Playboy saw its shares surge more than 11% in premarket trading on Monday after the company announced a major legal victory: an $81 million arbitration award against its terminated licensee, New Handong Investment (Guangdong) Co.

The case was heard by the Hong Kong International Arbitration Centre, where Playboy’s wholly owned subsidiary, Playboy Enterprises International Inc. (PEII), argued that New Handong had engaged in persistent, material breaches of its licensing agreement. The tribunal sided squarely with Playboy, finding that:

• Playboy’s decision to terminate its license with New Handong in February 2024 was lawful and effective.
• New Handong must immediately cease use of all Playboy trademarks, imagery, and intellectual property, including production and sale of Playboy-branded goods.
• The company is liable for outstanding royalties, unpaid marketing contributions, termination fees, and accrued interest, which collectively amount to approximately $81 million.
• All of New Handong’s counterclaims were rejected.

The award is binding and non-appealable, giving Playboy a definitive win in the long-running dispute. New Handong has until September 20, 2025, to make full payment.

What Sparked the Dispute?

According to Playboy’s filings, New Handong had repeatedly failed to honor contractual obligations tied to its exclusive rights to distribute and sell Playboy-branded products in parts of Asia. The breaches reportedly involved unpaid royalties and misuse of the Playboy brand beyond what the agreement allowed.

Playboy terminated the license in 2024, but New Handong pushed back with counterclaims that sought to invalidate the termination and accuse Playboy of wrongful conduct. The arbitration tribunal rejected those claims entirely.

CEO Ben Kohn emphasized the broader implications of the award:
“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.”

The ruling underscores Playboy’s renewed focus on brand protection and licensing enforcement, as the company leans heavily on partnerships in fashion, lifestyle, and consumer goods across 180 countries.

Earlier this year, Playboy rebranded back to its iconic Playboy, Inc. name (from PLBY Group) to signal a return to its heritage as a global lifestyle powerhouse. The $81 million arbitration win strengthens its financial footing at a time when the company is exploring growth opportunities in digital commerce and global licensing.

While the award is binding, Playboy admitted in its SEC filings that it cannot guarantee the collection of the damages from New Handong. If successful, however, the payment would represent a significant financial windfall compared to Playboy’s estimated brand value of $1.4 billion.

For now, the market is rewarding the victory with investors bidding up PLBY shares as the company reasserts itself in protecting its intellectual property.

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