Friday, March 18, 2016

Courts question SM on why profits to Kris and Luhan were so unevenly distributed

Former EXO members Kris and Luhan's lawsuits against SM are still ongoing, with neither party showing any signs of making compromises. 

The third plea date for Kris and Luhan's lawsuits for the nullification of their exclusive contract took place at Seoul Central District Court on March 18. 

Kris and Luhan's legal reps stated, "The main issues are whether the exclusive contracts are valid or not, whether SM defaulted, and whether the exclusive contract was fairly drafted." 

In retaliation against the claims made by Kris and Luhan's legal rep, SM provided documents confirming the settlements which were disbursed to Kris and Luhan back in 2013. 

Kris and Luhan's attorney claimed, "[Kris and Luhan were originally supposed to be paid once every six months. However, SM couldn't follow through with the promised timing so [the payment] was disbursed once a year."

The courts also questioned SM why the profit distribution between the company and the artists differed so vastly for domestic and overseas promotions, probing, "In the case of domestic [promotions], profits distribution [for the artists] are fixed at around 3~5% of sales while the net profits for songs are fixed at 10%, but distributions [for overseas promotions] are 50~60% of net profits. What's the reason for such a big difference?

SM reportedly answered with, "We will look into it and submit [our findings] in writing.

Kris and Luhan's side have requested a final plea date saying they have more evidence to submit. The plea date will take place on April 8 at 11:30 a.m.
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