NewJeans Pursues Direct Contracts, Sparking Controversy in the Luxury Brand Sector
On December 18, TenAsia revealed that the popular girl group NewJeans has indicated plans to negotiate a direct contract with the prestigious luxury watch brand “O.” This effort was initiated through manager “A” from ADOR, who directly engaged with the brand to explore potential contract terms. Interestingly, NewJeans has also approached another luxury brand via a different ex-ADOR manager, referred to as “B.”
Termination of Exclusive Contract
This development follows a recent press conference where NewJeans announced their termination of the exclusive contract with ADOR. During this event, they emphasized their commitment to honoring existing agreements to mitigate financial losses for advertisers. However, circumstances have become increasingly complicated, as this situation marks the initial instance of NewJeans negotiating new contracts through ADOR-aligned individuals after publicly severing ties with the agency.
Industry Backlash and Agency Response
The approach taken by NewJeans has raised eyebrows within the advertising community. Critics point to the contradiction of pursuing new deals while attempting to distance themselves from ADOR. Concerns have amplified as ADOR has responded to these activities by suspending Manager A and notifying both brand “O” and another luxury brand that entering into direct contracts with NewJeans may violate the existing exclusive agreement.
This turmoil has caused unrest across the advertising landscape. Brands are wary of finding themselves entangled in the legal disputes between NewJeans and ADOR if they proceed with direct contracts. Large-scale luxury brands, known for their vigilance towards compliance with industry norms, are reportedly engaging in legal assessments of their involvement in this situation.
Legal Implications of Contract Violations
In accordance with the current Ministry of Culture guidelines, artists are required to conduct all entertainment activities through their respective agencies. This regulation prohibits artists from independently negotiating contracts or services within the cultural and entertainment sectors without prior agency approval. Moreover, any third parties found facilitating these violations could be held accountable under civil law.
An anonymous industry expert remarked, “Given that there’s already a lawsuit in progress, it would have been prudent for NewJeans to exercise caution. Diving into independent social media account management or negotiating advertisements under these circumstances appears reckless, especially considering the sensitivity of advertising relations in the industry.”
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