SM Issues Warning on NCT DREAM's Unpermitted Events with Clothing Brand

By Riely Miller Oct 30, 2023

SM Entertainment addressed an issue involving one of NCT DREAM's endorsed brands.

SM Entertainment Addresses NCT DREAM's Unpermitted Events with TEDDY ISLAND

On October 30, SM Entertainment released an official statement warning fans of unpermitted events announced by TEDDY ISLAND, which is affiliated with NCT DREAM.

In their statement, SM addressed NCT DREAM's signing with TEDDY ISLAND as its contract model and that the brand has not fulfilled the model appearance fees despite SM's demand for payment requests.

SM claimed that TEDDY ISLAND continuously used NCT DREAM's portraits in their activities without payment. Apart from the issues regarding fees, it expounded on a separate matter involving an unpermitted fan sign event in May.

"Hello. This is SM Entertainment.

We would like to express our stance on issues related to the brand TEDDY ISLAND, which NCT DREAM served as an advertising model. In 2022, our company signed an advertising model contract with TEDDY ISLAND and conducted NCT DREAM's advertising filming with the brand.

However, TEDDY ISLAND didn't fulfill the model performance fee agreed on the advertising model contract, despite our urging requests for payments. Despite this, TEDDY ISLAND still continued their advertising activities using the artists' portraits without paying fees."

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It then announced that earlier in June, SM requested TEDDY ISLAND to stop the usage of NCT DREAM's portraits in their advertisements, followed by the model contract termination request from the agency.

The statement also explained how the model appearance fees only remitted a portion right after the contract's expiration. SM then stated that TEDDY ISLAND claimed that the entertainment agency was the one with a contract breach.

SM also pointed out TEDDY ISLAND's pre-order announcement involving NCT DREAM merchandise, to which the company addressed on October 18. Furthermore, the statement addressed SM's multiple proposals, the conflict with the brand, and its assurance to fans.

"Afterwards, on June 2023, we requested TEDDY ISLAND to immediately stop using the artists' portraits and advertisements to protect them and prevent confusion among their fans. We have also notified the brand of the advertising model contract termination.

Despite this, TEDDY ISLAND continued to post the portraits and advertisements of our artists on its website without permission. TEDDY ISLAND also remitted a part of the fees after the termination of the contract. Afterwards, they unfairly claimed that our company was the one who breached the contract.

In the newest development, TEDDY ISLAND even declared a pre-order event to feature merchandise involving the names and images of our artists. We decided to issue a counter statement on October 18 to prevent further difficulties for our artists and fans.

Initially, we presented multiple proposals to TEDDY ISLAND including the canceled fansign event's resumption. This is to smoothly resolve the problem for fans who have been waiting for NCT DREAM.

However, despite our intentions, TEDDY ISLAND continued to make unreasonable demands and has been unable to proceed with negotiations, which led to the decision of the contract termination. It has reached a point where we can't negotiate with them anymore.

We confirm that TEDDY ISLAND's promotions of NCT DREAM on their website are currently not associated with our agency. We advise that fans should proceed with caution to prevent further harm.

Thank you."