“They will have to give up the name” — ADOR’s lawyer highlights legal consequences as NewJeans files lawsuit against label for contract nullification

On November 29, 2024, NewJeans announced the termination of their exclusive contract with ADOR, citing severe breaches of trust and contractual violations. On December 3, 2024, ADOR officially filed a lawsuit with the Seoul Central District Court to validate its exclusive contracts with the group.

According to the latest report, ADOR's Attorney Lee Ji-hoon from the law firm Law & More gave a thorough analysis of the legal path and consequences of the ongoing contract feud between both parties. On December 11, 2024, Sports Chosun reported that Lee Ji-hoon explained how standard contracts and copyrights work in any industry.

“If they continue their activities, they will no longer be able to use the name ‘NewJeans.’ That name belongs to ADOR under the terms of the contract, as do the copyright, trademark, (existing songs), and intellectual property rights associated with it. If NewJeans terminates their contract, they will have to give up the name.”

Attorney Lee Ji-hoon added that the group's contract is still in effect and cannot be simply dissolved. According to her, the contract termination will be void if ADOR resolves the six issues brought out by NewJeans. In addition, if the group were to leave abruptly before the conclusion of the contract period, they would be responsible for paying the penalty.

“But they will have to pay. If they have created a situation where a penalty must be paid, simply saying 'we have no intention of paying' won’t be accepted socially or legally. They probably don't want to pay a single penny, but I think they’ll have to. This will be NewJeans’ legal risk.”

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NewJeans and ADOR legal dispute intensifies: Latest updates

The controversy escalated after Min Hee-jin, former ADOR's CEO, resigned from her position on November 20, 2024. This decision came just a month after her reappointment as ADOR’s inside director on October 17. The reasons for her resignation remain unclear, but speculation points to growing tensions within the label and its parent company, HYBE.

On November 13, the girl group sent a certified letter to ADOR and HYBE, demanding the reinstatement of Min Hee-jin as CEO and accusing ADOR of violating contractual obligations, including member protection. They gave a 14-day deadline to address these issues, warning of contract termination.

On November 28, the group held an emergency press conference to announce their contract termination, which took effect on November 29 at 12 AM KST. In response, ADOR filed a lawsuit on December 3, 2024, with the Seoul Central District Court to challenge the validity of the contract termination. The label argued that unilateral termination was unjustified. The court's ruling will determine whether NewJeans’ actions were justified and if the court sides with the girl group, the contract will remain nullified.

However, if the court favors ADOR then the label can seek financial damages from the girl group. The Korea Times reported that the group would have to pay a penalty between 400 billion to 600 billion won (around $279 million to $419 million) to ADOR and HYBE for breach of contract.

Adding to the complexity of the situation is a dispute over the group name "NewJeans," which remains under ADOR's copyright. Despite this, the group has declared their intent to continue performing under the name.

Furthermore, the girl group also accused ADOR and HYBE of fostering a hostile work environment. Times Now reported on December 6, the group alleged that staff and managers assisting them with their remaining contractual obligations faced harassment and even wrongful investigations. A staff member of the K-pop group said:

"They bothered the performance director and other staff with unnecessary, frequent meetings, and bullied them. They asked the managers for their personal phones. They even forced them to stay in the office for more than three hours, not allowing them to go home."

On December 6, The Korea Herald reported that The Korea Entertainment Producers’ Association (KEPA) condemned NewJeans’ decision to terminate the contract, calling it "irresponsible" and "concerning." The organization said:

"An exclusive contract is not just a document, but the result of shared trust and promises. The notion that such contracts can be unilaterally terminated without concrete justification is deeply concerning."

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Meanwhile, On December 7, NewJeans performed at the YAOSABI concert and refrained from using their group name. Instead, they introduced themselves by their respective stage names.