Sayart.net - SM Entertainment Files Lawsuit Against EXO Members Over Royalty Dispute

Agency Seeks 10 Percent Fee from Chen, Baekhyun, and Xiumin for Alleged Contract Violation

Courtesy of SM ENTERTAINMENT

SM Entertainment has filed a lawsuit against Chen, Baekhyun, and Xiumin of the boy band EXO, demanding payment of a 10 percent royalty fee that the members have allegedly been avoiding for the past two months. The lawsuit, filed with the Seoul Eastern District Court, names the three members collectively known as EXO-CBX, a subgroup of EXO.

According to SM Entertainment, the trio has been evading the agreed-upon 10 percent royalty fee since April. This agreement was established in a contract signed in June of the previous year, following extensive negotiations between the two parties. The agency expressed its dissatisfaction with the members' actions, describing them as "nonsensical" and unacceptable.
 

▲ Courtesy of SM ENTERTAINMENT

INB100, the agency representing Chen, Baekhyun, and Xiumin for activities outside the EXO group, sent a formal letter to SM Entertainment on April 5, disputing the obligation to pay the 10 percent fee. INB100 claims that SM Entertainment had agreed to a 5.5 percent distribution rate with Kakao and that INB100 had consented to the 10 percent royalty fee on the condition of this agreement. The letter, issued by the trio's attorney, Lee Jae-hak of law firm Lin, asserts that SM Entertainment failed to fulfill its part of the deal, thereby nullifying INB100's obligation to pay the royalty.

The lawsuit filed by SM Entertainment is categorized as a "demand of performance," seeking to enforce the clause in the contract. Industry insiders suggest that the agency may also pursue additional legal action for compensation.

As of Thursday afternoon, INB100 has not provided any comments on the lawsuit.

Sayart 

Kang In sig, insig6622@naver.com