Judge Sides With Playboy Over Suit Against Japanese Partners

CHICAGO — A federal judge gave Playboy the green light to continue its lawsuit against two foreign companies, which were licensed to sell Playboy-branded products in Japan.

Smartitan PTE was given a license in 2006 to sell Playboy-branded products that included apparel and women’s bags. But two years later, the company was caught selling unapproved merchandise both within and outside Japan.

The complaint said that Smartitan was also frequently late with its sales reports and fell behind royalty payments. An audit, conducted by a Hong Kong-based company Eltex, revealed that Smartitan owed Playboy more than $300,000.

Because Eltex had made all the payments due to Playboy, the company assumed “that Smartitan and Eltex were one and the same.” Playboy believed “Eltex so controlled the affairs of Smartitan that Smartitan was a mere instrumentality of Eltex.”

Eltex continued the contract with Playboy even after Smartitan dissolved but Playboy was unaware of the change.

“There were no changes in business that would have alerted Playboy that Smartitan had been dissolved and all payments continued to come, as they always had, from Eltex,” the suit said.

Playboy filed suit in Illinois against both Smartitan and Eltex, alleging breach of contract, unjust enrichment.

Smartitan managing director George Chan was also named as a defendant but claims against him were dismissed.

U.S. District Judge Marvin Aspen denied Smartitan and Eltex's motions to dismiss, finding that both companies were bound by the initial license agreement, which provided that all litigation would occur in Illinois.

Playboy seeks $750,000 in damages for the unauthorized merchandise.

Related:  

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Georgia Gov. Brian Kemp Signs Age Verification Bill Into Law

Republican Gov. Brian Kemp signed into law on Tuesday a bill that includes Georgia’s version of the age verification of adult content provisions being sponsored around the country by anti-porn religious conservative activists.

Honey Play Box Signs Canadian Distro Deal With EP Products

Honey Play Box has signed a deal with Canadian distributor EP Products.

Cherie DeVille Discusses Doc Johnson Collabs in Vice TV's 'Sex Before the Internet'

2023 XBIZ Performer of the Year Cherie DeVille is featured on Vice TV’s “Sex Before the Internet,” discussing her Doc Johnson celebrity strokers in the episode “Sex Toy Empire.”

Neon Coyotes Releases 'Day Collection'

Neon Coyotes has debuted its latest drop of BDSM wear, the Day Collection.

Ashley Manta Appointed Sexual Wellness Curator at Bspoke

2020 XBIZ Sexpert of the Year Ashley Manta has been appointed a curator of sexual wellness brands and events at Bspoke.

Aylo Asks Judge to Trim Sweeping GDP-Related Lawsuit

Aylo asked a California federal judge during a hearing on Monday to drop trafficking claims from a sweeping lawsuit brought by a former GirlsDoPorn model.

Orion Unveils 2 New Ergonomic Dual Vibrators

Orion Wholesale has introduced two new ergonomic dual vibrators from its Sweet Smile line.

California Republicans, Democrats Team Up to Advance Age Verification for Porn

Both Republicans and Democrats in the California Assembly’s Privacy and Consumer Protection Committee voted last week to move forward a version of the age verification bills being sponsored around the country by anti-porn religious conservative activists.

XR Brands Releases 'Pup Teddy Bear' BDSM Plush

XR Brands has expanded its Master Series collection of BDSM-themed teddy bears with the Pup Teddy Bear Plush.

Washington Post Spotlights ECP VP Solomon Friedman's Appearance at XBIZ LA

The Washington Post published this weekend a lengthy feature about Pornhub and Aylo, focusing on Ethical Capital Partners’ VP of Compliance Solomon Friedman’s keynote address and other appearances at XBIZ Los Angeles in January.

Show More