SAN FRANCISCO — Falcon/Raging Stallion Studios has sued its former novelties distributor, Icon Brands, for breach of contract and back payment of more than $300,000 in unpaid royalties.
The studios say that Icon hasn't paid any royalties on about $1 million in sales it made with the branded products during the 2013 fiscal year.
"Further, Icon continues to sell Falcon/Raging Stallion-branded products even after being noticed with a cease-and-desist and a contract termination notice," the studios said.
Falcon/Raging Stallion Studios' suit contends Icon Brands has failed to meet its contractual obligations and that the distribution of its branded toys represent half of Icon's gross revenue.
"Falcon/ Raging Stallion brought its legendary line of super cocks to Icon for distribution three years ago and Icon has also developed new toys branded as Falcon/Raging Stallion products," the studios said in a release today.
Falcon/Raging Stallion President Chris Ward emphasized that he had no other option in the matter.
"We worked very hard over the past many months to resolve these issues with Icon, but we were unable to come to any resolution of the fact that they owe us a huge amount of money, have been delinquent for quite some time, and are no longer making any payments at all," he said.
"We did not witness any demonstration that there was a plan under consideration that would allow us and other major creditors to recover the large funds owed to us. We do not take litigation lightly and would have preferred to resolve this matter informally. However, we now believe there is no other option to secure our past balances and protect our 40-year-old brand."