News  /  October 1, 2015  /  

KHIKS files complaint against Playboy for breach of contract in licensing of branded vodka

KHIKS Partner David Swift has filed a $12 million lawsuit on behalf of Broad Street Licensing Group, alleging that Playboy Enterprises attempted to hide their commission obligations over Playboy-branded liquor.

The dispute stems from an exclusive two-year agreement Broad Street Licensing Group made with Playboy to act as the company’s exclusive licensing agent for spirits, in which the plaintiff would also receive a 30 percent commission from Playboy’s deal with VuQo Inc., a Philippines-based vodka manufacturer. Playboy later advised BSLG that the deal with VuQo was terminated, but according to the complaint, later made a direct deal with VuQo’s lead investor, resulting in a Playboy-branded vodka identical to the previous VuQo manufactured brand.

The lawsuit accuses Playboy of breach of contract, as well as breach of implied covenant of good faith and fair dealing. In addition, the complaint also states that Playboy refused to pay BSLG commissions on $800,000 in royalty advances Playboy received in March of 2014 from VuQo, “in a feat of accounting that would make Enron jealous.”

For more details, read the full story in The Hollywood Reporter.