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Playboy sues Israeli clothing company

Chicago – Playboy Enterprises International Inc. has sued an Israeli clothing manufacturer for breach of contract and selling unauthorized Playboy-logoed items.

The lawsuit, filed in U.S. District Court in Chicago, alleges that Play All Ltd. failed to uphold its end of a licensing contract with Chicago-based Playboy and infringed on Playboy’s registered trademark by selling unauthorized merchandise emblazoned with the iconic Playboy rabbit head.

Playboy says Play All ignored Playboy’s request to stop selling unauthorized items and wants a judge to order the company to stop.

“Play All’s continuing illegal conduct therefore irreparably harms Playboy,” the lawsuit says. “It infringes and dilutes the value of Playboy’s trademarks, diminishes Playboy’s reputation and destroys the goodwill among consumers that Playboy has devoted years and millions of dollars to develop.”

Playboy alleges that Play All’s actions have caused Playboy more than $100,000 in damages.

Neither Playboy nor a lawyer for the company returned a call. A representative of Play All could not be reached for comment.

In an April 1, 2004, licensing agreement, Playboy authorized Play All to manufacture and sell certain logoed clothing and apparel in Israel, according to the lawsuit.

The items, including jewelry and handbags, were to hit store shelves no later than Nov. 1, 2004, according to the lawsuit.

Playboy alleges that Play All breached its contract in early 2005 when the Israeli company sublicensed the manufacturing and selling of unauthorized products to another company without Playboy’s permission, failed to have all items ready for sale by Nov. 1, 2004, and did not provide a required letter of credit.

Playboy wants an order that Play All cease selling all trademarked items and destroy any remaining inventory, account for sales of all authorized and unauthorized items, disgorge all profits made from selling Playboy merchandise after the Chicago company terminated its licensing contract and pay damages in an amount to be determined at trial.
 

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