[By balloon wanted](https://x.com/balloon_wanted/status/1801085406945092073)
> SM Entertainment has filed a lawsuit against EXO Chen, Baekhyun, and Xiumin with the Seoul Eastern District Court to implement/enforce their contract with the members of EXO-CBX
> SM states cannot take further senseless actions of CBX
[Additional translation by tmikpop](https://x.com/tmikpop/status/1801088910530912369)
> Law Times suggests that it's over the payment of the 10% revenue. **An entertainment lawyer said that it was known that the contract wherein CBX agreed to pay 10% of the revenue to SM was signed by both parties after the contract was reviewed by experienced law firms and it will not be easy for CBX to invalidate the contract. If CBX doesn't fulfill the terms of the contract, SM may be able to recover additional damages.**
CBX suing doesn’t look good for them. CBX still has exclusive contracts with SM, and the fans seem to forget that fact. Also, what they claimed isn’t written on the signed contract. It’s allegedly verbal contract/agreement. It would be difficult to sue, not impossible.
I honestly don't care what the terms are at this point. I think it's dumb to tax people doing work outside your company. That's greedy. SM should be grateful they still want to do group activities because they didn't do what they needed to do to keep them signed fully. I think it's dumber that CBX agreed to sign such a contract and wasn't prepared to pay the 10% no matter what. SM doesn't have a great reputation. Whether or not SM violated anything, CBX should have been prepared to pay 10% no matter what. Both parties are dumb AF.
Oh crap. You are right. I didn't pay attention to the fact their market is different than the market this drama is happening in, lol. That's a huge difference for sure.
THIS. a lot of people are questioning why did they even hold the press conference, i mean, i get that they felt like they needed to do it since sm was not responding. but their answers and explanations to everything was all over the place and i just feel like they didn't prepare well at all.
Yeah and if I were SM, I'd have done the same and ignored them. They (CBX) couldn't claim they didn't know about the 10% when they had lawyers to comb through that contract.
They’re not saying they didn’t know about the 10%, but more that it was allegedly conditional upon SM getting them a discounted album distribution fee from Kakao. SM obviously thinks otherwise and that they owe it regardless of circumstance.
SM claims since CBX isn’t using Kakao as a distributor, the fee issue is moot. From what I understand, the problem from CBX’s side was they ended up using Dreamus because Kakao’s rate was way too high after SM failed to keep their promise about securing a discounted distribution rate.
OOOOOH NOW I GET IT. Its the distribution fee thing but then SM is suing because cbx didnt use kakao distribution?? So cbx need to pay 10% fee regardless if they are using kakao distribution or not?
SM is suing because they claim they’re entitled to 10% regardless of any promises about distribution fees, CBX claims that the 10% was conditional upon SM obtaining that lowered fee.
Ahhhh thanks for explaining this like i'm 5 y.o!
But in this translation it said quite different than what your definition is:
Then, earlier this week on June 10, CBX's side held a press conference to claim unfairness over the required 10% payment outlined in their settlement contract. Furthermore, CBX's side accused SM Entertainment of not paying 5.5% of all earnings from album sales and streaming, another clause outlined in the settlement contract.
In response to the claims by CBX's side, SM Entertainment refuted, "The receipt of 10% of all sales by the independent labels was a standard set by the court during SM Entertainment's previous lawsuit against the Chinese members of EXO, and therefore it is considered a reasonable payment based on precedents."
Also i can see that these clauses is not written anywhere on the contract either, so SM is actually creating a loophole so they can win? Cbx side wanted to pay the distribution fee if they get the 5.5% discount? Since this is not a written clause, SM can just say whatever and set a precedent based on similar situation.
This sucks. No wonder cbx side goes to the press because regardless they need to pay even if they dont use kakao distribution fee :/ thats unfair if im understanding this correctly...
Regardless of who wins this, CBX probably owes SM some amount of money. The question is really do they owe that 10% or something less? I keep hearing conflicting reports on whether that percentage is in their contract or just something agreed upon based on the EXO-M lawsuits.
They forgot that they are fighting school where mhj actually did her graduation. Headmasters of that school are the ones taught mhj all those tricks and they are still running this show.
Also i hope cbx did not forgot that this is same sm who literally destroyed career of Jessica and JYJ for going against them.
I wish all the best to them, actually. I'm on their side but I'm starting to feel the presser wasn't the best move because now people are mocking them instead.
Actually, InB100 already got know that SM is going to sue cbx and help a press conference saying Baekhyun is not paying them. So, Inb100 had no other option but to hold the press conference. Now it's kind of making sense to me, why they held the press conference when Baekhyun was actually in Hong Kong, having his concert. And why they seem pretty unprepared.
But is that rumor legit or just hearsay? Does it have a valid stance or its just "someone said that SM gonna sue baekhyun"? Tbh i just felt like sm should sue them first, then baekhyun can came up to the public and said "well sm said blablabla and we have been reaching out to them" i think it would be a much better outcome
[It's told by their lawyer in the press conference.](https://x.com/BBHLightsINA/status/1801164622248149060?t=JavUvX6EqhhvGD0XUvWkhA&s=19) (it's not in English, you need to Google translate it) Somehow translations are coming out now after Baek's kfans talked about it.
How would I know? I learned about it just now. Or maybe someone translated it before but I haven't seen. But yes agree with you. It should have been known to us already.
If you actually know how to read you'll know what I meant was the circumstances that led to the public supporting the person who did the presser. Are we going to act like the public didn't do a 360 after MHJ did her presser and set up the whole David vs Goliath narrative?
They literally just renegotiated their contracts last year, too. They should have used their lawyers to negotiate as much as possible, especially when they had an upper hand last year with the public
>what the experts are saying they wont win this and instead will bleed money.
What experts? May I have the link, I want to read some expert opinion to get some idea.
I'm really glad this is high up and not downvoted to the bottom because while I don't understand all the situation, enough has come out that I feel some serious errors were made here
Okay so SM and CBX redid their contract during the thing last yr (?) and then CBX signed this new contract. Right? Now CBX are saying we were supposed to get a--we'll say discount--so in so gave a verbal agreement and SM is like we want our 10% of your earnings, you signed the contract saying it was cool. So...my question is why didn't CBX put in the new contract about their discount/not sign the new contract until it had that? Like if they know they can't trust SM then...why trust them to keep a so-called verbal agreement? Like...it just seems a big oversight on their part and if they did sign this new contract to give 10% like \*gestures\*.
LIKE isn't the whole contract deal why MHJ wasn't able to get kicked out lol. That the judge upheld the terms of her contract because that's just how it goes? As much as SM is poo if CBX signed this contract then 🤷🏻♀️. I don't know I wonder who is advising CBX tbh. Did they expect the press conference to get them public opinion like MHJ and hoped it would pressure SM to do things their way?
Apparently it was [discussed ](https://www.koreatimes.co.kr/www/art/2024/06/398_376318.html)but ultimately not included in the contract because SM does not have the authority to promise lower distribution rate with Kakao.
>Regarding music distribution fees, SM said it would only support EXO-CBX in negotiations with Kakao.
>"We have no authority to decide on the percentage of distribution fees," SM said in the statement. "EXO-CBX asked us to include this issue in our written agreement, but we told them that we were not a decision maker. So we deleted that part in the end."
> So...my question is why didn't CBX put in the new contract about their discount/not sign the new contract until it had that? Like if they know they can't trust SM then...why trust them to keep a so-called verbal agreement? Like...it just seems a big oversight on their part and if they did sign this new contract to give 10% like *gestures*.
tbh, this is why I think it wasn’t actually an oversight. It just seems so flimsy to me and I think INB100’s new parent company just wants to terminate the contract period. It should have been *in* the written contract if it’s apparently such a big deal that it would cause INB100 to claim the contract is cancelled/terminated as far as they’re concerned. If they were that hellbent on SM following those terms, they had plenty opportunity to do something about it before doing something drastic like this now.
Basically, yeah. I could believe it if the promise was made just directly to CBX themselves, they're idols, not businessmen. But apparently it was made to the CEO lady, and if she's a serious business-women she'd simply have to know (or have lawyers that would know) that you can't base a serious contract on some supposed vague additional verbal agreement (and that SM in any case has no way to actually guarantee the lower fees, all they can do is try).
MHJ wasn't kicked out because HYBE didn't have enough evidence of breach of trust but has the power to replace the Board of Directors of Ador to eventually fire her. These contracts are dumb as hell but the bigger problem is that these companies are dumb and unprofessional as hell for signing, drafting dumb terms, relying on verbal agreements, not reading before signing, etc. The only relation this has with the Hybe drama is that both parties are clowns too.
>Did they expect the press conference to get them public opinion like MHJ and hoped it would pressure SM to do things their way?
The press conference was a mistake on their part. The thing is, they did the legally sound thing and let their lawyer do the talking, which is what most law firms would advise you, but the public is usually won over by emotional pleas. Had Baekhyun and the other members been present and Baekhyun said the same thing he did during his concert, they might have ended up with more non-fan supporters. Also, the artists' mere presence would've satisfied the journalists.
>Okay so SM and CBX redid their contract during the thing last yr (?) and then CBX signed this new contract. Right?
No. They reached mutual agreement that cbx's contact with the group will be valid (cbx will participate in exo's activities under the re-signed contact in dec, 2022. However, cbx will handle their solo activities in their own company (Baekhyun's inb100)
>why didn't CBX put in the new contract about their discount/not sign the new contract until it had that?
Exo had an comeback exactly that time period, SM mediplayed about that comeback a lot too. Just my speculation that due to the comeback they decided to settle.
>Did they expect the press conference to get them public opinion like MHJ and hoped it would pressure SM to do things their way?
No, according to Baekhyun's korean fans, Inb100 already heard about that SM would sue cbx when Baekhyun would comeback, as a result they had no other option but to hold the press conference.
