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EXO Members Sued by SM Entertainment Over Non-Payment of Royalty Fees

EXO band members have been hit with a lawsuit by SM Entertainment over a royalty fee for intellectual property rights SM claims they haven't paid.

As reported by the Korea JoongAng Daily, SM filed a civil suit on Wednesday (June 12) against Chen, Baekhyun and Xiumin — who are also known as the trio EXO-CBX — demanding payment of a 10% intellectual property royalty fee it claims the stars have been evading for two months. In the release, the company claimed the 10% intellectual property fee was established in court mediation when previous EXO members exited the group while still under contract — specifically Kris Wu, Luhan and Tao, all of whom left between 2014 and 2015. SM also alleged that the stars’ contracts with the company are still valid and that the trio benefits from the EXO brand but are not fulfilling their contractual obligations, despite the agency acting in good faith with the lower distribution rate.

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