Playboy Awarded $81 Million in Damages in Arbitration Against Former Licensee
Playboy (Nasdaq: PLBY) has secured a significant legal victory in its arbitration against former licensee New Handong Investment, with the Hong Kong International Arbitration Tribunal awarding damages of approximately $81 million.
The binding, non-appealable decision validates Playboy's termination of the license agreement due to New Handong's uncured material breaches. The tribunal ordered New Handong to cease all use of Playboy's property and materials, including production and sale of Playboy products. The damages cover outstanding guaranteed royalties, termination fees, unpaid marketing expenses, plus interest.
New Handong must make full payment by September 20, 2025, though Playboy acknowledges potential challenges in collecting the awarded damages.
Playboy (Nasdaq: PLBY) ha ottenuto una vittoria legale importante nell'arbitrato contro l'ex licenziatario New Handong Investment: il Tribunale Arbitrale Internazionale di Hong Kong ha assegnato danni per circa 81 milioni di dollari.
La decisione vincolante e non impugnabile conferma la risoluzione del contratto di licenza da parte di Playboy per violazioni materiali non sanate da New Handong. Il tribunale ha ordinato a New Handong di cessare ogni utilizzo dei beni e materiali di Playboy, inclusa la produzione e la vendita di prodotti Playboy. I danni comprendono le royalties garantite non corrisposte, penali di risoluzione, spese di marketing non pagate e interessi.
New Handong dovrà effettuare il pagamento integrale entro il 20 settembre 2025, sebbene Playboy riconosca possibili difficoltà nel recuperare l'importo accordato.
Playboy (Nasdaq: PLBY) ha logrado una victoria legal significativa en su arbitraje contra el ex licenciatario New Handong Investment, con el Tribunal Internacional de Arbitraje de Hong Kong que ha otorgado daños por aproximadamente 81 millones de dólares.
La decisión vinculante y no apelable valida la terminación por parte de Playboy del contrato de licencia debido a incumplimientos materiales no subsanados por New Handong. El tribunal ordenó a New Handong que cese todo uso de la propiedad y los materiales de Playboy, incluida la producción y venta de productos Playboy. Los daños cubren regalías garantizadas pendientes, tarifas de terminación, gastos de marketing no pagados y los intereses.
New Handong debe efectuar el pago íntegro antes del 20 de septiembre de 2025, aunque Playboy reconoce posibles dificultades para cobrar el monto adjudicado.
Playboy (Nasdaq: PLBY)가 전 라이센시 뉴한동인베스트먼트를 상대로 한 중재에서 중대한 법적 승리를 거두었으며, 홍콩 국제 중재 재판소가 약 8,100만 달러의 손해배상을 판정했습니다.
이 확정적이며 항소 불가한 판결은 뉴한동의 중대한 계약 위반이 시정되지 않아 Playboy가 라이선스 계약을 해지한 조치를 인정한 것입니다. 재판소는 뉴한동에 대해 Playboy의 자산 및 자료 사용 전면 금지를 명령했으며, 여기에는 Playboy 제품의 생산 및 판매도 포함됩니다. 배상액에는 미지급 보장 로열티, 해지 수수료, 미지급 마케팅 비용 및 이자가 포함됩니다.
뉴한동은 2025년 9월 20일까지 전액을 지급해야 하며, Playboy는 판정된 배상금 회수에 어려움이 있을 수 있음을 인정하고 있습니다.
Playboy (Nasdaq: PLBY) a obtenu une victoire juridique importante dans son arbitrage contre l'ancien licencié New Handong Investment, le Tribunal arbitral international de Hong Kong ayant accordé des dommages et intérêts d'environ 81 millions de dollars.
La décision, contraignante et non susceptible d'appel, valide la résiliation par Playboy du contrat de licence en raison de manquements matériels non réparés par New Handong. Le tribunal a ordonné à New Handong de cesser toute utilisation des biens et documents de Playboy, y compris la production et la vente de produits Playboy. L'indemnisation couvre les redevances garanties impayées, les frais de résiliation, les dépenses marketing non réglées ainsi que les intérêts.