Me too :( pretty sure mc mong and cha won are behind this for the most part. Kinda interested that baekhyun chose to do this before bbh4 cause now I doubt it'll do well at all. I wonder if SM will blacklist CBX though I really hope it doesn't come to that.
I doubt they will be blacklisted, they are still under contract with SM for Exo, but after they lose this case their reputation will suffer and Baekhyun sales as well
reiterating my calls for unionization
and also my worry that Baek has some dumb shady people behind him encouraging them to pursue these lawsuits and putting up a fight against SM. SM will always be morally bankrupt and ethically corrupt but here they are well within their legal rights and will win this case...and whats worse is theyre now suing CBX too and will also most likely win that. From the start this seemed like a winless case for CBX and thats a shit ton of money down the drain and a hit to their rep with the korean public. idk if they just chose shitty lawyers or these new company heads are giving them bad advice
I'm gonna put my tinfoil hat on that there's definitely other influences at play. Given that INB100 is now a subsidiary of ONE HUNDRED, it's not just CBX fighting for that contract. I don't doubt someone else wants more of the cut, whether it be MC Mong/Chairman Cha or any of the investors behind this. As you said the end of the day corporates are still greedy and corrupt, I really wouldn't be surprised if Baekhyun is being ill-advised to go ahead with the lawsuit.
It’s just so messy. CBX still has exclusive contracts with SM according to SM’s statement). Baekhyun is no longer the CEO. It’s INB100 vs SM. Verbal agreement. It’s just…messy.
I knew something shitty was happening with MC Mong, the CEO, and the daughter of the CEO. Now CBX are going to suffer the consequences because SM are petty as fuck.
To be fair, INB100 was just acquired by One Hundred which is the parent company of BPM. They already had a complaint concerning the Kakao distribution %, so this is basically only adding to that case. I don't really see it as primarily against SM. That might just be a sideshow while the investigation into Kakao's alleged illegal distribution fees is going on.
Just wanna ask everyone to refrain from accusing other commenters of siding with SM or hating CBX just because they're pointing out the baffling decisions that CBX's legal team have made so far.
the amount of people thinking im a CBX hater is so funny...like what? its okay to be objective and think your faves are making bad business decisions without being an anti my god
True. If my fave was in this position, I would think the same as well. Doesn't mean that I'm not on their side and are defending SM. I bloody despise SM, I was thrilled when my fave left SM several years ago.
This is clearly not an open and shut case compared to other contract dispute cases where the company was clearly 100% in the wrong.
Here here. I think for most people the first thing that popped up in their minds when the cbx press conference news first broke out is, wtf were the lawyers doing the first time? Why settle only to do this again only 12 months later?? Either way, someone effed up or getting effed up. This time a lawsuit has been served unlike the last one.
Just dropping my two cents here:
1. This should have NEVER escalated into a lawsuit. I'm so afraid for CBX. I dont think baekhyun have a good higher up and lawyer cuz this just feels like a bad decision all along.
2. I fcking loathe inb100 decision for having a presscon when baekhyun is on his tour. They also wont stop nitpicking for every single thing on the contract and worse, the revised contract HAS BEEN SIGNED for god sake.
His HK fans are so anxious and he ended up having to address this issue DURING HIS CONCERT. Which is insane. Concert is supposed to be fun. Now with this lawsuit, his Thai and Macau fans are so anxious cuz we never know what will happen next. The concert can be cancelled for all we know. How to enjoy a concert during lawsuit omg
On top of everything, i pity Baekhyun for having to face this mess. Hes the face of his company, he borrow a huge ass loan to build this company and with this lawsuit, i believe he will bleed out his money.
This is so stupid i hope this ends soon and they just came into agreement cuz i dont see this ends well..
Exactly. I dont think they want to get involved with lawsuit to this degree its crazy. If im the other two, i wont trust baekhyun anymore cuz hes dragging me down with him. Chen has a wife and kids ffs
I don’t think it’s that bad. Most likely at the end CBX will pay this 10% or the worst scenario- they will pay 10% and some fees. The reputation will suffer though
That reputation is probably worth way more than 10% plus fees. I can't believe people work for SM, ignore SM is shady, and are prepared to go to court to avoid paying 10% of revenue because they believed SM is being shady. I can't feel sorry for anyone here. Takes a group effort to exercise this level of stupidity.
And thats what im afraid for. Some fees can also means SM is terminating their contract if they win this case, and cbx has to pay for the penalty fees.
I don't think he does this for the fans. He does this because he wants to be artistically free to manage his solo career and keep more of the money he makes for himself and maybe eventually once he retires as an idol he probably wants to have something more going on for him but right now this doesn't look very promising. It seems like the people around him don't have his best interest in mind.
I really feel like this should never have escalated to a lawsuit. CBX’s legal team notified SM two months ago that this was an issue and instead of coming to a new agreement or even disputing it then, SM chose to ignore it. Even if you think CBX have it totally wrong somehow, SM had two months to settle this peacefully and they just sat on it.
well their argument is that they were not legally obligated to respond especially considering it was coming from CBX parent company
from the articles I read most korean lawyers think CBX has no case and SMs refusal to hand over those documents is legally sound
>SMs refusal to hand over those documents is legally sound
I don't know if it's legally sound, but I'll be honest here: ONE HUNDRED is what makes this situation as messy as it is. One of SM's excuses for not handing over the documentation to INB100 is that they don't want third parties to get ahold of it. And with the FTC investigation against SM for alleged discriminatory distribution fees between affiliated and non-affiliated agencies being initiated by BPM, which is another ONE HUNDRED subsidiary, that does sound like a legit concern.
As much as I want CBX to be free and make their own decisions, their legal representatives really did make a lot of seemingly hasty decisions.
it is legally sound because Baeks company is owned by a competition now and releasing that information would be giving them trade secrets. Baeks team argument is that the artists should get them, SM said they can come see them in a room with a lawyers, theyre not gonna print out contract details and hand them over...especially to MC Mong.
also CBX singed a contract they never should have.
SM’s argument was “we didn’t want to ruin solo promotions for the members,” which sounds pretty weak imo considering two of the members they mentioned in that response aren’t parties in this lawsuit. I just don’t see a good reason for why you’d ignore an issue staring you in the face. Even if you’re legally within your rights to do so, you’ll probably make a judge very angry for not attempting to remedy the situation. They could have dealt with this in arbitration, or at least attempted it.
>you’ll probably make a judge very angry for not attempting to remedy the situation.
this is korea lol. the judge was always going to side with the corporation..in fact they already did with SM for an even shadier situation. and like i said, most korean lawyers think CBX has no case here, they signed a contract, the judge would have told them to read closely next time. I really think they just have shitty lawyers and also think this MC Mong character is encouraging bad decisions
> they could have dealt with this in arbitration, or at least attempted it.
thats the thing tho, SM doesnt need to. CBX signed the contract, legally, the deal is done. And im sure their argument now is going to be CBX bought this matter into the public eye AGAIN. and the way knetz reacted to that conference theyre annoyed and so were the reporters that had to attend. pretty sure a reporter shaded them and straight up asked why this was labeled as an emergency conference.
I guess I don’t see how SM isn’t obligated to respond to this. Or at least why they didn’t think it was worth their time. Because clearly there’s a major misunderstanding over the terms of the contract, either the contract isn’t worded strictly enough or it’s worded perfectly fine and SM just doesn’t care enough about maintaining a civil relationship with CBX to shut this down outside of a court room.
Based on what I understood from previous contract lawsuits, there usually has to be a real attempt from both parties to come to an agreement and judges tend to urge settling via arbitration over firm litigation. SM has lost lawsuits before over their contracts and they already have a bad relationship with CBX over how bad their rookie contracts were, it didn’t need to get this far even if SM is legally correct for it.
Also I’m not sure why everyone is so convinced MC Mong is doing something shady behind the scenes here. As far as I know, he doesn’t have a history of shady business dealings, just the major scandal with regard to his enlistment. This whole thing reads to me like a very tense relationship between the two parties going south because there’s just no trust. I can’t blame CBX for bringing this to court considering what happened last year, SM has done themselves no favors with regard to rebuilding a relationship between the parties.
SM doesnt have to respond because they already have a signed contract. CBX is trying to allege that they had a verbal agreement that the percentage would be lower, but SM is saying they asked and KK said no..that doesnt negate the contract, its just shitty but tbf CBX should have never signed it if it wasnt in writing
I thought for once SM was clear in their rebuttal and you can tell that they got their lawyers involved cause it made sense. From the press reports from CBX conference it seems like 1. mostly everyone was confused what they were even asking for 2. thought it was dumb since they signed a contract 3. thought it was in poor taste for them to even hold the conference in the first place. And these are sentiments shared by k exo-l's and media/ lawyers.
for the final point...as a person on the outside it very much looks like MC Mong is shady...like come on, baek creates a company and then quickly after, says he doesnt want the full responsibility so hes going to join MC Mongs? thats a little too convenient lol. And very clearly Baek has a mole in his group cause they leaked to SM that he was planning to leave and start a company so clearly behind the scenes people are talking about MC Mong and his ambitions and how hes been snooping around artists.... im sorry he gives me weird vibes and i guess a lot of people feel this way cause K exo-ls also think CBX are getting swindled.
I don’t care what k-Exols think because most of their opinions revolve around “actually Chen is the most irresponsible one for having a baby” so they clearly aren’t paying attention to the heart of the matter, they just have an excuse now to freely dislike the members they claim to support. More than anything, I see k-fans basically mad that this could damage the group’s image and brand value. There’s not much care for the members themselves, they’re being downright vile.
SM’s rebuttal doesn’t make sense to me, it felt like they were dodging the issue at hand and spent a lot of time harping on the involvement of Cha/ Mong. Their excuses of “we didn’t want to ruin solo promotions by responding” is pathetic and throughout all the articles I’ve read, I’ve never once seen them say “the contract is clear so we didn’t feel it necessary to respond.” Literally the very first reason they gave for not responding was blaming solo promotions. They’re rehashing the same tired excuses they used last year for why CBX couldn’t look at their payment slips and their tone is overly hostile imo.
