NewJeans' members announced the termination of their exclusive contracts with Ador Thursday, citing breaches of contract by the agency. – Photo: Ador
NewJeans' members announced the termination of their exclusive contracts with Ador Thursday, citing breaches of contract by the agency. The quintet asserted during the press conference in Seoul that they owe no penalties or compensation. Still, questions about the legality of the move remain.
Though NewJeans says their contract termination is lawful, citing breaches of contractual terms by Ador, the specific details of their contract remain confidential.
The members sent a certification of content to Ador on Nov. 13, demanding corrective action within 14 days, as stipulated in the contract, before formally ending the agreement.
Entertainment lawyer Bae Jin-sung of Law Firm Myoungjae outlined two possible legal strategies for Ador.
“The agency could file an injunction to prohibit NewJeans from engaging in entertainment activities with another company, or pursue claims for penalties and damages for breach of contract,” according to Bae, Friday.
However, the lawyer said that injunctions preventing artists from continuing their careers are rare.
“While an injunction could be granted, disputes of this nature often result in financial compensation rather than the banning of activities. Filing an injunction to block an artist’s activities after trust has been broken would violate their constitutional right to freedom of occupation,” he added.
Ador maintains that its contracts with NewJeans’ members remain valid. The agency argues that what NewJeans claims to be contractual breaches are based on subjective judgment. Ador stated that while it tried to meet the demands outlined in the certification of content, some were beyond its capability to fulfill.
The legality of NewJeans' contract termination will depend on the court's ruling.
“The legality of the termination (by NewJeans) due to alleged contract breaches would have to be determined by the court,” Bae said. “However, given the nature of exclusive contracts, which are based on mutual trust, unilateral termination is possible. Regardless of who is at fault, Ador cannot assign work to NewJeans. They (NewJeans) are no longer under Ador.”
However, if the court later deems the termination invalid, NewJeans may owe penalties.
Bae clarified that any revenue from future activities under a new agency would belong to that business entity. For advertising deals signed under NewJeans’ name, the continuation of any such arrangements would depend on the advertisers’ decisions.
Ownership of the “NewJeans” name and intellectual property rights to their music likely resides with Ador. Unauthorized use of these assets by NewJeans could violate trademark and copyright laws.
“The TVXQ’s case is a precedent. Of the five members of the group, three left SM Entertainment to pursue careers elsewhere, but were barred from using the ‘TVXQ’ name,” Bae said. Similarly, Ador could seek an injunction to prevent NewJeans members from using their group name or performing songs they recorded under Ador. – The Korea Herald/Asia News Network
