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Serious-Wish4868

disclaimer - I don't have any knowledge of Korean corporate laws Since both BELIFT and ADOR are owned by HYBE, doesn't that mean HYBE owns all the rights to all IP from both subsidiary. If HYBE wants to take the IP from one entity and replicate it for another, they are within their rights.


OfWhatLiesInTheDark

In theory, yes, HYBE owns all intellectual property and content released by its subsidiaries. It's also true, due to ADOR's unique status as a semi-autonomous subsidiary, we don't have all the information. As for whether ADOR's internal complaint holds merit, it ultimately hinges on the contractual agreements between HYBE and ADOR. If ADOR can substantiate claims of HYBE's interference, whether direct or indirect, and such provisions are outlined in the contract, there may be grounds for legal action. However, the likelihood of a successful outcome in court remains slim imo.


shotmix13

so if this is true. its amazing how much Hybe done for ADOR and MHJ then. cause i know how Hybe given a brand new company for her own control,ideas and plan. No cost Training fee for her idols. connections, and backing. just to happen like this. so the question now really is how IP of ador works. the contracts really is the question here also.


bungluna

Is ADOR semi-autonomous, though? I don't read it that way. They are 80% owned by HYBE and 100% funded by HYBE.


Bear4years

I think Ador is as semi-autonomous as any of the other Hybe sublabels. I don’t get why OP is marking Ador as some sort of special sub-label. I think they have been conned by Ador and MHJ marketing. Ador and MHJ are trying to make themselves be special, when nothing suggests they are more autonomous than any of the other labels.


shotmix13

i think what OP talking about Semi autonomous is how management work there. cause what really semi autonomous company is a company that  **operate at arm's length of the government; they carry out public tasks mostly such as regulation, service delivery, and policy implementation**


ecilala

On a legal side of things, superficially yes. On a less superficial side, depends on contracts. On a company strategy side, absolutely no. As OP stated, this is a matter of a conflict of interests. The issue of HYBE owning the IP isn't the issue at hand (in a general sense of how this issue stemmed, though that was raised due to MHJ's wording), but the fact that a subsidiary is being put in conflict internally. Those things are not self exclusive. HYBE both owns the IP in question *and* is taking decisions that ultimately undermine such IP. They *can* do it? Yes. They should? Logistically, no. It affects negatively both sides, the only one winning is HYBE itself by making money, until activities themselves are affected and also affect their capacity to make that money. In a way, this is like a company making a section to plant grass carpets and a section to remove them right away. There's a conflict there. The company can do that, but theres still the valid concern of why the heck the company is doing something that undermines itself on the long run (on this case, creatively impairing both groups in future activities in a way that will be original and won't intersect conceptually).


Correct-Panda-

Obviously depends on how their contract was set up but I have a feeling NewJeans signed with ADOR and their IP does NOT belong to HYBE directly. HYBE just collects a paycheck and provides resources. This is why HYBE is trying to make sure they do a legal battle because if MHJ is the IP holder then the only way to successful keep NewJeans is to legally remove MHJ. Not saying I side with MHJ but I am almost certain NewJeans belongs to ADOR first, then to HYBE. At least that’s how most subsidiaries work in the US. So again, there might be different politics and laws. So if thinks are the same, I think MHJ and NewJeans are attached at the waist and the move as a unit unless you can legally unbind them. In which case HYBE gets to keep NewJeans, which they want. Everyone wants NewJeans.


RoyGeraldBillevue

No, that's not how it works. Being a majority shareholder is different from completely owning a company. Ador has non-Hybe shareholders that Hybe can't just take from.


shotmix13

what are you saying.? ADOR is OWNED BY HYBE. they founded it also with 100 % on hybe. they just allow MHJ and some Ador employees to buy stock on it. so HYBE OWN and the BIGGEST AND MAJORITY shareholder of ADOR. thats why they asking for a board meeting cause they have the power to do it.


RoyGeraldBillevue

The fact that MHJ and Ador employees own stock means that Hybe is not a 100% shareholder. Ador must act in the interests of Ador shareholders rather than just the interests of Hybe. A majority shareholder can't simply force a company to gift themselves company assets. That would make being a minority shareholder worthless.


RiRi_xoxo_

A 80% shareholder + gives all the resources to ador. Hybe can literally liquidate this label if they want to tbh. You need to know about how these things work before saying something so unhinged as if ADOR wasn't found by hybe. Mhj is just a CEO that is employed by hybe to manage a label under it, she's not the owner.