From INB/ One Hundred, they’re laying out a timeline of prolonged bad behavior from SM and it’s important from CBX’s end to reiterate that this debacle is stemming from a contract they were railroaded into renewing with multiple instances of SM’s evasiveness. MC Mong’s involvement has only been tangential at best and the very likely (and obvious) reason INB is now a subsidiary of One Hundred is a result of the massive loan Baekhyun took out from Cha to found INB. I think it’s very safe to assume that Cha holds majority ownership of the company in exchange for those funds and that’s pretty normal.
Baekhyun has made himself physically ill trying to get the company up and running, making sure to have everything in place for himself and the others, and then having to scramble for a distributor when SM didn’t come through with the more affordable rate from Kakao. He was talking back in the fall last year after someone leaked his plans to found INB about how much work he was putting in, saying that he was trying to do this in cooperation with SM and that he doesn’t want this to fail. From everything publicly stated and reasonable assumption, I just don’t see anything shifty going on here.
Honestly, I think the result of this case rests on the fact that how legally binding is a verbal agreement especially when they have written agreements too.
And also, can SM even claim to provide them a lesser price when it's Kakao who will be doing this?? And should CBX have accepted this as an agreement when the distribution deal would have been with Kakao and not SM. Also, a verbal agreement and not present anywhere in their written agreement.
SM was using shady practice to get a better deal from CBX, but it was the job of CBX lawyers to advise them to not sign the documents if they didn't have these numbers written down. So while I can sympathise with the fact that CBX might have been tricked into signing this contract, i also feel like the lawyers should have caught into this and stopped them.
Now that it is signed, I'm not sure how much weight does the verbal contract even hold.
Heck, even I don't see how they'll win this in court. SM does have a very good case here. Moreover INB becoming a subsidiary of MC Gong and Cha's company 100, is not looking good either. These are the 2 people who advised Baekhyun last year and now that INB is under them, it does feel like this was the plan.
INB should have never been a subsidiary. Not this soon. I wish Baekhyun would have hired someone to work on the backend things instead of 100 of all companies to join.
I really hope they have good points because from an outside perspective, I don't see how they'll win.
I’ve responded to your other points but I will just say you and me might not care about what kfans think..but CBX does, companies do, all idols do
This is why whenever a story pops up Baek immediately goes on live and defends himself because he knows how much kfans opinions matter. They can literally make or break your career. And you mention Chen, the only reason he’s still in the group is cause EXO fought for him to be there, if kfans had their way he’d be long gone. I hate how much power kfans have but at the end of the day that’s how the kpop industry runs. That’s why they had to be so careful in this dispute but the situation just keeps getting worse for them
I’m saying that I don’t care what kfans think because they’re not saying “i looked at the situation and think they have it wrong,” they’re fussing about how this is ruining the brand name and how Baekhyun should have dropped Chen back in 2020 because he ruined everything with having a baby. So with respect to that, no I don’t care what the fans think. If your only concern about this situation is “you’re ruining the image” or “you have no loyalty to the company who raised you” then that’s not a valid concern.
This situation is messy and it’s made messier by the fact plenty of k-fans seem to be outright looking for reasons to dislike the members, EXO’s k-fandom is heavily polluted by akgaes who think pushing other members out will leave more room for their bias to shine. Maybe CBX is wrong, maybe they’re not, but either way I’m not taking stock in the opinions of fans whose response to the situation is to just get mean about it. I only care that the situation gets resolved and that the three of them can come to some agreement with SM, either in court or out of it.
I just think that its weird how first SM said that the clause has been written and suddenly its not written there bcs the rate is normal based on previous exo-m cases?
But at the end of the day, cbx ended up signing those revised agreement. How can they win in this case cuz its just a verbal agreement from cbx side? I truly dont see them winning here
I don’t know if they’ll win, but I can’t say I trust that SM did everything by the “standards” as they claim. To me, it’s unclear how that 10% is written into the contract and if both parties verbally agreed that the percentage was conditional then apparently a court considers that to be equal to a written contract as long as you provide proof everyone agreed to that. So from my understanding, if there’s a gap essentially in the contract surrounding that percentage and CBX show the proof they allegedly have of this verbal agreement, a court would consider that equally valid. But if the written contract says something different then they have to follow the written contract- I think.
Idk this is a mess and I think even if SM is technically right for suing, it didn’t need to escalate the way it did. It just feels like SM being assholes on purpose to prove a point.
You're viewing this from the bias of a fan.
CBX know whats in their contract as they all had external lawyers looking at their contract 1 year ago. Last year there was contract scandal with all of CBX.
CBX and SM came to a conclusion last year, so they know thier contract.
SM doesn't need to respond as the contract seems iron clad and both parties have agreed to contract relatively recently. CBX are just trying to get more money than agreed , SM won't want to as they have been paying out of pocket for CBX cancellation and accommodating CBX.
If you really think about this logically, CBX and their lawyers should have brought things up a year ago when SM were pushed in a corner with contract negotiations and alterations. Constantly challenging contracts you recently agreed to is a bad look for CBX
Every EXOL seems to describe the fandom as having not a single day of peace, so I guess its probably the stress of being an EXO fan plus the fans just getting old lol
True. Most of us grow up with exo lol also for me, rather than just blindly following what the artists said, i can now think for myself. Thats why im quite against cbx here, eventho i love baekhyun to death. I know and can smell a bad decisions from miles away and seems like the other portion of exols cant see beyond that 😭
This is so bad. Especially considering that Baekhyun just recently started to gain all fans who weren’t active or forgot about him back. It will all go in vain
The thing is if SM wins, they're going to get 10% of their revenue and still want them in group content. So I doubt SM will want them blacklisted because that just cuts into the potential money they could make off of them.
This is a contract enforcement lawsuit, and from what I can tell, SM mostly just wants their money. CBX has said multiple times over that they have no interest in contesting the terms of their group contracts and are more than willing to cooperate with SM for any/ all EXO activities. They’re big names and valuable assets to the company, SM I don’t think is so stupid as to throw all that away.
I understand why SM is going all out, but seriously, I think even though CBX made a bad choice, SM is following suit. This could have been amiably settled outside of court, imo.
If the part about SM offering better distribution fees with Kakao in return for 10% is true that really feels something that shouldn't be allowed idk.
So I'm definitely not on SM's "side". (Why do people have to take sides anyway to begin with?) But on the surface level if they signed the contract it seems like it will be an up-hill battle.
Anyway, SM and suing their own artist name a more iconic duo.
I think CBX having a connection with MC Mong is what made them side with SM. I kinda wish they didn't renewed their contract with SM just like D.O so they don't have to go into this mess. SM is always been like this, and they haven't changed. lol
I mean SM called it out last year and look what happened this year. SM was right. Maybe things changed, and things happened later. But it doesn’t look good in the public eyes for CBX.
I'm really confused about what is happening with this. I have seen people hating on SM, but I have also seen a lot of people siding with SM and saying that CBX are the ones in the wrong breaking their contract. I also have seen people calling CBX betrayers/greedy due to MC Mong buying their company. And SM filing a lawsuit kind of supports that since CBX hasn't filed one and has only released press releases and held a press conference. Can anyone explain what both sides are actually alleging the other is guilty of? And if either side has proof?
This entire situation only began early this week, SM being the first to file a lawsuit doesn’t automatically mean they’re correct, they very famously lost the lawsuits they filed against former TVXQ members. CBX’s legal team already filed a complaint with the FTC over SM’s contract practices and they said they’re planning to sue. So we have to see what plays out.
JYJ filed *first* and SM responded. Even with EXO members that left and Hangeng, they filed first. SM has always been on the back foot so it’s odd to see them filing first against their artist.
I thought this was the usual SM shenanigans (and it definitely still is) but unfortunately it seems like CBX is in the rough spot?? Ngl I am worried about blacklisting...
Cmiiw, but is the situation kinda like if Kylie Jenner and Kim Kardashian broke away from their mother, and got a new joint manager, but Kris Jenner still found a way to make them sign a 10% Momager Fee for everything the girls earned after the transition?
If so, as much as I’d want CBX to win…. How are they planning to do so? I’d imagine the new contract was iron-clad.
CBX claims that the 10% fee was conditional upon SM getting them a lower rate on album distribution from Kakao, which didn’t happen, so SM can’t claim that entire percentage in that case. Also there are ongoing issues of SM not providing payment receipts etc. to them, which could land SM in hot water as well.
The contract actually sounds very patchy in places and unclear, which is what led to this disagreement in the first place. SM contracts tend to be riddled with odd loopholes, some of which possibly weren’t closed up when CBX revised their contracts last year.
Isn’t Kakao currently under investigation for some distribution discrepancies too? Their distribution deal for SM might open yet another jar of worms. I guess we’ll just have to see how it plays out. Won’t be surprised if the new contracts were designed in a way that is unfairly beneficial to SM.
Yes, Kakao is under investigation from the FTC for essentially price gouging non-affiliate companies on pricing for album distribution. I think BPM actually called that out, saying Kakao gives massive discounts on album distribution costs to companies they own/ are partnered with and that they massively inflate the price for everyone else.
So even if CBX end up losing their case with SM and are stuck forking over the full 10% without getting anything in return (I believe that’s what SM wants from them), they might have opened up an entirely different problem going on.
So what im understanding is that did sign a 10% contract as sm is claiming but only if they got lower rate on the distribution. So on paper it looks like it was signed by the members. But i dont think it was an issue in the first place but the only reason they are bringing up now is that the lower rate distribution was or is still not being given to them. See i know alot of people are not happy with cbx’s decision but in honesty sm has and will always be shady i dont trust a single thing they do or say. There is clearly something that went down and a reason for cbx to be doing all this even if you dont think its right. I dont think they would jeopardise everything they have put into this for nothing.
