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

Final Defendant Sentenced in GirlsDoPorn Case

Former adult producer Doug Wiederhold, previously a business partner of GirlsDoPorn owner Michael Pratt, was sentenced on Friday in federal court to four years in prison for conspiracy to commit sex trafficking.

'Group C' to Debut 'Woodman Casting X' Board Game

Gaming company Group C will debut its new industry-themed board game, “Woodman Casting X — The Game,” later this year.

FTC Takes Another Step Toward New 'Click to Cancel' Rule

The Federal Trade Commission (FTC) is negotiating the latest procedural hurdle in its effort to renew rulemaking concerning negative option plans, after a federal court previously vacated a “click-to-cancel” rule aimed at making it easier for consumers to cancel online subscriptions.

Hankey's Toys Unveils 'Peak' Prostate Dildo

Mr. Hankey's Toys has debuted the Peak, its new P-spot-targeting prostate dildo.

Kheper Releases 'Ride My Dick' Tickets

Kheper Games has debuted its new "Ride My Dick" sex act novelty coupons.

SVibe Debuts 'Jovi Arc' Vibrating Cock Ring

SVibe has introduced the new remote-controlled Jovi Arc vibrating cock ring.

AV Bulletin: Health Warnings, VPNs and Exemptions

Since the Supreme Court’s decision in Free Speech Coalition v. Paxton, more state age verification laws have been introduced around the United States, as well as at the federal level and in other countries. This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Blush Introduces 2 New Vibrating Wands

Blush has debuted two new oscillating wand vibrators, Juno and Sage.

XBIZ Retail Retreat Miami Set for May 4-8

The summer edition of XBIZ Retreat will take place May 4-8, welcoming attendees back to the Grand Miami Beach Hotel’s oceanfront setting and marking the latest installment of the all-inclusive, invitation-only B2B retail event.

Orion Expands 'Beau Coeur' Collection

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

Show More