New Handong doit s'acquitter du montant intégral avant le 20 septembre 2025, bien que Playboy reconnaisse d'éventuelles difficultés à recouvrer la somme attribuée.
Playboy (Nasdaq: PLBY) hat in einem Schiedsverfahren gegen den ehemaligen Lizenznehmer New Handong Investment einen bedeutsamen rechtlichen Sieg errungen: Das Hongkonger Internationale Schiedsgericht hat Schadensersatz in Höhe von rund 81 Millionen US-Dollar zugesprochen.
Die verbindliche und nicht anfechtbare Entscheidung bestätigt Playboys Kündigung des Lizenzvertrags wegen nicht behobener wesentlicher Vertragsverstöße von New Handong. Das Schiedsgericht wies New Handong an, die Nutzung sämtlicher Playboy-Eigentümerrechte und -Materialien einzustellen, einschließlich der Produktion und des Verkaufs von Playboy-Produkten. Die Schadenssumme umfasst ausstehende garantierte Lizenzgebühren, Kündigungsgebühren, unbezahlte Marketingkosten sowie Zinsen.
New Handong muss die vollständige Zahlung bis zum 20. September 2025 leisten, wobei Playboy mögliche Schwierigkeiten bei der Eintreibung der zugesprochenen Summe anerkennt.
- Successful arbitration verdict awarding $81 million in damages
- Legal validation of license agreement termination protecting brand value
- Tribunal's order to cease unauthorized use of Playboy's intellectual property
- All counterclaims by New Handong were rejected
- Uncertainty regarding ability to collect awarded damages from New Handong
- Loss of licensing partnership in an important market
Insights
Playboy's $81M arbitration win reinforces brand value but collection uncertainty remains a significant risk factor.
This arbitration victory represents a significant legal win for Playboy in its dispute with former Chinese licensee New Handong. The Hong Kong tribunal's binding, non-appealable decision validates Playboy's termination of the license agreement due to New Handong's "ongoing, uncured material breaches." Beyond the
The legal implications extend beyond the monetary award. This decision establishes valuable precedent for Playboy in protecting its intellectual property rights against licensee violations. The tribunal's rejection of all New Handong's counterclaims further strengthens Playboy's position. However, I see two critical risk factors: First, despite the September 20 payment deadline, enforcement challenges in international arbitration awards are common, especially with Chinese entities. The company appropriately cautions that collection is uncertain. Second, preventing continued unauthorized use in Chinese markets remains challenging despite the cease-use order, potentially requiring additional enforcement actions. The outcome highlights both the value of Playboy's intellectual property and the complexities of international brand protection.
From a financial perspective, this ruling has material positive implications for Playboy's balance sheet if collection proves successful. The
The company explicitly warns that it "cannot provide assurance that it will be able to collect any or all monetary damages from New Handong." This creates significant uncertainty around the realizability of this asset. Until collection occurs, accounting standards would likely require Playboy to either not recognize the award or establish a substantial valuation allowance against it. The collection risk is particularly elevated given cross-border enforcement challenges with Chinese entities.
Beyond the immediate financial impact, the ruling carries strategic importance by protecting Playboy's licensing-based business model. By establishing consequences for licensee breaches, Playboy strengthens its negotiating position with current and future partners. The decision also removes uncertainty regarding the terminated relationship, allowing management to pursue alternative licensing arrangements in the affected markets. Given Playboy's transition toward an asset-light intellectual property licensing business model in recent years, this precedent-setting enforcement action demonstrates management's commitment to protecting the company's most valuable asset – its brand.
