NewJeans vs ADOR Legal Battle: Understanding “Not Terminated” and “Not Affiliated” Status

Legal Dispute Between NewJeans and ADOR: Key Developments

The ongoing legal battle between NewJeans and ADOR has escalated, arising from conflicting claims regarding the termination of their contract. NewJeans contends that the agreement has been officially terminated through a certification of contents, while ADOR maintains that the contract is still in force. Despite these assertions, NewJeans has not pursued an injunction to challenge the contract’s validity. Conversely, ADOR took the initiative to file a lawsuit on December 3 at the Seoul Central District Court, seeking confirmation of the contract’s ongoing validity.

Contrasting Views on Contract Termination

The dispute stems mainly from differing interpretations of what constitutes valid reasons for terminating the contract. During a press conference held on November 28, NewJeans articulated their position, stating, “We demanded rectification of breaches via certification of contents, but since no action was taken within the stipulated period, the contract will be terminated as of midnight on November 29.” In response, ADOR countered, asserting that “a contract cannot be unilaterally terminated based on one party’s claim.”

Claims and Defenses

NewJeans has alleged that ADOR has neglected to safeguard their interests, adversely impacting their activities and engaging in conduct that they view as defamatory. They believe these issues amount to legitimate grounds for contract termination. Conversely, ADOR argues that the claims detailed in the certification of contents do not warrant such actions and reaffirms that the contract remains binding. Legal experts opine that NewJeans will need to provide substantial evidence to support their allegations in any formal legal proceedings.

“The lack of clear, severe issues complicates the case. While ADOR and industry associations argue minor grievances don’t justify termination, such grievances may be significant to the artist. The outcome hinges on how well the claims are substantiated.”
— Kim Tae-yeon, Attorney at Tae-yeon Law Firm

Implications for Third Parties

This contractual disagreement creates uncertainty for third parties looking to engage with NewJeans. While ADOR insists that the group remains under contract, NewJeans is asserting the contrary. As a result, advertisers and potential collaborators are likely to remain cautious and may delay engagement until the legal situation stabilizes. Legal analyst Kim predicts that NewJeans may eventually have to file an injunction to minimize disruptions and facilitate their projects.

Potential Penalties and Financial Implications

The prospect of penalties also looms over the dispute, with differing opinions on enforcement. Lawyer Noh Jong-eon from Jonjae Law Firm indicated, “Penalties apply only if NewJeans is at fault, and apart from their notification of termination, no clear grounds exist. In cases of mutual fault due to trust breakdown, penalties for both parties might cancel each other out.” He posits that, in the absence of significant faults by ADOR, any penalties are likely to be limited in scope. NewJeans recently stated they have already returned profits exceeding ADOR’s initial investment, complicating the financial recompense aspect even further.

Trademark and Naming Rights

Another significant point of contention is whether NewJeans can continue to use their group name. Standard industry contracts generally specify that trademarks revert to the artist upon termination. However, if ADOR retains the rights, recapturing them might be complicated. Furthermore, even if NewJeans triumphs in the lawsuit, ADOR may seek compensation, which could lead to additional complications.

Future Partnerships and Condition

Most legal commentators are skeptical about the feasibility of NewJeans partnering with former ADOR CEO Min Hee-jin in the near future. Lawyer Noh speculated that it might take approximately five years for such collaborations to be viable again, noting, “Even outsourcing contracts with Min might not be pursued for now.”

Potential Fallout from the Dispute

The conflicts arising from this legal battle could have detrimental effects for both organizations. Historical precedents, such as the fallout experienced by JYJ after their split from TVXQ, reveal how similar situations can lead to significant ramifications, including exclusion from major broadcasting opportunities. Noh remarked, “Given ADOR’s proactive legal measures, further lawsuits, akin to SM Entertainment’s past actions, cannot be ruled out.”

As NewJeans faces these challenges, their future remains precarious, with the legal battle not only affecting their career trajectory but also casting a shadow over ADOR’s reputation.

Source: Daum

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