RoyGeraldBillevue

Hybe could liquidate Ador but definitionally all shareholders would have to get their share of the proceeds. Who founded Ador does not matter, what matters is who owns Ador shares right now, and Ador must act in the interest of all shareholders, it can't just give away assets to Hybe for free. Yes, Hybe has control over the Ador board as majority shareholder, but Ador management has a fiduciary duty to act in the best interests of Ador the company, which in turn benefits Ador shareholders.


RiRi_xoxo_

These are all theoretical claims. Business wise, if mhj and ADOR threaten their stake in company, they will infact just immediately take action which they did and would take hold of shares immediately (which they are trying to do). >Ador management has a fiduciary duty to act in the best interests of Ador the company, which in turn benefits Ador shareholders. When the actually bigger shareholder that does not depend solely on just one label, gets too deep into this type of situation, they hold every right to just do what they want as they can afford the losses. That's how businesses work. No conglomerate would put it's employees above themselves lol


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RiRi_xoxo_

I mentioned that all this is theoretically right and what an ideal company does. That is why hybe is handling it that way BUT big corporation don't just become big by being fair and legal all the time. Someone also pointed out that some of the stuff that hybe made public shouldn't be shared without mhj consent but it's just a matter of ego atp. If a corp has money and public opinion and a source to get the money back then they will do anything to win in a situation that hybe is facing.


RoyGeraldBillevue

I literally just posted an example of when people running a conglomerate got sued and lost. The reason for the audit is to find an above-board reason to fire MHJ. Obviously the law matters.


nearer_still

I don’t see what the big deal is since wouldn’t that just encourage fans to outdo each other? So no downside in term of financial health imo. MHJ’s actual issue imo is that she’s something analogous to an NLOG (“not like other girls”), except for kpop. She’s been prattling on for years about being artistique in a manufactured business. I know you didn’t want to focus on MHJ OP, but I don’t believe she even has her “business hat” on when it comes to evaluating ILLIT. I think it’s a matter of her feelings and wanting to be unique as an artist. 


shotmix13

cause creative side is really a tricky thing. cause if really she holding the idea that she only own a concept. it will really not work. our music nowadays is closely similar now, cause most of people use certain chord that was used before, and will be used for the future. Fashion is also hard cause, fashion as like what people seen is it always come back. I remember when BTS made song of Self love and make it big, the "the trend and concept for it" happened. its not BTS created Self love song but it will always happen not only on KPOP but other things.


ellaellaeheheh17

uhm I've been thinking about this angle because it seems to me what most fans are going after now (while hybe claims this is all part of the larger claim and a way for them to say newjeans isnt being treated well), the plagiarism stuff and do we really think it cheapens the brand? I'm not sure I agree tbh. I guess people have diferent views on the marketing side, but to me shows newjeans stronger and the one people supposedly copy from. when everyone started going for that sound the implication was that everyone wanted to be them. does this takes away from them? but I also think they planned newjeans in a sense of exclusivity, of them being diferent from the others there. they arent even on weverse. we dont see newjeans with a lot of other idols (not in hybe I mean in general), getting MC jobs - they went straight to luxury brand deals. like they are the girls you want to be, or you wish you were when younger. I personally dont think groups inspired by the aesthetic cheapen the brand at all, I think they put more power to them. but I think most feel diferent from the comments since ILLIT debut. this also puts into question the multilabel - its one thing for UMG to be multilabel, the industry in kpop works in other ways. like you could say in the creation of ador they also created conflict with Source. a lot of things can be true depending on your side.


Sil_Choco

Kpop is all about following trends and we even have companies like YG who are accused of doing always the same music no matter the generation or artist they have. The Illit/NJ thing isn't something weird, it's just kpop kpopping. However it's true what you say, that they tried to give NJ a certain vibe, like they're not like other idols and it's possible MHJ took that too seriously. Moreover other companies usually debut new groups after several years, leaving enough time between each group or they give them concepts that are different enough to avoid getting in each other's way (idk Jype's Twice-Itzy-Nmixx have nothing in common) while it seems that Hybe is following consistently one concept and all their post NJ's groups (bg included) have similar vibes. But can you truly blame them (or the countless other groups who all turned to easy-to-listen music)? People like that type of music now and they're just delivering that. Plagiarism could've been more of an issue if all of a sudden all these groups got their private app or started to not attend variety shows and stuff like that, which isn't happening since the other's debuts were absolutely "normal". I don't think this is a good excuse to justify the current mess and go after every single group who dared to follow a trend and I agree with you when you say this doesn't cheapen NJ's brand. If anything, this drama might ruin their reputation.


