12
Jun
2017

(EXCLUSIVE) Jay Z’s Ex Business Partners Says Mogul Cost Them Millions

Written by TJB Writer in Blog
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(EXCLUSIVE) Jay Z's Ex Business Partners Says Mogul Cost Them Millions

Jay Z

Jay Z’s Ex Business Partners Says Mogul Cost Them Millions

theJasmineBRAND.com exclusively reports, Jay-Z is accused of refusing to work with his business partners to develop new fragrances, along with blowing off his commitment to promote the brand. They believe his actions have cost them millions of dollars, and they are blasting his demands for royalties.

Here’s the latest: On June 9th, Parlux Fragrances responded to Jay Z saying they don’t own the music mogul a dime in royalties due to his refusal to pick up a finger and promote his own fragrance.

The company says Jay-Z consistently and egregiously failed to fulfill his fundamental obligations under the license agreement – despite the fact they paid his royalties in full up until his alleged breach.

Parlux says the rapper continues to do nothing but is demanding judgment of payment in the middle of the legal battle, even though they have sustained millions of dollars in damages as a result of his actions.

They point out celebrity fragrance lines needs to be regularly refreshed and revitalized by introducing new products and line extensions every year & for the celebrity to make personal appearances. Jay-Z has made zero appearances from 2013 until now. They claim he refused to work with them in developing new products which caused the brand to suffer. Parlux says any suggestion they made millions of dollars off Jay-Z by continuing to exploit the license is fiction, saying despite earning some money from the wind-down of the initial product — they have lost and continue to lose millions of dollars due to Jay-Z’s lack of support. They are demanding the judge deny Jay-Z’s motion for royalties and allow their dueling lawsuits to continue on.

(EXCLUSIVE) Jay Z's Ex Business Partners Says Mogul Cost Them Millions

Jay-Z

Here’s the backstory: The business partner, Parlux Fragrances, sued Jay Z in New York Court last year. They explained they signed a licensing deal with the music mogul back in 2012, for them to use his name and image to launch the cologne ‘Gold Jay Z’.

Per the deal, Jay-Z was to post on social media and make multiple promotional appearances to hype the launch. Parlux claimed when they tried to book him for GMA, Macy’s and Women’s Wear Daily, he declined their appearances. The deal was for Jay-Z to develop future colognes with Parlux.

However, they claimed he blew off meetings and the new fragrances never got off the ground. They were expecting to make $50 million in sales within 2 years but instead they were hemorrhaging money. Their unsold inventory was even being returned from stores. They sued Jay-Z for no less than $18 million dollars.

Jay-Z fired back counter-suing Parlux accusing them of being the one who breached the deal.

He accused them of failing to make the required payments, devote the required resources and money to promote his fragrance and blew off handing over accounting and business records. Per their deal, he would be paid a minimum of $750,000 for the first year and by the fifth year he would receive $1.75 million.

The mogul explained Parlux failed to pay the $5 million in advertising on the launch. He pointed out sales for his product dropped from $15 million in the first year to $6 million the following, blaming the lack of promotion on the drastic decrease. As a result of their breaches, he choose to exercise his option to void the agreement. He sued seeking the $1.5 million in past due royalties & advertising costs, along with damages for the harm they did to his reputation.

Last month, Jay-Z headed back to court demanding the judge grant him summary judgement in his favor. He explains Parlux has screwed him over by not paying him in royalties for 2 years, but continuing to profit handsomely off his name and trademark.

Currently, the company is retaining 100% of the profits from Jay-Z’s various fragrances. He demanded the judge award him the unpaid contractually mandated minimum royalties owed, while their dueling lawsuits continue on.

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