Paris Hilton has sued Antebi Footwear for unpaid royalties earned from a licensing agreement for the heiress’ signature footwear line. Hilton’s company filed the breach of contract suit in New York last week. Antebi Footwear is a production firm that manufactures and distributes footwear lines including Kooba and David Tutera. Antebi entered into a licensing agreement with Hilton in 2009 for the manufacture and production of her line.
The suit alleges that Antebi has attempted to “reap millions of dollars in profits from exploiting the lucrative brand of international celebrity Paris Hilton without paying compensation it agreed to pay for its license.” The suit goes on to allege that Antebi refuses to pay the sums owed to Hilton under the agreement because it believes that Hilton’s company prejudiced its contract rights, and that she is owed over $1 million dollars in royalties based off of 8% royalties of net sales. Hilton is also seeking a court order to terminate the licensing agreement which through the end of this year.
It’s not surprising that Hilton is seeking to be paid the royalties owed to her. There are many celebrity clothing and product lines that do well purely because of the name recognition and fame of the celebrity. As such, the company, with whom the celebrity enters into a licensing agreement, is oftentimes guaranteed to gain a profit because of the celebrity’s fame. As such, celebrities have to always protect their image and ensure they are being fairly and justly compensated for use of their name, image and likeness. If Hilton can prove that Antebi has failed to live up to the licensing agreement, she will surely be able to win her suit. Any sort of loss for Antebi could prove fatal because it could be a forewarning to other celebrities seeking licensing agreements for their product lines. We shall see who will prevail.
source: “Paris Hilton Sues Shoe Company for $1M In Unpaid Royalties,” The New York Post.
image: Watch Mojo