SM sues EXO-CBX accusing of Tampering
SM Entertainment has filed a lawsuit against the group EXO Chen, Baekhyun, and Xiumin (hereinafter referred to as EXo-CBX), which are in conflict over the commission rate of album and music.
On the 12th, SM filed a lawsuit against Chenvac City in the Seoul Eastern District Court. SM said, “It is correct that we submitted the complaint (against Chenvac City) to the court,” adding, “We will respond according to the law and principles.”
EXO-CBX claims that SM promised to let Kakao, a record and music distributor, apply a 5.5% commission rate, but it did not keep it. EXO-CBX agency, INB100, held an emergency press conference on the 10th and declared a full-scale war with SM, claiming that SM did not fulfill the contents of the agreement at the time of the exclusive contract dispute. To read the article about the overview of it, CLICK HERE.
In response, SM emphasized in its rebuttal, “It only means that it supports negotiations with distributors to help EXO-CBX, but it does not have the authority to determine the distribution commission rate.” It is explained that SM did its best in relation to the commission rate, but it did not succeed, and instead minimized the financial damage of EXO-CBX in another way.
In addition, SM explains that it is a standard that was implemented in accordance with court arbitration with EXO Chinese members who previously had exclusive contract disputes with 10% of sales of individual corporations.
The essence of the case, which SM claims, is tampering. CBX, which renewed its contract with SM, notified the company of the termination of its exclusive contract last year and filed a complaint against SM with the Fair Trade Commission on the grounds that it did not provide proper settlement data. At the time, SM confronted the company by raising suspicions about tampering, saying that a certain agency was manipulating the members behind the scenes.
It makes curious how INB100 will react to it.