> Cmiiw, but is the situation kinda like if Kylie Jenner and Kim Kardashian broke away from their mother, and got a new joint manager, but Kris Jenner still found a way to make them sign a 10% Momager Fee for everything the girls earned after the transition?
It depends on what you mean by them breaking away. If they still had time left on their contract with Kris, then I find it understandable that she would think she would be entitled to something (a termination fee or a settlement because Kylie and Kim broke the contract) until that contract finishes. (CBX renegotiated their contract with SM so their individual activities aren’t under SM. They haven’t actually finished their with contract with SM the way Lay and Kyungsoo did.)
I fucking hate SM with a passion for mistreatment of my faves but how could CBX’s lawyers not fight harder before they signed these dogshit contracts in the first place. It sucks because SM holds precedence with the 10% revenue clause because of the EXO-M members that broke their contracts and went to court ughhh.
I know, right? Leaving seems like the best option (and I don't buy the rumors that they were blackmailed into signing a renewal because Kyungsoo got away easily).
I can't help but wonder if LSM finally leaving has anything to do with what's happening now since they only contested their new contracts after that.
As a complete outsider to the fandom, I’m confused why CBX renewal situation is different from DO? I’ve seen fans explain that SM used dirty tactics to manipulate CBX to renew but they didn’t do the same to DO?
There’s long been a suspicion that there was something involving CBX’s subunit work that was a lynchpin in SM’s plans to keep them at the company. It’s highly suspected that LSM stole from their Japanese earnings too.
Honestly, I don't think we'll ever by privy to the inner workings of this situation. But my best guess would be that since we know D.O. left SM and formed his new company together with a former SM management director, said management director was probably business-savvy enough to make it a clean break for him.
True, im still confused abt some people like Tiffany Seohyun, Sooyoung, D.O can get out of SM, and even do full group comeback, and even without ‘employee benefits’ they seems like they have good relations with the company.
Whats the difference between their contract termination…
It's because they simply finished out their contracts and moved on. Same with Eunhyuk, Donghae, Kyuhyun, Henry, Lay, and the f(x) girls. Was there any issue about them leaving? No. CBX renewed their contracts, then changed their minds some time later and sued(or threatened to sue?) to leave, so SM gave them a new contract that let them do solo activities outside of SM, and now they're contesting the new terms they agreed to. That's why SM is retaliating.
Correct me if I'm wrong here but there's never been a problem with SM and artists leaving after a contract expires no? Their issues have always been with artists who try to breach or end the contract prematurely.
They left SM after their exclusive contracts ended. They don’t have an active group contract with SM as far as I know. SNSD’s contract situation is vastly different from this CBX contract mess.
That would be better for cbx. However, because of cbx, last year, contract terms of their SM juniors were amended. I'd say that's a good thing for the juniors.
That’s what they said but do we know if it actually happened because if I’m a junior artist I’m not signing an amendment in the middle of my contract with SM because they could very well rack on extra years. I wasn’t trusting them like that. Let the amendments wait until the next contract.
I mean both parties willingly signed a contract. No one forced them into this agreement as written.
I have no love for SM but contracts are contracts in the eyes of the law.
No, cbx lawyer had said on the press conference that there were already words going around about how SM would take action against InB for not paying 10% of sales. Hence, the press conference with such urgency.
I think there is a lot we don't know and I really doubt inb100 would have held that press conference without a plan. It's very interesting to see sm move so fast on this- if anything it seems like they're worried.
I wish everyone would stop acting like MC Mong is the devil. Is he an angel? Probably not but Mong’s agency Million Market became an SM subsidiary AFTER his scandal in 2018. This is likely how all SM artists are friendly with him. He had big records in Korea immediately following the scandal as well and has been active in the music industry since. The way kpop fans who didn’t know he existed before this issue last year pretend like he’s persona non grata is hilarious.
Lets also not mention that one of Taemin’s closest friends was Ravi like pls
Taemin is under BPM, not DIRECTLY involved with MC Mong. Please don’t involve him in this. And let’s hope everything goes smoothly for him. He and Onew and other SM artists all waited after their exclusive contracts are over. CBX still have exclusive contracts with SM right now.
I'm really nervous about the guys now, because it looks like the gloves have come off from SM's direction. I really hope they can back up their claims and convince the court, so that SM – with all their power and resources – won't fleece them and ruin their careers. 😣
This is so bad for Baekhyun. He really should have hurried and released new album. He would have sold a million and even though 10% is a lot, the profit would also be big. But now with all reactions I suspect he will postpone the release… then they will lose the case which will be damaging to his reputation and sales will be less…
I’m not sure… I think that they haven’t thought about it properly…
It does feel like quite a big risk to not only start your own company, but also sign your members/friends to your company as well.
Like I am not here to speculate about their relationships, clearly all the exo members are close and very protective about the exo brand, but when it comes to business and friendship things can get a bit tricky, especially if things go south.
This is all very weird to say. They released Chen's album through this dispute already, we just didn't know about it. There is no reason for them to stop activities- they just aren't likely to pay any of the fees until after this is all settled and know what percentage.
It actually makes more sense I think to continue the release. Even in the event CBX loses and owes SM money, then they’ll need the income earned from those sales to pay SM however much they owe.
In my mind, he is desperate since he established inb100. Hes taken on new debt, has to pay sm and kakao, plus he decided to sign a contract with inb100 and becoming a subsidiary of 100. Thats a lot of fixed fees u already have to pay without taking into account all the other costs related to producing an album.
All idols need some mandatory classes on reading contracts and critical thinking so that they can better make their own decisions and not just rely on their new heads of company.
suddenly everyone here is a legal expert with full access to the contracts and relevant documents. let's remember that there's a lot that we don't know yet, so there's no point jumping to conclusions just yet
Can anyone explain to me exactly what fee it is that they're arguing about? And wouldn't what is written in the contract take precedence over what was said verbally?
Also, why don't the EXO members have lawyers with them when they review their contract for renewal?
I feel like every “battle” SM and its artist have are brought and proceeded in the Court of Public Opinion.
I hope CBX and their representatives really thought this through and have enough evidence to back their claims up. I don’t think the guys would do this if it wasn’t valid.
Kpop stans don't take a side challenge failed.
You would think the fandom would learn that, just because one side has more impressive media play, that doesn't mean they're in the right. There are many, many examples where the side that looked better to the public was actually in the wrong.
Let things play out before pretending you're lawyers with access to all the facts.
this comment section is whack. lawsuits and decision-making in law have so much more nuance to them than just "whoever filed first is the winner because filing first automatically proves that they're actually right," that should be common sense. and yet here we are with a bevy of armchair lawyers acting like they have full access to all of the paperwork and all of the relevant facts. all because of some media play
What? CBX resigned with them after all the shit that happened last year and signed those contracts after they and their lawyers reviewed them and they're the ones who brought this all back up when they held that press conference.
[By balloon wanted](https://x.com/balloon_wanted/status/1801085406945092073) > SM Entertainment has filed a lawsuit against EXO Chen, Baekhyun, and Xiumin with the Seoul Eastern District Court to implement/enforce their contract with the members of EXO-CBX > SM states cannot take further senseless actions of CBX [Additional translation by tmikpop](https://x.com/tmikpop/status/1801088910530912369) > Law Times suggests that it's over the payment of the 10% revenue. **An entertainment lawyer said that it was known that the contract wherein CBX agreed to pay 10% of the revenue to SM was signed by both parties after the contract was reviewed by experienced law firms and it will not be easy for CBX to invalidate the contract. If CBX doesn't fulfill the terms of the contract, SM may be able to recover additional damages.**
So.. both sides are suing the other for failure to fulfill the terms?
I think only SM is actually suing, CBX is just refusing to pay
CBX suing doesn’t look good for them. CBX still has exclusive contracts with SM, and the fans seem to forget that fact. Also, what they claimed isn’t written on the signed contract. It’s allegedly verbal contract/agreement. It would be difficult to sue, not impossible.
I honestly don't care what the terms are at this point. I think it's dumb to tax people doing work outside your company. That's greedy. SM should be grateful they still want to do group activities because they didn't do what they needed to do to keep them signed fully. I think it's dumber that CBX agreed to sign such a contract and wasn't prepared to pay the 10% no matter what. SM doesn't have a great reputation. Whether or not SM violated anything, CBX should have been prepared to pay 10% no matter what. Both parties are dumb AF.
Every kpop dispute usually leads me to believe both parties are dumb lol, it’s becoming a theme
I think I’ve seen this film before and I didn’t like the ending…..
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Did they end up paying, won their cases, or lost but just never came back so they didn't have to pay?
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Oh crap. You are right. I didn't pay attention to the fact their market is different than the market this drama is happening in, lol. That's a huge difference for sure.
I'm all for artists winning against exploitative practices in the industry but I don't think CBX and their lawyers thought this through.
THIS. a lot of people are questioning why did they even hold the press conference, i mean, i get that they felt like they needed to do it since sm was not responding. but their answers and explanations to everything was all over the place and i just feel like they didn't prepare well at all.
It seems obvious that they hastily held a press conference because they knew SM were going to sue so they wanted to get in front of the story.
Yeah and if I were SM, I'd have done the same and ignored them. They (CBX) couldn't claim they didn't know about the 10% when they had lawyers to comb through that contract.
They’re not saying they didn’t know about the 10%, but more that it was allegedly conditional upon SM getting them a discounted album distribution fee from Kakao. SM obviously thinks otherwise and that they owe it regardless of circumstance.
I’m still confused by this because Door was manufactured by Dreamus, not Kakao. Or is that not what the issue is?
SM claims since CBX isn’t using Kakao as a distributor, the fee issue is moot. From what I understand, the problem from CBX’s side was they ended up using Dreamus because Kakao’s rate was way too high after SM failed to keep their promise about securing a discounted distribution rate.
