NewJeans and ADOR’s Contract Dispute: What is the Issue?

On the 28th of last month, the popular girl group NewJeans announced the termination of their contract with their agency, ADOR, and the conflict between the two parties continues. NewJeans claimed that ADOR failed to fulfill their contractual obligations and declared the contract terminated. In contrast, ADOR rebutted, stating that there was no breach of contract and that the agreement remains valid. In this situation, the legal community is suggesting that NewJeans might file an injunction to suspend the exclusive contract with ADOR.

At a press conference, NewJeans stated, “We requested ADOR to rectify the breach of obligations, but no rectification was made within the deadline,” revealing that the contract was terminated as of midnight on the 29th. In response, ADOR has filed a lawsuit at the Seoul Central District Court to confirm the validity of the exclusive contract. The core issue lies in the differing reasons cited by both parties for the contract termination. NewJeans claims that ADOR failed to protect the artists and attempted to obstruct their activities, which they see as legitimate grounds for contract termination. Conversely, ADOR argues that the reasons provided by NewJeans are insufficient for contract termination.

Legal experts analyze that both parties need to prove responsibility for the termination of the exclusive contract. Attorney Song Hyemi emphasized, “The termination reasons must be proven in a formal lawsuit.” Attorney Kim Taeyeon explained that while ADOR’s claims might hold, minor issues may be significant to the artists, and the outcome will depend on the evidence presented.

Considering advertising contracts, there is a possibility that NewJeans might pursue an injunction procedure to suspend the effects of the exclusive contract. Legal experts predict that new advertising contracts will be challenging if ADOR insists on maintaining the contract. There is also a prospect that NewJeans might seek an injunction first to minimize activity gaps.

Opinions in the legal community are divided regarding the penalty issue. Attorney No Jong-eon stated that the penalty could be zero if both parties are at fault, but Attorney Song stressed that since there appears to be no significant fault on ADOR’s part, the penalty is likely to be recognized.

Lastly, controversy exists over whether NewJeans can retain their group name. According to the standard exclusive contract, trademark rights should transfer to the artist after contract termination. However, if ADOR demands compensation for their investment in the trademark, a legal dispute is expected. Analysts suggest that if trademark rights belong to the agency, it will not be easy for NewJeans to retain their name.

The future developments and the eventual outcome of the dispute between NewJeans and ADOR remain to be seen. Stay tuned for updates on this matter.

This article has been written by Kpopmap AI writer and while we have made efforts to ensure the accuracy of the article, there may be errors or inaccuracies.