(EXCLUSIVE) Kardashian Sisters Ex Business Partner Returns To Court Over $10 Million Makeup Lawsuit
theJasmineBRAND.com exclusively reports, Kim, Kourtney & Khloe Kardashian’s $10 million dollar battle over their makeup line is far from over. The famous sisters’ former business partner returned to a federal appeals court, demanding the injunction against them from using the reality stars name or likeness to sell the Kardashian Beauty makeup line and the company is accusing the judge who sided with the sisters of abusing his discretion and demanding his decision be overturned.
Here’s the latest: August 23rd, the judge came back with his decision on the Kardashian’s motion for a preliminary injunction against Haven from selling the products with their name and face plastered on the packaging and he sided with the reality star sisters by granting their injunction prohibiting the company from continuing to sell the Kardashian line along with using Kim, Kourtney & Khloe’s name or likeness in any manner.
The judge agreed with the sisters that they had the right to terminate the licensing deal with Haven Beauty when the company stopped paying them royalties. He pointed out the contract specifically states the Kardashians are to be paid regardless of their social media posts or scheduled appearances and once Haven stopped paying the girls, they forfeited their right to continue using the Kardashian mark.
Since the sisters properly terminated the agreement, the former licensee – Haven – cannot continue to use their mark. The order prohibits the company from continuing to infringe on the sisters marks, names, images and likenesses in connection with the sale of cosmetic products.
The judge explained the Kardashian built their entire empire from using their face and name and without control over that it could drastically harm their numerous business. The judge stated,
the Kardashians submit extensive evidence of irreparable harm, including, most importantly, that they no longer have any control over their reputation and good will related to Haven Beauty’s unauthorized use of their trademark and the distribution of Kardashian Beauty-branded cosmetic products
He explained that the reality stars have invested considerable efforts in establishing their public personae including filming several successful television shows, their usage of numerous social media platforms to communicate and interact with their fans, have various other ventures in the fashion, cosmetic and publishing industries and even own multiple clothing stores.
If they lost the right to control the use of their name and likenesses, the Kardashians will be unable to exploit these efforts in establishing their public personae.
Haven was ordered to cease advertising or promoting the Kardashian makeup line or from selling any further products along with displaying or advertising the names of Kim, Kourtney and Khloe or using their images online.
Then days after the order, Haven Beauty was granted a stay of the injunction by the same judge due to them heading to the Appeal Court and filing an emergency motion for stay pending Appeal.
The company blasts the judge’s decision to grant the Kardashian’s the injunction, explaining they provided substantial evidence showing their company would be irreparably harmed by an injunction, including having to shut down all business operations and lay off all of its employees along with having no chance to recoup its $12 million investment into the Kardashian Beauty line.
Haven explains the sisters breached the agreement by promoting and endorsing the other beauty products, which was a direct violation of their deal which gave Haven the exclusive right to license their name and likeness for the line.
The filing adds, “the Kardashians did not dispute in the proceedings below that they have in fact engaged in these rampant violations of the very trademarks and publicity rights they sought to enforce, nor did they submit countervailing evidence
Further, they say “at the heart of that campaign was the Kardashians’ deception of consumers into believing that competing makeup products and brands were validly sponsored and endorsed by the Kardashians” when in fact they were not.
Haven says the judge abused his discretion by granting the Kardashians an injunction – which prohibited them from continuing to sell the beauty line and ordered them to cease using Kim, Kourtney & Khloe’s face or name to promote or market their brand.
They explain they never infringed on the sisters trademarks because they were granted the rights to use the marks exclusively and therefore could not possibly infringe on the marks
Haven is demanding the Appeal Court overturned the injunction and allow them to continue on with their legal battle with the Kardashian sisters without being prohibited from selling the products or they say their company will collapse in the near future.
Here’s the backstory: Back in March, the Kardashian sisters were slapped with a $200 million dollar lawsuit by the company Hillair Capital Management.
The company explained they came to the sister’s rescue by investing over $10 million dollars into their makeup line, “Kardashian Beauty”, after their former business partner went under.
Kim, Kourtney and Khloe partnered with Boldface in 2012 to launch a line of products named “Khroma Beauty”. Eventually, the sisters had to change the name of the line due to legal reasons and Boldface collapsed leaving their new “Kardashian Beauty” in need of an investor.
Hillair Capital bought out Boldface and invested the $10 million dollars to save the sisters line.
However, the company filed suit accusing them of not following the terms of their contract by not posting about “Kardashian Beauty” on their social media accounts. They demanded the Kardashian pay up the $10 million they invested along with $180 million for lost revenue and other damages.
At the time, that lawsuit was still pending in Federal Court.
Later in the year, Haven Beauty – owned by Hillair Capital – launched “Kardashian Beauty” and began selling the products without the sister’s approval.
A rep for the Kardashians released a statement in which the sisters blasted the company and claimed they have no involvement in the makeup line. The statement explained,
Over the weekend, new cosmetic products were announced on the Kardashian Beauty cosmetic social media pages with pictures and statements from Kourtney, Kim and Khloe. The three Kardashian sisters are not in business with this cosmetic company.
The rep finished by saying,
The people selling the Kardashian Beauty brand and their predatory owners knew this and are attempting to mislead the Kardashians’ fans by stating that the Kardashians are still involved. This outrageous conduct is a legal matter and will be dealt with accordingly.
Haven Beauty then slapped the sisters with a Federal lawsuit demanding a judge grant them an injunction against the Kardashians from trashing the makeup line in the media.
They claimed that the sisters did have a deal with them to launch “Kardashian Beauty” and they only are claiming otherwise in an attempt to back out of the agreement they made. They sued demanding an injunction along with $10 million from the sisters.
The judge shut down Haven’s motion for a temporary injunction against the sisters, but both parties will soon go before the judge to argue their case.
Haven Beauty filed docs following being denied the TRO (temporary restraining order) explaining if the court doesn’t help them stop the Kardashian sisters, it could ruin their entire business which they invested $10 million into, result in laying off their entire staff within 30 days, ruining their goodwill, and they will lose $932k in purchase orders for those orders along with disrupt their entire business operation.
Further, they blasted the sisters for accusing them of screwing them out of royalty payments. They explained that the Kardashians have not taken any steps necessary for any royalty payments to come due under the terms of their deal.
Haven said the reality stars failed to show up to their production day, marketing day & photo shoots, along with personal appearances. Therefore, they claim they had every right to suspend royalty payments until the sisters complied with their agreement.
The company said,
It cannot be that by simply refusing to perform their obligations under the LA (licensing agreement), the Kardashian can have their cake and eat it too; imposing upon Haven the Hobson’s choice of either …”
They believe that paying the sisters for work they didn’t is destroying their entire business.
Haven pleaded for the judge to allow them to seek a permanent injunction against the Kardashians from continuing to trash their makeup line in the press.