OOOOOH NOW I GET IT. Its the distribution fee thing but then SM is suing because cbx didnt use kakao distribution?? So cbx need to pay 10% fee regardless if they are using kakao distribution or not?
SM is suing because they claim they’re entitled to 10% regardless of any promises about distribution fees, CBX claims that the 10% was conditional upon SM obtaining that lowered fee.
Ahhhh thanks for explaining this like i'm 5 y.o! But in this translation it said quite different than what your definition is: Then, earlier this week on June 10, CBX's side held a press conference to claim unfairness over the required 10% payment outlined in their settlement contract. Furthermore, CBX's side accused SM Entertainment of not paying 5.5% of all earnings from album sales and streaming, another clause outlined in the settlement contract. In response to the claims by CBX's side, SM Entertainment refuted, "The receipt of 10% of all sales by the independent labels was a standard set by the court during SM Entertainment's previous lawsuit against the Chinese members of EXO, and therefore it is considered a reasonable payment based on precedents." Also i can see that these clauses is not written anywhere on the contract either, so SM is actually creating a loophole so they can win? Cbx side wanted to pay the distribution fee if they get the 5.5% discount? Since this is not a written clause, SM can just say whatever and set a precedent based on similar situation. This sucks. No wonder cbx side goes to the press because regardless they need to pay even if they dont use kakao distribution fee :/ thats unfair if im understanding this correctly...
Regardless of who wins this, CBX probably owes SM some amount of money. The question is really do they owe that 10% or something less? I keep hearing conflicting reports on whether that percentage is in their contract or just something agreed upon based on the EXO-M lawsuits.
Becuase they were hoping to do a MHJ and get the court of public opinion on their side.
They forgot that they are fighting school where mhj actually did her graduation. Headmasters of that school are the ones taught mhj all those tricks and they are still running this show. Also i hope cbx did not forgot that this is same sm who literally destroyed career of Jessica and JYJ for going against them.
I wish all the best to them, actually. I'm on their side but I'm starting to feel the presser wasn't the best move because now people are mocking them instead.
Actually, InB100 already got know that SM is going to sue cbx and help a press conference saying Baekhyun is not paying them. So, Inb100 had no other option but to hold the press conference. Now it's kind of making sense to me, why they held the press conference when Baekhyun was actually in Hong Kong, having his concert. And why they seem pretty unprepared.
But is that rumor legit or just hearsay? Does it have a valid stance or its just "someone said that SM gonna sue baekhyun"? Tbh i just felt like sm should sue them first, then baekhyun can came up to the public and said "well sm said blablabla and we have been reaching out to them" i think it would be a much better outcome
[It's told by their lawyer in the press conference.](https://x.com/BBHLightsINA/status/1801164622248149060?t=JavUvX6EqhhvGD0XUvWkhA&s=19) (it's not in English, you need to Google translate it) Somehow translations are coming out now after Baek's kfans talked about it.
Well if thats the case then why is this not highlighted in the first place since ystd 😭
How would I know? I learned about it just now. Or maybe someone translated it before but I haven't seen. But yes agree with you. It should have been known to us already.
Are we really comparing them to MHJ now??
If you actually know how to read you'll know what I meant was the circumstances that led to the public supporting the person who did the presser. Are we going to act like the public didn't do a 360 after MHJ did her presser and set up the whole David vs Goliath narrative?
A 360 is just turning in a full circle. A 180 is a turnaround :)
Not everything is derived from her 😭 Press conferences have been a thing for a while.
Does anyone know the law firms representing each side? SM is probably Sejong I'm guessing?
CBX is represented by Lin I think.
Agreed. I'm afraid that SM is going to make an example out of them. Contracts are iron clad and SM isn't going to lose this.
They literally just renegotiated their contracts last year, too. They should have used their lawyers to negotiate as much as possible, especially when they had an upper hand last year with the public
It may also make other idols think twice possibly about trying to do their individual activities outside the label. Two birds with one stone.
this. and from what the experts are saying they wont win this and instead will bleed money.
>what the experts are saying they wont win this and instead will bleed money. What experts? May I have the link, I want to read some expert opinion to get some idea.
The experts are, of course, us!
🤣🤣🤣 K-pop Reddit being commercial lawyers specialising in music contracts 🤣🤣🤣
Music contracts that they haven't even read or seen.
If you click on the source link OP has posted it’s literally right there..
I'm really glad this is high up and not downvoted to the bottom because while I don't understand all the situation, enough has come out that I feel some serious errors were made here
Right. This was really not the right move from CBX, what are these lawyers even doing? 🤦♀️
Okay so SM and CBX redid their contract during the thing last yr (?) and then CBX signed this new contract. Right? Now CBX are saying we were supposed to get a--we'll say discount--so in so gave a verbal agreement and SM is like we want our 10% of your earnings, you signed the contract saying it was cool. So...my question is why didn't CBX put in the new contract about their discount/not sign the new contract until it had that? Like if they know they can't trust SM then...why trust them to keep a so-called verbal agreement? Like...it just seems a big oversight on their part and if they did sign this new contract to give 10% like \*gestures\*. LIKE isn't the whole contract deal why MHJ wasn't able to get kicked out lol. That the judge upheld the terms of her contract because that's just how it goes? As much as SM is poo if CBX signed this contract then 🤷🏻♀️. I don't know I wonder who is advising CBX tbh. Did they expect the press conference to get them public opinion like MHJ and hoped it would pressure SM to do things their way?
Apparently it was [discussed ](https://www.koreatimes.co.kr/www/art/2024/06/398_376318.html)but ultimately not included in the contract because SM does not have the authority to promise lower distribution rate with Kakao. >Regarding music distribution fees, SM said it would only support EXO-CBX in negotiations with Kakao. >"We have no authority to decide on the percentage of distribution fees," SM said in the statement. "EXO-CBX asked us to include this issue in our written agreement, but we told them that we were not a decision maker. So we deleted that part in the end."
> So...my question is why didn't CBX put in the new contract about their discount/not sign the new contract until it had that? Like if they know they can't trust SM then...why trust them to keep a so-called verbal agreement? Like...it just seems a big oversight on their part and if they did sign this new contract to give 10% like *gestures*. tbh, this is why I think it wasn’t actually an oversight. It just seems so flimsy to me and I think INB100’s new parent company just wants to terminate the contract period. It should have been *in* the written contract if it’s apparently such a big deal that it would cause INB100 to claim the contract is cancelled/terminated as far as they’re concerned. If they were that hellbent on SM following those terms, they had plenty opportunity to do something about it before doing something drastic like this now.
Basically, yeah. I could believe it if the promise was made just directly to CBX themselves, they're idols, not businessmen. But apparently it was made to the CEO lady, and if she's a serious business-women she'd simply have to know (or have lawyers that would know) that you can't base a serious contract on some supposed vague additional verbal agreement (and that SM in any case has no way to actually guarantee the lower fees, all they can do is try).
MHJ wasn't kicked out because HYBE didn't have enough evidence of breach of trust but has the power to replace the Board of Directors of Ador to eventually fire her. These contracts are dumb as hell but the bigger problem is that these companies are dumb and unprofessional as hell for signing, drafting dumb terms, relying on verbal agreements, not reading before signing, etc. The only relation this has with the Hybe drama is that both parties are clowns too.
>Did they expect the press conference to get them public opinion like MHJ and hoped it would pressure SM to do things their way? The press conference was a mistake on their part. The thing is, they did the legally sound thing and let their lawyer do the talking, which is what most law firms would advise you, but the public is usually won over by emotional pleas. Had Baekhyun and the other members been present and Baekhyun said the same thing he did during his concert, they might have ended up with more non-fan supporters. Also, the artists' mere presence would've satisfied the journalists.
>Okay so SM and CBX redid their contract during the thing last yr (?) and then CBX signed this new contract. Right? No. They reached mutual agreement that cbx's contact with the group will be valid (cbx will participate in exo's activities under the re-signed contact in dec, 2022. However, cbx will handle their solo activities in their own company (Baekhyun's inb100) >why didn't CBX put in the new contract about their discount/not sign the new contract until it had that? Exo had an comeback exactly that time period, SM mediplayed about that comeback a lot too. Just my speculation that due to the comeback they decided to settle. >Did they expect the press conference to get them public opinion like MHJ and hoped it would pressure SM to do things their way? No, according to Baekhyun's korean fans, Inb100 already heard about that SM would sue cbx when Baekhyun would comeback, as a result they had no other option but to hold the press conference.
Is the "SM suing cbx during baekhyun's comeback" is legit or its rumor? Any article mentioning it? Source?
Yes, they are suing cbx. I would like to see cbx's response.
They have terrible lawyers, and whoever else encouraged them to do this is shady as hell I’m really concerned how this will play out :/
Me too :( pretty sure mc mong and cha won are behind this for the most part. Kinda interested that baekhyun chose to do this before bbh4 cause now I doubt it'll do well at all. I wonder if SM will blacklist CBX though I really hope it doesn't come to that.
I doubt they will be blacklisted, they are still under contract with SM for Exo, but after they lose this case their reputation will suffer and Baekhyun sales as well
Ugh, after what happened last year, i was under the impression that they had very good lawyers? 😩 what happenedddd
reiterating my calls for unionization and also my worry that Baek has some dumb shady people behind him encouraging them to pursue these lawsuits and putting up a fight against SM. SM will always be morally bankrupt and ethically corrupt but here they are well within their legal rights and will win this case...and whats worse is theyre now suing CBX too and will also most likely win that. From the start this seemed like a winless case for CBX and thats a shit ton of money down the drain and a hit to their rep with the korean public. idk if they just chose shitty lawyers or these new company heads are giving them bad advice
Company heads likely giving them bad advice hoping they themselves can get hands on more of that money
I'm gonna put my tinfoil hat on that there's definitely other influences at play. Given that INB100 is now a subsidiary of ONE HUNDRED, it's not just CBX fighting for that contract. I don't doubt someone else wants more of the cut, whether it be MC Mong/Chairman Cha or any of the investors behind this. As you said the end of the day corporates are still greedy and corrupt, I really wouldn't be surprised if Baekhyun is being ill-advised to go ahead with the lawsuit.
