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

Blush Expands 'Avant' Line

Blush has introduced two new dildos from its Avant Collection.

Male Power Expands 'Sassy Lace' Collection

Male Power has expanded its new Sassy Lace collection of men's underwear.

Adam & Eve, We-Vibe to Launch Pop-Up Tour

Adam & Eve and We-Vibe have partnered for the nine-city “Experience an Ourgasm” pop-up tour, kicking off July 18.

Salorein Debuts 'Sabrina' Suction Torso

Pleasure brand Salorein has released its new "Sabrina" suction torso.

Toendi Debuts 'Pandora' Stimulator

Toendi has unveiled its new Pandora clitoral stimulator.

Beisar Introduces 'Phantom' Dildo

Beisar has debuted its Phantom fantasy dildo.

Full Circle to Debut New Pleasure Products at ANME

Full Circle will introduce its new AI companion love dolls and head-equipped torso dolls at ANME trade show, running July 12-15 at the Burbank Marriott.

Our Erotic Journey Rolls Out Store Locator Site Feature

Our Erotic Journey (OEJ) has debuted its new Store Locator feature on its website and app.

Segpay Partners With Corey Silverstein for Legal Services

Segpay has partnered with adult industry attorney Corey D. Silverstein for specialized legal compliance and policy support for its merchant network.

Zalo Signs Distro Deal With ECN

Zalo has inked a deal with East Coast News (ECN) for U.S. distribution.

Show More