When Parlux Fragrances launched a multi-million dollar lawsuit against Jay-Z, they expected to walk away with a big paycheck. But now a court has decided that it’ll be the perfume company paying up, as they’ve been ordered to pay the rapper millions in royalties.
According to Page Six, an appellate court determined that Parlux Fragrances will have to pay Jay-Z $4.5 million in royalties. Jay-Z had filed a counterclaim for the royalties after Parlux initially sued him in 2016 for $67 million, claiming he breached contract during their Gold Jay-Z cologne collaboration.
At the time, Parlux claimed that Jay-Z didn’t fulfill his promotional duties, which included refusing to appear on Women’s Wear Daily and Good Morning America.
Jay-Z had to testify at the New York jury trial last fall, which lasted for over three weeks. He didn’t hold back, calling the company “crappy” and “lazy.” Jay-Z added that he had problems with the “quality of lazy work” Parlux was doing from the beginning.
His team echoed similar sentiments and denied Parlux’s allegations, rather suggesting the company didn’t market the cologne properly, which resulted in poor sales. They added that Parlux declined to provide Jay-Z’s team with the proper resources and information to properly market the cologne.
The rapper countersued for unpaid royalties amounting for $2.7 million. In the end, although the jury determined that Jay-Z hadn’t breached his contract, they also didn’t grant his countersuit claim. So, neither party was awarded a sum in the end.
Jay-Z expressed his gratitude towards the jury following the outcome, stating, "I'd like to express my gratitude to the jury, especially during these difficult times.” Nonetheless, he was quick to appeal the decision about his counter claim, which has worked out in his favor this time.
During the appeal trial, the judge awarded him $4.5 million in unpaid royalties, which was almost double what he was seeking in his countersuit claim. The court found that Parlux Fragrances was guilty of profiting from cologne sales after they had stopped paying Jay-Z royalties.
“The record is clear: Parlux sold licensed products after July 31, 2015, but failed to pay royalties on those sales,” Justice John Higgitt explained of the decision.
As per Complex, Parlux Fragrances still has the option to appeal the original decision, too, though it’s unclear if they’ve taken steps to do so. Following the jury trial, representatives for the company said they were “disappointed” by the outcome and believed they provided a “strong case.”
Despite his win, TMZ reports that Jay-Z’s lawyer Alex Spiro has declined to publicly comment on the outcome of the appeal.
Sources: Page Six, Complex, TMZ,
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