Exclusive: Jay-Z Said His Biz Deal With Perfume Company Stinks

- By Bossip Staff

Jay-Z Said Fragrance Co. Profiting Off Of Him

Jay-Z has headed back to court in a battle with his ex-business partner over his fragrance line.

Jigga said he hasn’t been paid a dime in two years – despite the former partner continuing to profit off of his hard work and celebrity.

The ex-business partner, Parlux Fragrances, sued the rapper 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.’

Under 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 the appearances.

The company claimed he blew off meetings and the new fragrances never got off the ground. They were expecting to make $50 million in sales within two 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.

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 in the following year and blamed the lack of promotion on the drastic decrease. As a result of their breaches, he said he chose to exercise his option to void the agreement. He sued, seeking the $1.5 million in past due royalties, plus advertising costs and damages for the harm they did to his reputation.

Then on May 5th, Jay-Z headed back to court and demanded the judge grant him partial summary judgment. He explained that now he is being screwed over by not being paid a dime in royalties even though Parlux continues to profit handsomely off his name.

The rapper said Parlux has failed to pay him the guaranteed minimum royalties required under their licensing agreement. Beyonce’s husband said he hasn’t been paid a dime in over two years. Despite this, Jay-Z said in court papers that Parlux continues to sell his fragrances with his trademark and are reaping the benefits of his hard work.

Parlux argued that due to Jay-Z’s breach of contract, they have the right to withhold his royalty payments. He says under no circumstances did their deal state a party can keep royalty payments from the other.

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

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  • http://flytimetv.net/jay-z-said-his-biz-deal-with-perfume-company-stinks/ Jay-Z Said His Biz Deal With Perfume Company Stinks – Flytime TV

    […] ex-business partner, Parlux Fragrances, sued the rapper in New York Court last year. They explained they signed a licensing deal with the […]

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