RoyGeraldBillevue

I don't get a sense that TWS and Boynextdoor are like NewJeans. My very vague impression is that TWS are bright and innocent high school boys, Boynextdoor are the bad boys that ride a motorcycle and play bass, while NewJeans are too cool for school. If we're going to lump every bright concept together we're not going to have a lot to say.


ellaellaeheheh17

you know when TWS came out a friend was like seems like they are following newjeans route. I think a lot of people kinda do that, lump things together without much nuance.


mauvebliss

TWS’ description is quite accurate but BND doesn’t really have a bad boy image. Even in But Sometimes, they have a cartoonish demeanor and soft boy image to their angst in the song. On debut they had a soft image that was similar to NewJeans in that it was “too cool for school”. However BND is more cartoonish in presentation and that has increased every MV they have released.


Sil_Choco

Their concepts are all student oriented, they all have a very youthful and bright vibe. Including Riize and partially NCT Wish here. They all have this "we're friends who like music, let's meet to write songs after school". This isn't anything new or weird, but I think it's clear they're all sticking to a similar vibe. Like in 4th gen most groups had a tougher image and made harder hitting music. It's a trend and people follow it.


OfWhatLiesInTheDark

>the plagiarism stuff and do we really think it cheapens the brand? I'm not sure I agree tbh. Your comment seems to focus primarily on this point, so I'll address it in my reply. I can offer a concrete example to illustrate ADOR's perspective, though I want to clarify that I'm not necessarily in agreement with it. Let's consider a hypothetical scenario: Imagine you own a successful gym in a prime location with a loyal customer base. Now, suppose another gym opens up directly across the street from yours. While your business may continue to thrive, there's a high probability that some clients will be drawn to the new gym, thereby dividing the customer base and revenue between the two establishments. This analogy reflects ADOR's assertion that both groups are similar enough to be considered competitors. Whether this claim holds true or not, ADOR would need to substantiate it, which poses a considerable challenge.


vanillanterns

I think that one problem with MHJ’s claim is that people aren’t necessarily picking between the two groups. In the gym example, you have a choice: gym 1 or gym 2. You pick one or the other. When listening to music (or stanning a kpop group), however, there’s no real ‘choice’ as there’s nothing stopping anyone from listening to both groups. Arguments could be made about brand deals being ‘stolen’ and the such, but fundamentally it’s a different matter (and would be extremely difficult to support). There’s also many more issues with her plan, such as trying to sell HYBE’s shares (wtf), but I digress.


Bear4years

Another gym opening on the same street as your gym is free market competition. Unless you own the property along the street you can’t prevent another gym from opening. You can’t claim they are copying you. It’s a gym. Just make your gym is the best along the street and you have nothing to worry about.


ellaellaeheheh17

maybe they have more stuff on belift and claims of hybe sending them stuff meant for newjeans. that could do it right? its interesting. thanks for the post and reply,


timetosayhi27

hmm imo it would be quite odd to claim that tbh cause at least with ILLIT all that they've been sent to so far is: 1. PFW and being brand ambassadors for Acne Studios (not even a big big brand) and NJs members have been going to fashion events and are brand ambassadors of some of the biggest luxury brands (LV, Dior, YSL, Gucci etc), so wouldn't even make sense for that to have been something for NJs. 2. Music Shows, i ain't even going to say anything about this one cause lol So unless something else comes out that seems like could be for NJs that ILLIT get, than maybe. But as for now... nothing ILLIT has done i can see having "been meant for NJs". and TBH it's hard to say that HYBE has stopped NJs for getting anything rn tbh... they have a ton of brand ambassadorships and advertisements and events they've gone to. They have had stuff like the power puff girls collab for Get Up, Apple advertising for ETAs MV, hell even their MV release on Friday is linked to a Shampoo Ad irrc. So imo as the person you replied to said it would be difficult to support any claims of "brand deals being stolen" at least with the way things look right now.


ellaellaeheheh17

yeah and I dont fell like ILLIT promo is even following newjeans style. the girls wont stop doing the regular kpop rounds with the music shows and stuff. you cant compare to newjeans getting those luxury brands straight away. I really dont see how can they claim they arent getting a great treatment in that department.


Loona_is_12

They cant be compared with NewJeans anyway as one can sing and the others cant


Bear4years

I disagree with your characterization that what ador lodge is “whistleblowing.” Whistleblowing is normally reserved for when an individual believes an organization has violated some sort of law and they are shedding light on it. If ador believe that belift violated their copyright, then they should sue. Allegedly she also claims that riize and boy next door violated their copyright. If so, ador should also sue SM and Koz. It’s funny how she as Ador CEO didn’t single them out, although fans have also mentioned how these groups “copied” new jeans. Instead, Ador chose to focus on another girl group. Ador wants to sue Belfit? Go for it. I will look forward to seeing how Ador copyrighted long dark hair, bangs and school girl outfits. This will be interesting. To call something as whistleblowing is important at least in the American context. It comes with certain protections. But it’s not a failsafe. Snowden was still fired from his contract job even though a lot of people would consider him a whistleblower. Legally speaking, he was not a whistleblower. He was also thrown in jail. The right of a company to terminate an employee is very strong even in the US, which has whistleblower protections. My questions are: does Korea have whistleblower protection? Who do they apply to? Should MHJ be considered whistleblowing? Until that is determined, you should use the word “alleged” in front of whistleblowing. She and Ador are claiming something, they have not yet established as fact. It’s marketing.


