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 © 2026 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

Magic Silk Expands 'Love' Line

Magic Silk has introduced six new styles from its Love line of lingerie.

XBIZ Virtual Pleasure Products Trade Show Set for July 28-30

To facilitate global business between brands and buyers without the need for travel, XBIZ is pleased to reintroduce a virtual edition of its pleasure products events, set for July 28-30.

Orion Debuts New Styles From 'Svenjoyment' Line

Orion Wholesale has released two new styles from its Svenjoyment undergarment line.

Blush, 'Drag House Rules' Partner for Pride Month

Blush has been named an official challenge sponsor for OUTtv’s “Drag House Rules” during Pride Month.

Je Joue to Debut Expanded Product Lines at ANME

Je Joue will introduce several new products from its ILY and Je Joue collections at the ANME trade show in Burbank next month.

Orion Expands 'Beau Coeur' Collection

Orion Wholesale has introduced two new pleasure products from its Beau Coeur collection.

FSC: W.V. Age Verification Law Takes Effect June 12

The Free Speech Coalition has issued a reminder notice that West Virginia's age verification law takes effect on June 12, 2026.

Svakom Featured on 'Õhtu!' Talk Show

Svakom is featured in a new episode of “Ōhtu!” on Estonia TV’s Kanal 2.

Wicked Sensual Care Debuts 'Honeysuckle + Ivy' Massage Oil

Wicked Sensual Care (WSC) has introduced its new Honeysuckle + Ivy Sensual Massage Oil.

WOW Tech, XR Brands Reach Settlement in Patent Infringement Dispute

XR Brands and Lovehoney Group subsidiary WOW Tech Group have settled a patent dispute over WOW's Pleasure Air Technology.

Show More