‘Extremely risky’ for NJZ, formerly NewJeans, to pursue new direction amid legal disputes

By Pyo Kyung-min Marking their departure from their agency and the start of independent activities, members of K-pop group NewJeans have rebranded as NJZ, a move that adds new complexity to their ongoing legal battle with Hybe Labels’ subsidiary Ador. While entertainment and legal professionals are hesitant to paint a rosy picture for NJZ, the five members – Minji, Hanni, Danielle, Haerin and Hyein – show no signs of looking back. On February 7, the group revealed their new name and announced they would debut new music at ComplexCon Hong Kong in March as the first step in their independent careers. The members have primarily shared their views through international media, including CNN and Japan’s TV Asahi. In a subsequent February 8 interview with TV Asahi, the group revealed: “There are very few media outlets in Korea willing to amplify our voices. Nevertheless, we will continue our activities joyfully and without giving up.” As soon as the news broke, Ador was quick to respond with an urgent announcement on February 10. In an email to Korean reporters, the agency said: “The exclusive contracts between NewJeans members and Ador remain legally valid. Claims that they have been terminated are unilateral assertions. We ask the media to use the official team name, ‘NewJeans’, in accordance with the valid contract.” Ador’s attempts to curb NJZ’s activities took another turn on February 12, when it was revealed that Vietnamese-Australian member Hanni had resolved her visa issue. Her visa had reportedly expired earlier in February, potentially putting up a roadblock for NJZ’s future plans. Foreign artists performing in Korea typically require an E-6 visa, specific for entertainers, which is usually obtained through their legal agencies – in Hanni’s case, Ador. With her group’s departure from the label, the type of visa she acquired remains unknown. Courts assess trademark disputes based on potential public confusion, and there is a 99.9 per cent chance that the court will rule that ‘NJZ’ is misleadingly similar to ‘NewJeans’ Kho Sang-rock, lawyer at Law Firm Pil The group’s move to break away from Ador officially began on November 29, when the five members held a surprise press conference announcing the termination of their exclusive contracts. They claimed Ador failed to manage the group in their best interests, making the contract null and void. Ador immediately retaliated by taking legal action. In December, the agency filed a lawsuit to confirm the validity of the exclusive contracts and, in January, sought a court injunction against the members to prevent them signing independent advertising deals or engaging in promotional activities. The agency said the legal action was “necessary to ensure Ador’s status as the group’s management company until the first ruling on the contract validity lawsuit is issued”. Ador maintains that the exclusive contracts with NewJeans are valid until July 31, 2029. The first hearings for the two lawsuits – the injunction against independent advertising deals and the lawsuit to confirm contract validity – are scheduled for March 7 and April 3, respectively. If the court rules against NewJeans, the members could face substantial financial penalties. Legal experts estimate potential damages could reach hundreds of billions of won based on NewJeans’ disclosed revenue figures. Even if they win, the legal battle is expected to drag on. Kho Sang-rock, a lawyer at the Seoul-based firm Law Firm Pil, highlighted the legal complexity of the dispute. “The trademark rights to ‘NewJeans’ legally belong to Ador. The members argue the contract was terminated because of Ador’s breach of duty, but even if that is true, it does not grant them the right to use the trademark,” Kho said. “Even if the contract is voided without penalties, using the trademark without permission would constitute infringement. That appears to be why they adopted ‘NJZ’ as their new name, but the issue of trademark infringement remains unresolved … “Courts assess trademark disputes based on potential public confusion, and there is a 99.9 per cent chance that the court will rule that ‘NJZ’ is misleadingly similar to ‘NewJeans’.” Lawyer Jin Bo-ra voiced similar concerns in a YouTube commentary. Jin said that because the contract termination remains legally uncertain, NewJeans’ independent commercial activities, such as signing endorsement deals, could pose financial risks. “If the court later rules that the exclusive contract was still in effect, the members may have to share revenue from these activities with Ador and could face penalty fees,” she said. “Attempting this is extremely risky.” Read the full story at The Korea Times.

‘Extremely risky’ for NJZ, formerly NewJeans, to pursue new direction amid legal disputes

Lawyers raise concerns as the K-pop girl group – due to perform in Hong Kong in March – remain mired in lawsuits with Hybe Labels’ Ador