Public sentiment is mixed regarding this contentious issue.
The UBJ
SM Entertainment has initiated a legal action against EXO-CBX, which includes members Chen, Baekhyun, and Xiumin.
The lawsuit demands the subunit comply with conditions that were agreed upon previously in their contract with SM Entertainment.
In retaliation, EXO-CBX has filed a counter lawsuit against SM Entertainment. Their position, however, has caused confusion among netizens. EXO-CBX’s official statement offered an alternative to the 10% sales demand from SM.
In our dialogue with SM, we reiterated our stance and proposed compensating with usage fees for SM’s music and assets instead of the 10% sales cut they requested. This proposal was disregarded by them.
Posts on online forums have criticized this proposal, highlighting that it confirms EXO-CBX’s free use of SM’s assets so far.
The offer to now pay usage fees seems presumptuous, as SM could have demanded both 10% of sales and usage fees. This implies that EXO-CBX assumed using the assets was without cost.
The consensus among netizens aligns with the original poster, pointing out that paying SM for usage rights should be standard practice.
- “Are you kidding me?”
- “I hope they take away their name too.”
- “Why are doing this…”
- “I can see why SM ignored the proposal.”
- “SM needs to take strong legal action. Otherwise, they have to listen to these requests from artists.”
- “They have no conscience.”
- “Just do the lawsuit and get it solved.”
- “I was confused about this part too, I thought I read it wrong so I had to look at it again.”
- “If they signed a contract, they should just do as it says. Why did they allow individual activities? If they just let it go this time, other artists will probably go to different agencies for individual activities.”
- “You are supposed to pay usage fees if you use another agency’s assets. Didn’t think I’d see the day I praised Lay paying 30% fees to SM.”
- “Huh? They weren’t paying usage fees all this time? If they are asking for 10% sales including the IP usage penalty, SM is really letting things slide for them.”
What do you think about the issue?
EXO-CBX Files Lawsuit Against SM For Unfair Profit Distribution
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Frequently Asked Questions
What is the lawsuit between EXO-CBX and SM Entertainment about?
The lawsuit involves SM Entertainment’s demands that EXO-CBX comply with previously agreed-upon contractual terms, while EXO-CBX has filed a counter lawsuit with alternative proposals.
What was the online reaction to EXO-CBX’s proposal?
Netizens expressed confusion and criticism over EXO-CBX’s proposal to pay usage fees for SM’s assets in lieu of a 10% sales demand, pointing out that paying for usage rights should be a given.
Has SM Entertainment responded to EXO-CBX’s lawsuit filing?
As per the shared information, SM Entertainment disregarded EXO-CBX’s proposal, but it is not specified how they have responded to the lawsuit itself.
What are netizens saying about EXO-CBX’s use of SM’s assets?
Netizens are suggesting that EXO-CBX might have been using SM’s assets without appropriately compensating the company, as they proposed to start paying usage fees only after SM’s lawsuit.
Is this a common issue in the K-pop industry?
Contractual disputes are not uncommon in the K-pop industry as artists often negotiate terms of profit distribution, usage of assets, and individual activities with their management agencies.
