[Dispatch=Reporter Kim Ji-ho] Hybe subsidiary Ador won again in the appellate hearing of its damages lawsuit against video production company Dolphin Abduction Unit. Like the first trial, Dolphin Abduction Unit's obligation to pay a contractual penalty of 1 billion won was confirmed.
On the 29th at 2 p.m., the Civil Division 5-3 of the Seoul High Court announced its appellate decision in the damages lawsuit filed by Ador against Dolphin Abduction Unit and director Shin Woo-seok.
The court stated regarding Dolphin Abduction Unit's upload of the NewJeans 'ETA' music video director's cut that "the plaintiff's (Ador's) argument is that the defendant violated its obligations without prior written consent," adding "we judge the contractual penalty claim in the same manner as the first trial."
The court further explained that "even if the defendant received verbal consent from the plaintiff's representative director (Minhee at the time), uploading the director's cut without written consent and posting the video without removing Apple-related elements constitutes a breach of contract."
However, the basis for the ruling differed from the first trial. In the first trial, the court assumed an obligation to pay a contractual penalty of 4 billion won, which is twice the service fee of 2 billion won. The court then accepted the partial claim of 1 billion won in full.
However, the appellate court stated: "The contractual penalty stipulation is valid only within the scope of approximately 1/4, or 1 billion won. The remainder is deemed invalid as it violates good morals and public order," adding further explanation.
Director and representative Shin Woo-seok of 'Dolphin Abduction Unit' collaborated with former Ador representative Minhee and exclusively produced NewJeans music videos. Director Shin also operated a YouTube channel called 'Banheesoo,' named after NewJeans' fanbase 'Bunnies.'
Dolphin Abduction Unit uploaded the NewJeans 'ETA' music video director's cut to its own YouTube channel in August 2024. It was posted without receiving prior written consent from Ador.
Ador demanded deletion, claiming it was "unauthorized posting without consultation with the advertiser (Apple)." Director Shin Woo-seok then posted a critical post on social media and brought the matter to public attention. Videos on the Banheesoo channel were all deleted.
The conflict escalated into litigation. Director Shin filed a complaint, claiming that Ador's statement constituted defamation. Ador demanded a contractual penalty of 1 billion won from Dolphin Abduction Unit and 100 million won in damages from Director Shin for defamation.
Former representative Minhee and Shin Woo-seok stated that "they discussed it verbally." They claimed that former representative Minhee gave verbal consent to director Shin Woo-seok during a meeting on July 3, 2023. They argued that Apple also attended the meeting.
Ador countered that "the testimony of individuals from Minhee's side lacks credibility." Ador pointed out that if verbal consent had been given at that meeting, Apple would have had no reason to later raise issues with Dolphin Abduction Unit's video posting.
The first trial court stated: "It cannot be said that Dolphin Abduction Unit fulfilled the obligation to receive 'prior written consent' as stipulated in the contract through verbal consent," and acknowledged Dolphin Abduction Unit's breach of contract. The court ordered payment of 1 billion won in contractual penalty and damages for delay. Both sides appealed.
Meanwhile, in July of last year, the prosecution decided not to indict the criminal complaint filed by Dolphin Abduction Unit against Ador.
<Photo=Dispatch DB>
