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

Orion Debuts New Thrusting Bullet Vibe From 'Javida' Line

Orion Wholesale has introduced a thrusting bullet vibrator from its Javida collection.

Besharam CEO Raj Armani Featured in Cosmopolitan India Magazine Brand Showcase

Raj Armani, co-founder and CEO of Indian pleasure brand Besharam, was recently featured in a full-page brand showcase advertorial in Cosmopolitan India Magazine.

Aneros Rolls Out Resource Hub for Retailers, Industry Partners

Aneros has launched its new Aneros Media Website, a digital platform to centralize the company's educational resources, product training, point-of-sale materials, and marketing assets for its retailers, distributors, and industry partners.

Liberator Debuts 3 Curated 'Kinkmas Box' Holiday Pleasure Product Bundles

Lifestyle pleasure brand Liberator has introduced Kinkmas Boxes, three curated holiday product bundles for couples.

Paradise to Introduce 3 New Additions to 'Illumination' Line at Sex Expo in January

Paradise Pleasure Products will debut three new additions to its LED-enhanced Illumination collection at Sex Expo, taking place Jan. 7-10 in L.A.

Brent Aldon, Erik Vasquez to Return as Hosts of 2027 XBIZ Awards, Pleasure and Retail Edition

Aneros Director of Sales and Marketing Brent Aldon and Sliquid VP of Marketing Erik Vasquez will once again bring their signature showmanship to the stage as co-hosts of the 2027 XBIZ Awards, on Jan. 9 at Avalon Hollywood.

b-Vibe Introduces Clinician-Reviewed Educational Guides

COTR has released a new set of clinician-reviewed educational guides through its b-Vibe Anal Academy platform.

East Coast News Taps Paul Reutershan for Business Development Manager

Paul Reutershan has joined East Coast News (ECN) as its new business development manager, returning to the company where he began his career in 2002.

Beisar Debuts 'Pixel' Anal Vibe

Beisar has introduced its Pixel three-function anal vibrator.

Xgen Expands Bodywand Line With 2 New Vibes

Xgen Products has added two new bullet vibrators to its Bodywand collection.

Show More