LOS ANGELES, Sept. 08, 2025 (GLOBE NEWSWIRE) -- Playboy, Inc. (Nasdaq: PLBY) (the “Company” or “Playboy”), one of the most recognizable and iconic brands in the world, announced today that it has prevailed in its arbitration against its terminated licensee, New Handong Investment (Guangdong) Co., Ltd. (“New Handong”), and has been awarded damages of approximately
As previously described in further detail in the Company’s periodic reports, including in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2025, filed with the U.S. Securities and Exchange Commission on August 12, 2025, on February 8, 2024, a wholly-owned subsidiary of Playboy, Playboy Enterprises International, Inc. (together with certain of its wholly-owned subsidiaries, “PEII”), initiated arbitration in the Hong Kong International Arbitration Centre (the “Arbitration”) against New Handong relating to PEII’s termination of its license agreement with New Handong due to ongoing, uncured material breaches by New Handong.
On September 5, 2025, the Arbitration tribunal (the “Tribunal”) issued its binding, non-appealable decision (the “Decision”) in the Arbitration, including the following:
- the termination notice issued by PEII was found to be lawful and effective;
- New Handong was ordered to cease any further use of Playboy’s property and materials, including but not limited to the production, sale, or distribution of Playboy products; and
- New Handong is required to make payments to PEII for guaranteed royalties outstanding at the time of termination, a termination fee, and unpaid marketing expenses, plus interest thereon, and certain other fees and expenses, totaling approximately
$81 million .
The Tribunal rejected all of New Handong’s counterclaims as well as certain other claims brought by PEII.
Playboy’s Chief Executive Officer and President, Ben Kohn, said “We believe justice has been served with this ruling by the Hong Kong Arbitration Tribunal. Playboy is one of the most recognizable brands in the world and the award highlights the value of the brand. Playboy will continue to vigorously protect its official licensed partners, brand and intellectual property worldwide.”
New Handong has until September 20, 2025, to make full payment of the damages awarded. 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.
About Playboy, Inc.
Playboy, Inc. is a global pleasure and leisure company connecting consumers with products, content, and experiences that help them lead happier, more fulfilling lives. Playboy is one of the most recognizable brands in the world, with products and content available in approximately 180 countries. Playboy’s mission — to create a culture where all people can pursue pleasure — builds upon over 70 years of creating groundbreaking media and hospitality experiences and fighting for cultural progress rooted in the core values of equality, freedom of expression and the idea that pleasure is a fundamental human right. Learn more at http://www.playboy.com and https://investors.playboy.com.
Cautionary Statement About Forward-Looking Statements and Information
This press release includes forward-looking statements reflecting assumptions, expectations, projections, intentions or beliefs about future events that are intended to qualify for the “safe harbor” from liability established by the Private Securities Litigation Reform Act of 1995. In particular, these include, but are not limited to, statements relating to enforcement of the Decision, as well as the potential for, or outcome of, any other related legal proceedings, the cessation of infringing activities by New Handong and its affiliates, the collection of all amounts awarded to the Company’s subsidiaries pursuant to the Decision, as well as statements reflecting expectations, intentions, assumptions or beliefs about future events, and other statements that do not relate strictly to historical or current facts. These forward-looking statements are not guarantees of future performance, involve or rely on a number of risks, uncertainties, and assumptions that are difficult to predict or are beyond the Company’s control, and reflect Company management’s beliefs and assumptions based on information available at the time the statements were made. The Company cautions you that actual outcomes and results may differ materially from what is expressed, implied or forecasted by such forward-looking statements and that any or all of such forward-looking statements may turn out to be inaccurate or incorrect. Forward-looking statements can be affected by inaccurate assumptions and by known or unknown risks and uncertainties, including the ultimate outcome of pending legal proceedings and the Company’s inability to enforce or collect the amount awarded in the Arbitration. All forward-looking statements made by the Company and its management are expressly qualified by these cautionary statements. Although forward-looking statements reflect the Company’s good faith beliefs at the time the statements were made, reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause our actual outcomes to differ materially from anticipated future outcomes expressed or implied by such forward-looking statements. In addition, the Company does not undertake and expressly disclaims any obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of this press release, or otherwise.
Contact:
Investors: FNK IR – Rob Fink / Matt Chesler, CFA – investors@playboy.com
Media: press@playboy.com
FAQ
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When does New Handong have to pay the arbitration damages to Playboy?
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Will Playboy be able to collect the $81 million arbitration award?