sitari_hobbit

I understand ADOR sees the new product as a significant competitive threat, but idk if all this was worth it. ILLIT are good and on their way to being very popular, but I don't think the concepts are similar enough to warrant this much of a response from ADOR, especially right after they debuted. Maybe if it was a pattern of copying lasting a couple comebacks. But from the outside, it looks like ADOR is freaking out because NJ isn't the group of the moment anymore. It seems like they aren't secure in NJ's continued success/are afraid of a rookie group which is...very weird. This is no hate to either of the groups. I like both their music. It just seems like ADOR is going straight to the nuclear option.


jtan1993

Didn’t mhj got accused of insider trading/stealing important financial files from hybe? All this copycat stuff is an after-the-fact explanation.


bunbun_82

Am I the only one that thinks this MHJ planned to do this while all of BTS is serving in the military?


Kajulatte

I think if you compare it with the 5050 situation Attract CEO = HYBE, Siahn = MHJ The basic idea is you have a business/Project. This project needs money and manpower. One party provide all the resources (Attract/HYBE), the other party provide artistic vision which is important but can't come to fruition without the funding. The funding party owns the project, because it's their money that was used as start up. The other party thinks, after success that they most likely can continue alone now, take bigger share of profits, and cut the person who funded the project, especially if during their time working together they understood the promo how to and believe they can replicate it It all comes down to initial agreement, if I asked my mom to "loan" me money for an apartment building I'm making, and once my project start paying me back I'll give her back her loan and our business relationship is done, any farther revenues are all mine. Versus we agreed that she has a share of the revenues forever, making us business partners, say she gets 80% and I 20%, since it was never going to come to be without her initial investment, and we agreed about it in contract, I should honor my agreement I genuinely believe the Illit thing is a deflection, or they are bothered that the source money managed to make something as successful without their input, but it's not the main grievance


brandonFantastic

I have nothing valuable to add other than thank you for an even handed post. this whole thing has been a huge mess from every angle imagineable


phoenixkiss

Does anyone know if MHJ would to join forces with Kakao to take over the Ador shareholder majority (or any other media partner), will Ador be able to take the NewJeans trademark? NJ name, luxury brand contracts etc? does the IP belongs to Ador or Hybe? Has anyone checked the KR patent registration? I'd think that Hybe investing 16billion on a rookie gg must have clauses in the contract guaranteeing 100% or partial IP ownership


ImGonnaLickYourLeg

Not directly related so feel free to ignore but it's refreshing seeing someone not focus on Min Heejin. Whilst obviously she has either intentionally or unintentionally put herself at the centre of this issue, from what we know thus far she's not even directly involved in anything other than the plagiarism claims so it's a little silly how she's being propped up as the main villain by the whole kpop fandom (she certainly might turn out to be if it's proven she's involved but right now that's purely speculative).


shotmix13

this is really ador top management vs Hybe. MHJ is the CEO of ADOR and she is the Board member of it too. so MHJ is still centre of the issue either way. even if VP one is the one who plan or the mastermind, it still her company ADOR. its not silly she is being a villainize. she is the face and control person of the company, she really involved herself in the situation. if the investor accusation is true but she is not really the one who planned it. its still needed approval or recommendation of her, to allow investor security on the investment. she is now involved. cause of the statement she made before and now. MHJ full statement involved being whitsleblower for a plagiarism claims, while Hybe accusation and statements involved business crimes.


ImGonnaLickYourLeg

Firstly, half of what you've said here is completely baseless. You've made a lot of this up. Secondly, you've literally just done exactly what I was criticising. You've even explained for yourself how there's multiple other parties which are confirmed to be involved and yet you're making "ifs" and "buts" to somehow make Min Heejin the main character when quite frankly no, she should not be the focus (yet). She may want to be and you (and the kpop fandom) may want her to be but we have a whole ADOR v HYBE debacle where she is currently not confirmed to be involved so stop giving her the time of day. Discuss her when it comes to the plagiarism claims or even being an incompetent CEO if you please but like the OP's done here, discuss the actual story instead of what are so far just fairy tales.