Chenbaekshi counters SM lawsuit, "We will file a lawsuit for settlement, make it clear in court”
Chenbaekshi counters SM lawsuit, "We will file a lawsuit for settlement, make it clear in court”
INB100, the agency of the group EXO's unit Chen Baeksi (Chen, Baekhyun, Xiumin), issued a strong statement saying that it would file a lawsuit for settlement in response to the lawsuit filed by the former agency SM Entertainment (hereinafter referred to as SM).

INB100, Chenbaeksi's agency, made an official statement on the morning of the 14th regarding SM's lawsuit, saying, "At a press conference on the 10th, we raised concerns about the unfairness of SM's actions of demanding 10% of sales while not keeping its promise of 5.5% distribution commission. “I pointed it out,” he said.

The agency claimed, "At the press conference, we actively proposed an agreement that would pay SM's assets such as music and names in lieu of 10% of sales, but SM ignored this." They then criticized, saying, “SM did not respond to the negotiation plan and immediately pulled out the fearsome sword of legal action.”

Regarding the lawsuit, INB100 said, "As SM filed the lawsuit first, we will disclose everything, including last year's negotiation process, and take active action. Regarding the settlement, which we always had doubts about, we are filing a lawsuit against SM to claim the settlement amount." “I will do it,” he said.

Next, INB100 said, "Through the relevant litigation process, we will claim our legitimate rights by receiving accounting and settlement data stipulated by law and exclusive contract. It will also be revealed in court that SM's settlement system is incorrect. And the unfairness of the exclusive contract. He predicted a fierce legal battle, saying, “I will file a complaint with the Fair Trade Commission to receive a fair legal judgment.”

In addition, INB100 said to CBX's fans, "We are truly sorry for causing anxiety and disappointment due to the same problem as last year," and added, "We will minimize our statements in the future and work to quickly resolve this situation."

Previously, on the 12th, SM filed a lawsuit against INB100 to the Seoul Eastern District Court requesting performance of the contract.

Chen Baeksi renewed his contract with SM, but experienced a conflict in June last year when they demanded the submission of settlement data. Meanwhile, the conflict was resolved by agreeing to pay 10% of sales as royalties to SM, but the problem arose when CBX side claimed, "SM is not keeping its verbal promise to apply a 5.5% commission rate for album and music distribution." emerged again.

SM said, “Our exclusive contract with Chenbaeksi is still valid,” and added, “While allowing individual activities through a private corporation, Chenbaeksi signed the agreement themselves by paying 10% of the sales of the private corporation.” “I did,” he countered, telling them to fulfill the contract.
Below is the full text of INB100’s position.

Chen Baeksi would like to inform you of our position on the lawsuit filed by SM and our legal response as follows.

1. SM’s answer was a lawsuit.

On the 12th, SM filed a lawsuit against us.

At the press conference on the 10th, we pointed out the unfairness of SM's action of demanding 10% of sales while not keeping its promise of 5.5% distribution fee.

And we asked again what SM's position was on our comments. Also, at that press conference, we actively proposed an agreement in which we would pay usage fees for SM's assets such as music and statements in exchange for 10% of sales, but SM ignored this.

In the end, SM did not respond to our negotiation plan and immediately took out the fearsome sword of legal action.

2. We will do our best.

Since SM filed the lawsuit first, we will disclose everything, including last year's negotiation process, and take active action.

Additionally, regarding the settlement, which we have always had questions about, we will file a lawsuit against SM to claim the settlement amount. Through the relevant litigation procedures, we will claim our legitimate rights by receiving accounting and settlement data as stipulated by law and exclusive contract. It will also be revealed in court that SM's settlement system is incorrect.

And we will receive a fair legal judgment regarding the unfairness of the exclusive contract by filing a complaint with the Fair Trade Commission.

3. A word to fans

To our fans who always send us love and support and who should always receive only happiness, we are truly sorry for causing anxiety and disappointment due to the same problem as last year.

Going forward, we will try to minimize statements and resolve this situation quickly.

Additionally, we promise to remain as Chen, Baekhyun, and Xiumin, who will forever be able to share the precious memories we made with you.

Thank you for taking the time to read this long article. I'm sorry for making you feel more than necessary again.

Lee Min-kyung, Ten Asia Reporter 2min_ror@tenasia.co.kr translated by google