My web service is receiving xml from a third party that looks like this:

<SOAP-ENV:Envelope xmlns:SOAP-ENV="http://schemas.xmlsoap.org/soap/envelope/">
    <SOAP-ENV:Body>
&lt;Foo&gt;bar&lt;/Foo&gt;
    </SOAP-ENV:Body>
</SOAP-ENV:Envelope>

My jaxws web service rejects this with a parsing error. Also if I try to validate this xml using soapui it says Body with element-only content type cannot have text element.

My question is, is that xml valid? Or is the client supposed to send me something without escaping the < and >.

Any references to xml standards or rules are appreciated.