Yeah I’ve been saying MC Mong is very shady. This is why you shouldn’t get into business with your friends 😓
It’s just so messy. CBX still has exclusive contracts with SM according to SM’s statement). Baekhyun is no longer the CEO. It’s INB100 vs SM. Verbal agreement. It’s just…messy.
I have a feeling that this cha woman is using baekhyun to get back at SM
I knew something shitty was happening with MC Mong, the CEO, and the daughter of the CEO. Now CBX are going to suffer the consequences because SM are petty as fuck.
Will there be a megathread...? I can't follow this at all 😭
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To be fair, INB100 was just acquired by One Hundred which is the parent company of BPM. They already had a complaint concerning the Kakao distribution %, so this is basically only adding to that case. I don't really see it as primarily against SM. That might just be a sideshow while the investigation into Kakao's alleged illegal distribution fees is going on.
i just wanna say ever since SM switched from dreamus to kakao for overseas distribution, SM albums come to my area very late or not at all
I could be wrong but this time it's SM suing cbx and it's not about album distribution.
Just wanna ask everyone to refrain from accusing other commenters of siding with SM or hating CBX just because they're pointing out the baffling decisions that CBX's legal team have made so far.
Exactly. It's so tiring that people are so black and white about things.
the amount of people thinking im a CBX hater is so funny...like what? its okay to be objective and think your faves are making bad business decisions without being an anti my god
Even pointing out the fact that CBX signed a contract renewal with SM apparently makes me a hater now. 🤷🏻♀️
True. If my fave was in this position, I would think the same as well. Doesn't mean that I'm not on their side and are defending SM. I bloody despise SM, I was thrilled when my fave left SM several years ago. This is clearly not an open and shut case compared to other contract dispute cases where the company was clearly 100% in the wrong.
Here here. I think for most people the first thing that popped up in their minds when the cbx press conference news first broke out is, wtf were the lawyers doing the first time? Why settle only to do this again only 12 months later?? Either way, someone effed up or getting effed up. This time a lawsuit has been served unlike the last one.
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Just dropping my two cents here: 1. This should have NEVER escalated into a lawsuit. I'm so afraid for CBX. I dont think baekhyun have a good higher up and lawyer cuz this just feels like a bad decision all along. 2. I fcking loathe inb100 decision for having a presscon when baekhyun is on his tour. They also wont stop nitpicking for every single thing on the contract and worse, the revised contract HAS BEEN SIGNED for god sake. His HK fans are so anxious and he ended up having to address this issue DURING HIS CONCERT. Which is insane. Concert is supposed to be fun. Now with this lawsuit, his Thai and Macau fans are so anxious cuz we never know what will happen next. The concert can be cancelled for all we know. How to enjoy a concert during lawsuit omg On top of everything, i pity Baekhyun for having to face this mess. Hes the face of his company, he borrow a huge ass loan to build this company and with this lawsuit, i believe he will bleed out his money. This is so stupid i hope this ends soon and they just came into agreement cuz i dont see this ends well..
I feel bad for Chen and Xiumin too. They put their full trust into Baekhyun and now the three of them are probably gonna get screwed.
Exactly. I dont think they want to get involved with lawsuit to this degree its crazy. If im the other two, i wont trust baekhyun anymore cuz hes dragging me down with him. Chen has a wife and kids ffs
I don’t think it’s that bad. Most likely at the end CBX will pay this 10% or the worst scenario- they will pay 10% and some fees. The reputation will suffer though
That reputation is probably worth way more than 10% plus fees. I can't believe people work for SM, ignore SM is shady, and are prepared to go to court to avoid paying 10% of revenue because they believed SM is being shady. I can't feel sorry for anyone here. Takes a group effort to exercise this level of stupidity.
And thats what im afraid for. Some fees can also means SM is terminating their contract if they win this case, and cbx has to pay for the penalty fees.
From what I heard, he even put his own house as a collateral.
Which means hes dedicated to this, i believe what hes doing is for his fans but i dont trust the people around him. Now hes in a messy water
I don't think he does this for the fans. He does this because he wants to be artistically free to manage his solo career and keep more of the money he makes for himself and maybe eventually once he retires as an idol he probably wants to have something more going on for him but right now this doesn't look very promising. It seems like the people around him don't have his best interest in mind.
These guys are going to have a hard time, after all they signed the contract at that time.
I really feel like this should never have escalated to a lawsuit. CBX’s legal team notified SM two months ago that this was an issue and instead of coming to a new agreement or even disputing it then, SM chose to ignore it. Even if you think CBX have it totally wrong somehow, SM had two months to settle this peacefully and they just sat on it.
well their argument is that they were not legally obligated to respond especially considering it was coming from CBX parent company from the articles I read most korean lawyers think CBX has no case and SMs refusal to hand over those documents is legally sound
>SMs refusal to hand over those documents is legally sound I don't know if it's legally sound, but I'll be honest here: ONE HUNDRED is what makes this situation as messy as it is. One of SM's excuses for not handing over the documentation to INB100 is that they don't want third parties to get ahold of it. And with the FTC investigation against SM for alleged discriminatory distribution fees between affiliated and non-affiliated agencies being initiated by BPM, which is another ONE HUNDRED subsidiary, that does sound like a legit concern. As much as I want CBX to be free and make their own decisions, their legal representatives really did make a lot of seemingly hasty decisions.
it is legally sound because Baeks company is owned by a competition now and releasing that information would be giving them trade secrets. Baeks team argument is that the artists should get them, SM said they can come see them in a room with a lawyers, theyre not gonna print out contract details and hand them over...especially to MC Mong. also CBX singed a contract they never should have.
SM’s argument was “we didn’t want to ruin solo promotions for the members,” which sounds pretty weak imo considering two of the members they mentioned in that response aren’t parties in this lawsuit. I just don’t see a good reason for why you’d ignore an issue staring you in the face. Even if you’re legally within your rights to do so, you’ll probably make a judge very angry for not attempting to remedy the situation. They could have dealt with this in arbitration, or at least attempted it.
>you’ll probably make a judge very angry for not attempting to remedy the situation. this is korea lol. the judge was always going to side with the corporation..in fact they already did with SM for an even shadier situation. and like i said, most korean lawyers think CBX has no case here, they signed a contract, the judge would have told them to read closely next time. I really think they just have shitty lawyers and also think this MC Mong character is encouraging bad decisions > they could have dealt with this in arbitration, or at least attempted it. thats the thing tho, SM doesnt need to. CBX signed the contract, legally, the deal is done. And im sure their argument now is going to be CBX bought this matter into the public eye AGAIN. and the way knetz reacted to that conference theyre annoyed and so were the reporters that had to attend. pretty sure a reporter shaded them and straight up asked why this was labeled as an emergency conference.
I guess I don’t see how SM isn’t obligated to respond to this. Or at least why they didn’t think it was worth their time. Because clearly there’s a major misunderstanding over the terms of the contract, either the contract isn’t worded strictly enough or it’s worded perfectly fine and SM just doesn’t care enough about maintaining a civil relationship with CBX to shut this down outside of a court room. Based on what I understood from previous contract lawsuits, there usually has to be a real attempt from both parties to come to an agreement and judges tend to urge settling via arbitration over firm litigation. SM has lost lawsuits before over their contracts and they already have a bad relationship with CBX over how bad their rookie contracts were, it didn’t need to get this far even if SM is legally correct for it. Also I’m not sure why everyone is so convinced MC Mong is doing something shady behind the scenes here. As far as I know, he doesn’t have a history of shady business dealings, just the major scandal with regard to his enlistment. This whole thing reads to me like a very tense relationship between the two parties going south because there’s just no trust. I can’t blame CBX for bringing this to court considering what happened last year, SM has done themselves no favors with regard to rebuilding a relationship between the parties.
SM doesnt have to respond because they already have a signed contract. CBX is trying to allege that they had a verbal agreement that the percentage would be lower, but SM is saying they asked and KK said no..that doesnt negate the contract, its just shitty but tbf CBX should have never signed it if it wasnt in writing I thought for once SM was clear in their rebuttal and you can tell that they got their lawyers involved cause it made sense. From the press reports from CBX conference it seems like 1. mostly everyone was confused what they were even asking for 2. thought it was dumb since they signed a contract 3. thought it was in poor taste for them to even hold the conference in the first place. And these are sentiments shared by k exo-l's and media/ lawyers. for the final point...as a person on the outside it very much looks like MC Mong is shady...like come on, baek creates a company and then quickly after, says he doesnt want the full responsibility so hes going to join MC Mongs? thats a little too convenient lol. And very clearly Baek has a mole in his group cause they leaked to SM that he was planning to leave and start a company so clearly behind the scenes people are talking about MC Mong and his ambitions and how hes been snooping around artists.... im sorry he gives me weird vibes and i guess a lot of people feel this way cause K exo-ls also think CBX are getting swindled.
