HONG KONG/LOS ANGELES—Playboy Inc., the publicly traded parent company of the iconic magazine and lifestyle brand, was awarded an $81 million judgment Friday in an arbitration victory against a former corporate partner that was responsible for licensing the brand throughout mainland China.
Playboy Enterprises International Inc. (PEII), a wholly-owned subsidiary of the parent company based in Los Angeles, filed an arbitrational action on Feb. 8, 2024, at the Hong Kong International Arbitration Centre against licensee New Handong Investment (Guangdong) Co.
Playboy and New Handong, formerly Handong United, partnered years prior, with an expansion of the licensing in the men's and women's fashion categories to over 3,500 retail locations across China in 2015. As Playboy explained, that partnership later fell apart as New Handong was unable to uphold elements of the licensing agreement.
"We believe justice has been served with this ruling by the Hong Kong Arbitration Tribunal," Playboy chief executive officer and president Ben Kohn said.
"Playboy is one of the most recognizable brands in the world, and the award highlights the value of the brand," Kohn added. "Playboy will continue to vigorously protect its official licensed partners, brand and intellectual property worldwide.”
Under the binding arbitration agreement, New Handong has until Sept. 20, 2025, to pay Playboy $81 million, including the accrued interest, in full or face sanctions.
"Playboy intends to pursue all appropriate enforcement actions against New Handong but cannot provide assurance that it will be able to collect any or all monetary damages from New Handong," the company notes.
