Playboy Awarded $19M in Legal Battle Against Former Brand Licensees

Playboy Awarded $19M in Legal Battle Against Former Brand Licensees

CHICAGO — A Chicago judge on Friday sided with Playboy Enterprises Inc. and tripled a jury award against a pair of former licensees, Play Beverages LLC and CirTran Beverage Corp., that were alleged to have infringed on its trademark.

Last October, a jury unanimously found that the beverage companies intentionally sold Playboy Energy Drinks under Playboy's trademarks knowing that they were counterfeit. The jury awarded Playboy $5 million in damages for infringement, along with $1.6 million in a breach-of-contract claim.

Friday’s tripling of the jury’s award means that Play Beverages and CirTran are on the hook for $15 million in damages. The judge also awarded to Playboy attorneys' fees and costs of suit.  

The enforceable judgment as modified by the court now totals about $19 million, Playboy’s trial counsel said.

The court earlier issued a permanent injunction against the beverage companies and persons associated with them, including their principal, Iehab Hawatmeh, along with their agents and distributors.

The injunction ordered them to immediately stop manufacturing, selling, promoting and advertising Playboy Energy Drinks, as well as any other Playboy products or services.

The legal feud between the companies that were once business partners has been going on for more than five years and has worked its way through bankruptcy court, federal district courts in California and Illinois and the Chicago-area county court.

After several of CirTran’s creditors began an involuntary bankruptcy proceeding against the company in 2011, Playboy told CirTran it was terminating the licensing deal over missed royalty payments.

CirTran’s distributor Play Beverages, in response, filed claims accusing Playboy of interfering with its sales and distribution of the drinks.

The parties agreed to drop litigation to try to negotiate themselves but, in the meantime, the original deal expired and Play Beverages was unable to raise $2 million to keep its business alive.

Later, CirTran and Play Beverages sued Playboy, reasserting breach of contract allegations and claiming the company told them they intended to extend CirTran’s five-year licensing deal and encouraged them to sign contracts with distributors to sell the drink.

CirTran then claimed that Playboy actually had no intention of re-entering into the licensing deal because it was negotiating with other suitors.

Playboy moved its claims on to another venue, federal court in California, asking a judge to enter a preliminary injunction barring the company from selling the products after the license’s expiration.

After the federal court dismissed it for lack of jurisdiction, Playboy refiled its case in Illinois federal court, where a judge there said the dispute should be resolved in state court, where CirTran’s suit was still pending.

Playboy then brought several counterclaims, alleging it was CirTran that breached the contract and accusing the company of infringing on Playboy’s trademark.

In a statement today, Playboy officials said that they plan to collect on the judgment in the long-running case.

“Playboy will continue to strongly enforce its judgment and injunction against Play Beverages/CirTran Beverage to stop Iehab Hawatmeh's companies from engaging in infringing and counterfeiting activities,” Playboy said. “In addition, Playboy will continue to defend its trademarks vigorously throughout the world as Playboy has done in this case.”

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

Adam & Eve, Lovehoney Group Partner for Custom Products

Adam & Eve and Lovehoney Group have partnered to introduce two custom editions of We-Vibe vibrators and an advent calendar sex kit.

Lovely Planet, Dorcel Expand Partnership

Lovely Planet, longtime manufacturer and distributor of the Dorcel Toys line, has expanded its partnership with the company to include all Dorcel physical pleasure products.

Arcwave Debuts 'Air' Male Stroker

Arcwave has introduced Air, the newest stroker from its Pleasure Air collection.

Sportsheets Introduces 11-Piece 'Amethyst' Collection From 'Sex & Mischief' Line

Sportsheets is accepting pre-orders for its new Amethyst collection of pleasure accessories from its Sex & Mischief line.

Haute Sugar to Make Industry Debut at XBIZ Expo

Haute Sugar, a new lifestyle brand that blends intimate wellness with fashion-inspired design, will make its industry debut at XBIZ Expo in Los Angeles this January.

Ofcom Sets Timeline for Enforcing 'Extreme' Content Rules

Before U.K. media regulator Ofcom begins enforcing new laws criminalizing certain “extreme” adult content online, it will first hold a consultation in early 2027, and then provide updated guidance for sites and platforms.

Casey Murphy to Host Free Webinar for Indie Product Manufacturers

Industry marketing strategist and certified sex educator Casey Murphy is hosting a free live webinar for independent sexual wellness product manufacturers at 1 p.m. MT today.

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.

Show More