Members of NewJeans announced Thursday the termination of their exclusive contracts with Ador, citing breaches of contract by the agency. The quintet claimed at the press conference in Seoul that they owe no penalties or compensation. However, questions remain about the legality of this decision.

Although NewJeans claims that the termination of their contract is legal, citing violations of contract terms by Ador, the specific details of their contract remain confidential.

The members sent a content certification to Ador on November 13, demanding corrective action within 14 days, as stipulated in the contract, before officially terminating the agreement.

Entertainment lawyer Bae Jin-sung of Myoungjae Law Firm 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,” Bae said Friday.

The lawyer specifies, however, that injunctions preventing artists from pursuing their careers are rare.

“While an injunction may be granted, disputes of this nature often result in financial compensation rather than a ban on 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 are contractual violations are based on subjective judgment. Ador said that while she tried to meet the requirements outlined in the content certification, some were beyond her capabilities.

The legality of terminating NewJeans’ contract will depend on the court’s decision.

“The legality of termination (by NewJeans) due to alleged breaches of contract should be determined by the court,” Bae said. “However, given the nature of exclusive contracts, based on mutual trust, unilateral termination is possible. No matter who is at fault, Ador cannot give work to NewJeans. They (NewJeans) are no longer under Ador.

However, if the court subsequently finds the termination invalid, NewJeans may be liable for sanctions.

Bae clarified that all revenues from future activities of a new agency would belong to that business entity. For advertising agreements signed under the NewJeans name, the continuation of these agreements would depend on the decisions of the advertisers.

Ownership of the name “NewJeans” and the intellectual property rights to their music likely belongs to Ador. Unauthorized use of these assets by NewJeans may violate trademark and copyright laws.

“The case of TVXQ constitutes a precedent. Of the group’s five members, three left SM Entertainment to pursue careers elsewhere, but they were banned from using the name ‘TVXQ,’” Bae said. Likewise, Ador could seek an injunction to prevent members of NewJeans from using their group name or performing songs they recorded under Ador. – The Korea Herald/Asia News Network