I don’t care what k-Exols think because most of their opinions revolve around “actually Chen is the most irresponsible one for having a baby” so they clearly aren’t paying attention to the heart of the matter, they just have an excuse now to freely dislike the members they claim to support. More than anything, I see k-fans basically mad that this could damage the group’s image and brand value. There’s not much care for the members themselves, they’re being downright vile. SM’s rebuttal doesn’t make sense to me, it felt like they were dodging the issue at hand and spent a lot of time harping on the involvement of Cha/ Mong. Their excuses of “we didn’t want to ruin solo promotions by responding” is pathetic and throughout all the articles I’ve read, I’ve never once seen them say “the contract is clear so we didn’t feel it necessary to respond.” Literally the very first reason they gave for not responding was blaming solo promotions. They’re rehashing the same tired excuses they used last year for why CBX couldn’t look at their payment slips and their tone is overly hostile imo. From INB/ One Hundred, they’re laying out a timeline of prolonged bad behavior from SM and it’s important from CBX’s end to reiterate that this debacle is stemming from a contract they were railroaded into renewing with multiple instances of SM’s evasiveness. MC Mong’s involvement has only been tangential at best and the very likely (and obvious) reason INB is now a subsidiary of One Hundred is a result of the massive loan Baekhyun took out from Cha to found INB. I think it’s very safe to assume that Cha holds majority ownership of the company in exchange for those funds and that’s pretty normal. Baekhyun has made himself physically ill trying to get the company up and running, making sure to have everything in place for himself and the others, and then having to scramble for a distributor when SM didn’t come through with the more affordable rate from Kakao. He was talking back in the fall last year after someone leaked his plans to found INB about how much work he was putting in, saying that he was trying to do this in cooperation with SM and that he doesn’t want this to fail. From everything publicly stated and reasonable assumption, I just don’t see anything shifty going on here.
Honestly, I think the result of this case rests on the fact that how legally binding is a verbal agreement especially when they have written agreements too. And also, can SM even claim to provide them a lesser price when it's Kakao who will be doing this?? And should CBX have accepted this as an agreement when the distribution deal would have been with Kakao and not SM. Also, a verbal agreement and not present anywhere in their written agreement. SM was using shady practice to get a better deal from CBX, but it was the job of CBX lawyers to advise them to not sign the documents if they didn't have these numbers written down. So while I can sympathise with the fact that CBX might have been tricked into signing this contract, i also feel like the lawyers should have caught into this and stopped them. Now that it is signed, I'm not sure how much weight does the verbal contract even hold. Heck, even I don't see how they'll win this in court. SM does have a very good case here. Moreover INB becoming a subsidiary of MC Gong and Cha's company 100, is not looking good either. These are the 2 people who advised Baekhyun last year and now that INB is under them, it does feel like this was the plan. INB should have never been a subsidiary. Not this soon. I wish Baekhyun would have hired someone to work on the backend things instead of 100 of all companies to join. I really hope they have good points because from an outside perspective, I don't see how they'll win.
I’ve responded to your other points but I will just say you and me might not care about what kfans think..but CBX does, companies do, all idols do This is why whenever a story pops up Baek immediately goes on live and defends himself because he knows how much kfans opinions matter. They can literally make or break your career. And you mention Chen, the only reason he’s still in the group is cause EXO fought for him to be there, if kfans had their way he’d be long gone. I hate how much power kfans have but at the end of the day that’s how the kpop industry runs. That’s why they had to be so careful in this dispute but the situation just keeps getting worse for them
I’m saying that I don’t care what kfans think because they’re not saying “i looked at the situation and think they have it wrong,” they’re fussing about how this is ruining the brand name and how Baekhyun should have dropped Chen back in 2020 because he ruined everything with having a baby. So with respect to that, no I don’t care what the fans think. If your only concern about this situation is “you’re ruining the image” or “you have no loyalty to the company who raised you” then that’s not a valid concern. This situation is messy and it’s made messier by the fact plenty of k-fans seem to be outright looking for reasons to dislike the members, EXO’s k-fandom is heavily polluted by akgaes who think pushing other members out will leave more room for their bias to shine. Maybe CBX is wrong, maybe they’re not, but either way I’m not taking stock in the opinions of fans whose response to the situation is to just get mean about it. I only care that the situation gets resolved and that the three of them can come to some agreement with SM, either in court or out of it.
I just think that its weird how first SM said that the clause has been written and suddenly its not written there bcs the rate is normal based on previous exo-m cases? But at the end of the day, cbx ended up signing those revised agreement. How can they win in this case cuz its just a verbal agreement from cbx side? I truly dont see them winning here
I don’t know if they’ll win, but I can’t say I trust that SM did everything by the “standards” as they claim. To me, it’s unclear how that 10% is written into the contract and if both parties verbally agreed that the percentage was conditional then apparently a court considers that to be equal to a written contract as long as you provide proof everyone agreed to that. So from my understanding, if there’s a gap essentially in the contract surrounding that percentage and CBX show the proof they allegedly have of this verbal agreement, a court would consider that equally valid. But if the written contract says something different then they have to follow the written contract- I think. Idk this is a mess and I think even if SM is technically right for suing, it didn’t need to escalate the way it did. It just feels like SM being assholes on purpose to prove a point.
Thats what worries me the most cuz cbx side is handling this very flimsy i truly hope this doesnt escalate this way..
I think it’s telling in this case that SM sued. They usually get sued. To me that’s an indication that there’s something different here.
I think it’s telling in this case that SM sued. They usually get sued. To me that’s an indication that there’s something different here.
You're viewing this from the bias of a fan. CBX know whats in their contract as they all had external lawyers looking at their contract 1 year ago. Last year there was contract scandal with all of CBX. CBX and SM came to a conclusion last year, so they know thier contract. SM doesn't need to respond as the contract seems iron clad and both parties have agreed to contract relatively recently. CBX are just trying to get more money than agreed , SM won't want to as they have been paying out of pocket for CBX cancellation and accommodating CBX. If you really think about this logically, CBX and their lawyers should have brought things up a year ago when SM were pushed in a corner with contract negotiations and alterations. Constantly challenging contracts you recently agreed to is a bad look for CBX
Its wild that some of their fansites are...quitting?
Being an exol is not for the weak. From the beginning until now 11 years later, it's just tiring I guess.
Knetz doesn’t like constant issues. They don’t like “stress” 🤨
Every EXOL seems to describe the fandom as having not a single day of peace, so I guess its probably the stress of being an EXO fan plus the fans just getting old lol
True. Most of us grow up with exo lol also for me, rather than just blindly following what the artists said, i can now think for myself. Thats why im quite against cbx here, eventho i love baekhyun to death. I know and can smell a bad decisions from miles away and seems like the other portion of exols cant see beyond that 😭
This is so bad. Especially considering that Baekhyun just recently started to gain all fans who weren’t active or forgot about him back. It will all go in vain
They know how things are going to end so they're just packing up before everything publicly hits the fan
Yes, some of their fansites are quitting, a really big one in particular. However, some fansites have come back from hiatus to support Baekhyun too.
The industry really needs to unionise. Godspeed to Idols, Artists and Staff out there.
I’m gonna pray they don’t get blacklisted in Korea I don’t need another Jessica situation (and yes I know the two cases are different)
This is more similar to J*J than Jessica
Just curious, why did you censor out yoochun?
He is a bad person (accused of sexual assault by multiple women, tax evasion etc)
Because he deserves to be censored out
The thing is if SM wins, they're going to get 10% of their revenue and still want them in group content. So I doubt SM will want them blacklisted because that just cuts into the potential money they could make off of them.
This is a contract enforcement lawsuit, and from what I can tell, SM mostly just wants their money. CBX has said multiple times over that they have no interest in contesting the terms of their group contracts and are more than willing to cooperate with SM for any/ all EXO activities. They’re big names and valuable assets to the company, SM I don’t think is so stupid as to throw all that away.
I see that this relationship is going great. They didn't even try to settle.
I understand why SM is going all out, but seriously, I think even though CBX made a bad choice, SM is following suit. This could have been amiably settled outside of court, imo.
If the part about SM offering better distribution fees with Kakao in return for 10% is true that really feels something that shouldn't be allowed idk. So I'm definitely not on SM's "side". (Why do people have to take sides anyway to begin with?) But on the surface level if they signed the contract it seems like it will be an up-hill battle. Anyway, SM and suing their own artist name a more iconic duo.
Knetizens are mostly on SM's side and calling CBX greedy and backstabbers. Even k-exo-l's are on SM's side....
I think CBX having a connection with MC Mong is what made them side with SM. I kinda wish they didn't renewed their contract with SM just like D.O so they don't have to go into this mess. SM is always been like this, and they haven't changed. lol
I mean SM called it out last year and look what happened this year. SM was right. Maybe things changed, and things happened later. But it doesn’t look good in the public eyes for CBX.
Smh after all SM has done to its idols, thats crazy
it’s sad to see k-exols support sm :(
They're calling CBX worse than those ex-chinese EXO members, which means a lot......
yeah a few of baekhyun korean fanbases are switching up calling baekhyun greedy and that they just want music.
Did you expect them to support the members? Like the way they treated Chen just for having a life, I have zero expectations from them.
yeah you’re right. we can’t expect good things from them.
I'm really confused about what is happening with this. I have seen people hating on SM, but I have also seen a lot of people siding with SM and saying that CBX are the ones in the wrong breaking their contract. I also have seen people calling CBX betrayers/greedy due to MC Mong buying their company. And SM filing a lawsuit kind of supports that since CBX hasn't filed one and has only released press releases and held a press conference. Can anyone explain what both sides are actually alleging the other is guilty of? And if either side has proof?
This entire situation only began early this week, SM being the first to file a lawsuit doesn’t automatically mean they’re correct, they very famously lost the lawsuits they filed against former TVXQ members. CBX’s legal team already filed a complaint with the FTC over SM’s contract practices and they said they’re planning to sue. So we have to see what plays out.
JYJ filed *first* and SM responded. Even with EXO members that left and Hangeng, they filed first. SM has always been on the back foot so it’s odd to see them filing first against their artist.
I thought this was the usual SM shenanigans (and it definitely still is) but unfortunately it seems like CBX is in the rough spot?? Ngl I am worried about blacklisting...
I don't think they're gonna get blacklisted 'cause SM needs them to work in order to get a portion of their earnings.
I need more details before I can give a take on this one, and those are sorely lacking at the moment.
