ICONIX SUED BY LICENSEES OVER NEW RETAILER AGREEMENT
Umbro IP Holdings, a division of Iconix Brand Group, is being sued by two licensees, Premier Goal Club, LLC and Balanced Tech Corp, for $90 million in New York Supreme Court.
The suit alleges that, among things, the plaintiffs’ ability to make and sell footwear and other products under the Umbro label has been hindered by Iconix entering into an agreement to directly sell their products to a retailer without giving the plaintiffs the 15-month transitional period required by contract to sell their inventory. The retailer was not specified in the lawsuit.
Iconix is also accused of hindering the plaintiff’s ability to do business by, among other things, rejecting over 100 possible designs, and forcing them to create leather-based footwear that was more expensive than the usual Umbro pricepoint, resulting in “depressed sales and reduced revenue”.
