The First District Illinois Appellate Court today unanimously affirmed a jury verdict that resulted in a judgment in excess of $18 million in favor of Ellis George client Playboy.
Today’s decision is the latest in a six-year legal battle that started with a lawsuit filed against Playboy by two former Playboy licensees (Play Beverages and CirTran). Years ago, Play Beverages had obtained from Playboy a license to use the world famous Playboy trademarks on an energy drink. In the lawsuit, Play Beverages and CirTran alleged that Playboy had unlawfully terminated the license and wrongfully interfered with their distribution of the energy drinks. The companies sought damages of $29 million. Playboy counterclaimed, asserting that the termination was proper and seeking damages against Play Beverages and CirTran for trademark infringement, counterfeiting, and breach of contract.
The case proceeded to a three-week jury trial in Chicago, with Ellis George partner Pete Ross serving as Playboy’s lead trial counsel. The jury sided entirely with Playboy, finding it had done nothing wrong, and the license had been properly terminated. The jury also found that Play Beverages had breached the license agreement, and both Play Beverages and CirTran had willfully infringed upon and counterfeited Playboy’s trademarks. The jury awarded Playboy $6.6 million in damages. The trial court then enhanced the verdict and awarded attorneys’ fees and costs, resulting in a judgment in favor of Playboy in excess of $18 million.
In today’s decision upholding the judgment in full, the appellate court rejected challenges to the trial proceedings, including assertions that the trial court had erred in refusing to interrupt the jurors’ deliberations after jurors mentioned they were “scared of the men in the gallery” who were affiliated with Play Beverages and CirTran. Commenting on the appellate court decision to Law360, Ross said “We think the right result was obvious and we’re gratified that the court of appeals found it to be so.”
