SM Entertainment Replies To INB100 On “Unfair Terms” In The EXO-CBX Deal

SM Entertainment replies to INB100 on “unfair terms” in the EXO-CBX deal When the EXO subunit CBX (Chen, Baekhyun, and Xiumin) announced regarding INB100 that they were unable to pay SM Entertainment (henceforth SM) 10% royalties on personal activities, SM brushed the matter off as “tampering.” “The exclusive contract between CBX and SM is still valid, but an agreement allows CBX to engage in personal activities through their private corporation, paying SM 10% of those earnings,” SM confirmed in an official statement made today. Through their own company, CBX has freely pursued a variety of personal endeavors since the agreement.” According to SM, the 10% royalty on personal earnings was imposed through court arbitration as a result of a prior contract disagreement with EXO’s Chinese members. Additionally, SM stated that INB100 sent a notice stating that it was no longer required to uphold the agreement once it became a subsidiary of One Hundred. SM claims that CBX intends to keep their EXO membership privileges and advantages without carrying out their responsibilities. SM emphasized concerns over settlement data provision, stressing that such information and specifics about individual activities are private and proprietary. Each artist and I negotiate these specifics on an individual basis, and sharing them could have serious consequences. SM voiced worries that exchanging copies of settlement data could allow unapproved parties to view it. Concerning the alleged 5.5% distribution fee, SM explained that SM has no jurisdiction to set such prices and that this was merely a kind gesture to assist CBX in better negotiating with distribution businesses. CBX had asked for the distribution fee requirement to be included in the agreement during the process, but SM responded that they were unable to do so and left it out of the final agreement. Additionally, SM stated that they paid the cancelation fees for Baekhyun’s Japan show and permitted the release of Baekhyun’s solo album through CBX’s private corporation after CBX’s desired adistribution fee adjustment became challenging. According to SM, CBX hasn’t experienced any particular losses.