SM Entertainment has alerted fans regarding a clothing brand’s unauthorized use of NCT DREAM for their upcoming events. 

On Monday, October 30, SM Entertainment released a statement to detail what prompted their agency to terminate their partnership with TEDDY ISLAND, a clothing brand that NCT DREAM previously modeled for. 

According to the label, the brand hadn’t met its financial obligations related to the modeling fees accrued during the past year despite the agency’s repeated payment requests. As a means to protect their artists’ rights, the company ultimately decided to end the partnership.

But what raised even more concern for the agency was TEDDY ISLAND’s continued unauthorized use of NCT DREAM in their advertising activities. 

Despite using the NCT DREAM’s portraits without proper compensation, SM Entertainment revealed that the brand took things a step further by unilaterally announcing a fan sign event in May 2023 without prior consultation with  their agency. 

NCT DREAM as TEDDY ISLAND ambassadors

In their statement, SM Entertainment shared that their advertising model contract with TEDDY ISLAND began in 2022. It was also then when NCT DREAM filmed advertising content for the brand. However, the brand didn’t fulfill their financial obligations for the group. 

In response, the label said that they requested the clothing brand to immediately cease using their artists’ images. In June 2023, SM Entertainment shared that they officially notified TEDDY ISLAND of the termination of the advertising model contract. 

Regardless, the brand, according to SM Entertainment, continued to utilize NCT DREAM’s images without permission and remitted only a portion of the model appearance fees after the contract was terminated. Furthermore, TEDDY ISLAND allegedly attempted to shift the blame onto SM Entertainment, claiming that the entertainment company had breached the contract.

Moreover, the situation escalated when TEDDY ISLAND announced a pre-order event featuring photo cards and merchandise bearing the NCT DREAM’s names and images without any prior discussion with SM Entertainment. Which prompted the agency to make a counter statement on October 18, 2023, to prevent any further harm to their artists and fans.

Additionally, the agency noted that they exerted efforts to resolve the matter amicably. As such they shared that they even presented multiple proposals to TEDDY ISLAND so that the canceled fan sign event can resume. However, the agency said that the brand continued to make unreasonable demands and shifted the responsibility for the dispute onto the label. 

With this, SM Entertainment decided that no further negotiations will be feasible. In turn, they strongly advised fans to exercise caution in terms of supporting this clothing brand.

Featured image: K-pop boy group NCT DREAM models for TEDDY ISLAND. Credit: Twitter/TEDDY ISLAND