignored it. INB100 once again emphasized this condition while distributing an official position that predicted a lawsuit against SM.
SM Entertainment side of story
However, it is said that this condition is not acceptable to SM, because if CBX will only pay IP usage fee instead of the existing contract to give 10 percent of sales to SM would be damage to SM. There is also a huge difference between 10 percent of sales and IP usage fee.
In addition, SM is said to be in a position that including IP usage fees in 10% of sales is a precedent made through court arbitration during the past dispute over exclusive contracts for EXO Chinese members, so it cannot be broken.
If not paid, what happens?
Apart from the conflict between the two sides over 10% of sales, it is expected to be another point of the conflict between the two sides in the future as EXO-CBX must pay SM IP usage fees.
If this problem is not solved, CBX will not be able to use various music sources from the name “CBX” to SM. In the worst case scenario, CBX will only be able to use newly released music from INB100 after changing the name of its activity.
Previous article about EXO-CBX, SM sues EXO-CBX, CLICK HERE.