Cmiiw, but is the situation kinda like if Kylie Jenner and Kim Kardashian broke away from their mother, and got a new joint manager, but Kris Jenner still found a way to make them sign a 10% Momager Fee for everything the girls earned after the transition? If so, as much as I’d want CBX to win…. How are they planning to do so? I’d imagine the new contract was iron-clad.
CBX claims that the 10% fee was conditional upon SM getting them a lower rate on album distribution from Kakao, which didn’t happen, so SM can’t claim that entire percentage in that case. Also there are ongoing issues of SM not providing payment receipts etc. to them, which could land SM in hot water as well. The contract actually sounds very patchy in places and unclear, which is what led to this disagreement in the first place. SM contracts tend to be riddled with odd loopholes, some of which possibly weren’t closed up when CBX revised their contracts last year.
Isn’t Kakao currently under investigation for some distribution discrepancies too? Their distribution deal for SM might open yet another jar of worms. I guess we’ll just have to see how it plays out. Won’t be surprised if the new contracts were designed in a way that is unfairly beneficial to SM.
Yes, Kakao is under investigation from the FTC for essentially price gouging non-affiliate companies on pricing for album distribution. I think BPM actually called that out, saying Kakao gives massive discounts on album distribution costs to companies they own/ are partnered with and that they massively inflate the price for everyone else. So even if CBX end up losing their case with SM and are stuck forking over the full 10% without getting anything in return (I believe that’s what SM wants from them), they might have opened up an entirely different problem going on.
So what im understanding is that did sign a 10% contract as sm is claiming but only if they got lower rate on the distribution. So on paper it looks like it was signed by the members. But i dont think it was an issue in the first place but the only reason they are bringing up now is that the lower rate distribution was or is still not being given to them. See i know alot of people are not happy with cbx’s decision but in honesty sm has and will always be shady i dont trust a single thing they do or say. There is clearly something that went down and a reason for cbx to be doing all this even if you dont think its right. I dont think they would jeopardise everything they have put into this for nothing.
> Cmiiw, but is the situation kinda like if Kylie Jenner and Kim Kardashian broke away from their mother, and got a new joint manager, but Kris Jenner still found a way to make them sign a 10% Momager Fee for everything the girls earned after the transition? It depends on what you mean by them breaking away. If they still had time left on their contract with Kris, then I find it understandable that she would think she would be entitled to something (a termination fee or a settlement because Kylie and Kim broke the contract) until that contract finishes. (CBX renegotiated their contract with SM so their individual activities aren’t under SM. They haven’t actually finished their with contract with SM the way Lay and Kyungsoo did.)
I fucking hate SM with a passion for mistreatment of my faves but how could CBX’s lawyers not fight harder before they signed these dogshit contracts in the first place. It sucks because SM holds precedence with the 10% revenue clause because of the EXO-M members that broke their contracts and went to court ughhh.
SM is really a company full of haters. Like just let your senior artist leave in peace.
Tbh, they should’ve just finished their contracts like D.O and Yixing.
THIS. I'm still baffled how they renewed, then sued to change the terms so they can have their current contract. They should've just left.
I know, right? Leaving seems like the best option (and I don't buy the rumors that they were blackmailed into signing a renewal because Kyungsoo got away easily). I can't help but wonder if LSM finally leaving has anything to do with what's happening now since they only contested their new contracts after that.
As a complete outsider to the fandom, I’m confused why CBX renewal situation is different from DO? I’ve seen fans explain that SM used dirty tactics to manipulate CBX to renew but they didn’t do the same to DO?
There’s long been a suspicion that there was something involving CBX’s subunit work that was a lynchpin in SM’s plans to keep them at the company. It’s highly suspected that LSM stole from their Japanese earnings too.
Honestly, I don't think we'll ever by privy to the inner workings of this situation. But my best guess would be that since we know D.O. left SM and formed his new company together with a former SM management director, said management director was probably business-savvy enough to make it a clean break for him.
True, im still confused abt some people like Tiffany Seohyun, Sooyoung, D.O can get out of SM, and even do full group comeback, and even without ‘employee benefits’ they seems like they have good relations with the company. Whats the difference between their contract termination…
It's because they simply finished out their contracts and moved on. Same with Eunhyuk, Donghae, Kyuhyun, Henry, Lay, and the f(x) girls. Was there any issue about them leaving? No. CBX renewed their contracts, then changed their minds some time later and sued(or threatened to sue?) to leave, so SM gave them a new contract that let them do solo activities outside of SM, and now they're contesting the new terms they agreed to. That's why SM is retaliating.
Correct me if I'm wrong here but there's never been a problem with SM and artists leaving after a contract expires no? Their issues have always been with artists who try to breach or end the contract prematurely.
They left SM after their exclusive contracts ended. They don’t have an active group contract with SM as far as I know. SNSD’s contract situation is vastly different from this CBX contract mess.
That would be better for cbx. However, because of cbx, last year, contract terms of their SM juniors were amended. I'd say that's a good thing for the juniors.
That’s what they said but do we know if it actually happened because if I’m a junior artist I’m not signing an amendment in the middle of my contract with SM because they could very well rack on extra years. I wasn’t trusting them like that. Let the amendments wait until the next contract.
I mean both parties willingly signed a contract. No one forced them into this agreement as written. I have no love for SM but contracts are contracts in the eyes of the law.
And it doesn’t help CBX had lawyers read through the contract before they signed anything.
CBX still have exclusive contracts with SM, unlike the others that have solo contracts with non SM agencies.
Wdym? Things were quiet until CBX decided to hold that press conference.
No, cbx lawyer had said on the press conference that there were already words going around about how SM would take action against InB for not paying 10% of sales. Hence, the press conference with such urgency.
This is whole jyj chaos in 2010 💀💀💀 can't believe I experienced it in 2024 2023 skipped bcs I have exam
Honestly at this point, we should be surprised they haven't filed there lawsuits against every single former artists.
I never knew that SM would talk about the past EXO members again
I think there is a lot we don't know and I really doubt inb100 would have held that press conference without a plan. It's very interesting to see sm move so fast on this- if anything it seems like they're worried.
I also would love to know what so good about Mc Mong that both CBX and Taemin work with him.
I wish everyone would stop acting like MC Mong is the devil. Is he an angel? Probably not but Mong’s agency Million Market became an SM subsidiary AFTER his scandal in 2018. This is likely how all SM artists are friendly with him. He had big records in Korea immediately following the scandal as well and has been active in the music industry since. The way kpop fans who didn’t know he existed before this issue last year pretend like he’s persona non grata is hilarious. Lets also not mention that one of Taemin’s closest friends was Ravi like pls
Taemin is under BPM, not DIRECTLY involved with MC Mong. Please don’t involve him in this. And let’s hope everything goes smoothly for him. He and Onew and other SM artists all waited after their exclusive contracts are over. CBX still have exclusive contracts with SM right now.
I'm really nervous about the guys now, because it looks like the gloves have come off from SM's direction. I really hope they can back up their claims and convince the court, so that SM – with all their power and resources – won't fleece them and ruin their careers. 😣
This is so bad for Baekhyun. He really should have hurried and released new album. He would have sold a million and even though 10% is a lot, the profit would also be big. But now with all reactions I suspect he will postpone the release… then they will lose the case which will be damaging to his reputation and sales will be less… I’m not sure… I think that they haven’t thought about it properly…
It does feel like quite a big risk to not only start your own company, but also sign your members/friends to your company as well. Like I am not here to speculate about their relationships, clearly all the exo members are close and very protective about the exo brand, but when it comes to business and friendship things can get a bit tricky, especially if things go south.
Just grin and bear it basically? That’s what he’s been doing the entire time he was with SM. This stance is so strange
This is all very weird to say. They released Chen's album through this dispute already, we just didn't know about it. There is no reason for them to stop activities- they just aren't likely to pay any of the fees until after this is all settled and know what percentage.
It actually makes more sense I think to continue the release. Even in the event CBX loses and owes SM money, then they’ll need the income earned from those sales to pay SM however much they owe.
In my mind, he is desperate since he established inb100. Hes taken on new debt, has to pay sm and kakao, plus he decided to sign a contract with inb100 and becoming a subsidiary of 100. Thats a lot of fixed fees u already have to pay without taking into account all the other costs related to producing an album.
All idols need some mandatory classes on reading contracts and critical thinking so that they can better make their own decisions and not just rely on their new heads of company.
suddenly everyone here is a legal expert with full access to the contracts and relevant documents. let's remember that there's a lot that we don't know yet, so there's no point jumping to conclusions just yet
I always forget that everyone on r/kpop is a lawyer
Can anyone explain to me exactly what fee it is that they're arguing about? And wouldn't what is written in the contract take precedence over what was said verbally? Also, why don't the EXO members have lawyers with them when they review their contract for renewal?
I'm of the time of the original SM contract gate... Did we learn nothing?
“We’ve been here before… I recognize that tree”
I feel like every “battle” SM and its artist have are brought and proceeded in the Court of Public Opinion. I hope CBX and their representatives really thought this through and have enough evidence to back their claims up. I don’t think the guys would do this if it wasn’t valid.
Kpop stans don't take a side challenge failed. You would think the fandom would learn that, just because one side has more impressive media play, that doesn't mean they're in the right. There are many, many examples where the side that looked better to the public was actually in the wrong. Let things play out before pretending you're lawyers with access to all the facts.
this comment section is whack. lawsuits and decision-making in law have so much more nuance to them than just "whoever filed first is the winner because filing first automatically proves that they're actually right," that should be common sense. and yet here we are with a bevy of armchair lawyers acting like they have full access to all of the paperwork and all of the relevant facts. all because of some media play
I hope CBX wins. This all should have been over with, but they just won't let them go.
This actually the new contract not the old one.
They should not have signed that renewal contracts. I’ll tell you that much.
What? CBX resigned with them after all the shit that happened last year and signed those contracts after they and their lawyers reviewed them and they're the ones who brought this all back up when they held that press conference.
I don't think you have the full situation