Legal and Business Challenges in K-Pop: NewJeans’ Trademark Dispute with ADOR

Trademark Conflicts Emerge in the K-Pop Scene

Recent trademark controversies have surfaced in the K-pop industry, particularly involving popular groups NewJeans and THE BOYZ. These disputes have arisen from complex disagreements between the groups and their respective agencies regarding the ownership and use of their names.

NewJeans vs. ADOR: A Legal Tug-of-War

In the case of NewJeans, tensions have been mounting between the group’s former agency, ADOR, and its parent company, HYBE. The conflict reached a boiling point when NewJeans announced during a November 28 press conference that their exclusive contract with ADOR would terminate at midnight on November 29. However, the legality of this termination remains dubious and is likely to hinge on forthcoming court rulings.

During the press conference, member Hyein candidly addressed the implications of the trademark issue, stating, “As of midnight, we may be unable to use the name ‘NewJeans,’ even if it’s against our will. While some may perceive this as a mere trademark dispute, for us, it’s profoundly personal. We refuse to relinquish the name ‘NewJeans,’ as it represents everything we’ve accomplished together since our inception.”

Concerns Over Name Utilization

This isn’t the first indication of the group’s apprehensions regarding their trademark rights. At a recent awards ceremony, NewJeans expressed uncertainty about their future as a collective entity, asserting, “Even if we’re no longer called NewJeans, the essence of NewJeans will endure.” This comment underscores their awareness that their trademark rights are tied to ADOR, and a separation could render them unable to legally use their name.

Legal Consequences of Trademark Violation

Trademark rights are protected under the law, and NewJeans must acknowledge that ADOR currently holds ownership of the name. Unauthorized usage of the “NewJeans”trademark could result in serious legal repercussions, including potential fines or even imprisonment. Furthermore, continuing to use the trademark without permission could lead to considerable public backlash, damaging the group’s reputation within the industry.

Complexities of Trademark Ownership Transfers

While trademark rights can be transferred, such processes require mutual consent. In the K-pop industry, contemporary contracts often include terms for transferring rights upon contract termination if both the agency and the artist come to an agreement. However, given the current animosity between NewJeans and ADOR, such an accord appears unlikely.

Contentions Over Contract Validity

The ongoing dispute also involves conflicting interpretations of the contract. NewJeans claims that the contract was effectively terminated due to unmet obligations, while ADOR maintains that the agreement remains valid until July 31, 2029. If no resolution is reached, the matter is likely to escalate to legal arbitration, complicating NewJeans’ quest for trademark ownership in the near future.

Precedents in K-Pop Trademark Disputes

Historical cases of trademark disputes within the K-pop realm provide both cautionary tales and hopeful precedents. For instance, H.O.T. endured a lengthy five-year legal battle over their name, ultimately losing their claim to it. In contrast, Shinhwa emerged victorious in their 17-year struggle to regain their trademark.

Positive Resolutions: A Glimmer of Hope

There are also instances of amicable resolutions that provide a glimmer of hope. For example, GOT7 managed to retain their group name after parting ways with JYP Entertainment in 2022, thanks to the agency’s cooperation on transferring trademark rights. Similarly, groups like Infinite and G-Dragon benefited from favorable negotiations with their former agencies.

Nonetheless, it’s essential to note that these successful transitions typically occurred only after the artists fulfilled their contracts and maintained positive relationships with their agencies. NewJeans, however, finds itself in a vastly different situation—approaching five years remaining on their contract and significant investments made by HYBE and ADOR in the group’s branding make it unlikely that ADOR will willingly relinquish the “NewJeans”trademark.

In summary, the path ahead for NewJeans is laden with challenges as they navigate the complexities of trademark rights and agency relationships within a notoriously competitive industry.

Source: Naver

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