The conflict between EXO's unit ChenBaekXi and SM Entertainment regarding intellectual property (IP) usage fees has left fans feeling weary and frustrated.
Since INB100, the independent label representing ChenBaekXi, held a press conference accusing SM Entertainment of unfair treatment on June 10th, tensions have been steadily rising.
INB100 alleged that SM Entertainment initially agreed to reduce album distribution fees by 5.5% but failed to follow through, instead demanding 10% of individual activity revenues such as album sales, concerts, and advertisements, which the label deemed unjust.
The dispute dates back to last June when ChenBaekXi notified SM Entertainment of their intention to terminate their exclusive contract, citing issues with receiving settlement data and copies of settlement grounds. After overcoming various obstacles, SM and ChenBaekXi managed to reach a resolution that allowed the members to pursue individual activities.
However, tensions reignited when INB100 was absorbed into the subsidiary 'One Hundred,' prompting suspicions of tampering that SM Entertainment had previously raised. Fans, eagerly awaiting new developments from EXO amidst these disturbances, are now showing signs of exhaustion. Many had high hopes after hints of a winter album preparation were dropped during the group's fan meeting in April.
Public sentiment has shifted significantly with reports surfacing that ChenBaekXi allegedly did not pay IP usage fees to SM Entertainment for approximately six months.
In online communities, voices calling for ChenBaekXi's removal from EXO (Suho, Chanyeol, D.O., Kai, Sehun) are growing louder. Fans argue, "SM Entertainment created both the group and the songs, they should be compensated," and express frustration with statements like, "Starting over without their name or albums seems appropriate," and "Expulsion is warranted from the start of this conflict, tarnishing the group's reputation."
Following SM Entertainment's filing of a performance claim lawsuit against ChenBaekXi on June 12th, ChenBaekXi's representatives announced on the 14th that they would counter with a settlement claim lawsuit against SM Entertainment, bringing further uncertainty to the resolution of this ongoing conflict.
Source: (1)