- Seed Beauty, the company that manufactures Kim Kardashian West and Kylie Jenner’s makeup lines, believes Kylie Cosmetics gave confidential trade secrets to its competitor, Coty Inc, which Jenner sold 51% of her brand to earlier this year.
- Seed is now suing Kylie Cosmetics and Coty in an effort to stop them from sharing and using those secrets.
- The lawsuit comes just days after Seed won a temporary injunction in a similar case against KKW Beauty, which Coty recently acquired 20% of, preventing it from sharing confidential information as well.
- KKW Beauty denied claims that it shared information with Coty, and though Coty and Kylie Cosmetics have not responded to the lawsuit yet, they will likely argue that Seed’s allegations are speculative and that the secrets it claims Kylie Cosmetics shared aren’t actually trade secrets.
Kardashian-Jenner’s Strike Deals With Coty Inc.
The company behind Kylie Jenner and Kim Kardashian West’s makeup lines, Seed Beauty, is taking legal action to protect its trade secrets now that both stars have massive deals with Coty Inc.
Coty Inc. is the beauty conglomerate that owns brands like CoverGirl, Sally Hansen, Rimmel, and others. It has recently made headlines for striking million-dollar deals with the sisters in what some view as an effort to refresh their image and attract a younger audience. For some time now, Coty has been struggling to keep up with its competitors in the industry, so it seems like their new strategy is to link up with more social media-driven brands like Kardashian West and Jenner’s.
Earlier this year, Coty bought 51% of Kylie Cosmetics for $600 million, and just this week, news broke that Kardashian West sold 20% of KKW Beauty to the company for $200 million.
The deals were huge for the sisters, valuing both of their brands at around $1 billion and leaving them each with net worths of $900 million. However, the deals were pretty concerning for Seed Beauty, which partnered with Jenner since her line started in 2016, taking care of logistics, manufacturing, development, storage, and distribution.
Seed also took on the same responsibilities for KKW Beauty when Kardashian West launched the line in 2017. Now, Seed Beauty is worried that Coty has, and will continue to, get access to the secrets that it believes make Seed a strong force in the beauty industry.
Seed Beauty Sues After Kylie Cosmetics Allegedly Shares Trade Secrets
On June 30, Seed Beauty filed a civil lawsuit against Coty and King Kylie, the LLC behind Kylie Cosmetics, to prevent the misappropriation of trade secrets.
The lawsuit says that because of Coty’s inability to “successfully compete in the new digital cosmetics world through its own innovation,” the company has engaged in a plan “to steal the secret sauce behind Seed,” through its deals with the sisters.
The suit claims, “Coty made a $600 million investment in King Kylie, but it really was a subterfuge to learn Seed’s confidential business methodologies.”
“Any competitor who acquired such information would be given an unfair competitive advantage,” it adds.
The suit also alleges that Kylie Cosmetics knowingly shared Seed Beauty’s confidential intellectual property and Coty knowingly accepted that information. The complaint is highly redacted, so it doesn’t specify the secrets that Seed wants to keep private, but it could include things like information about product formulations, information about the business’ core operations, and the structure of its partnerships, according to Forbes.
Seed says it repeatedly asked Kylie Cosmetics not to share certain parts of their partnership agreement over the course of negotiations with Coty, which were rumored to have begun in June of 2019.
However, according to the suit, Jenner’s team refused to confirm or deny whether or not they had shared information. Seed also says it asked Coty not to ask for, or use, its trade secrets, but Coty similarly refused to assure Seed that it wouldn’t.
Now, Seed Beauty is asking the court to permanently bar Kylie Cosmetics from disclosing it’s trade secrets. It’s also asking that the court force Coty to promise not to use information that it’s already allegedly acquired. On top of that, it wants Coty to be prevented from developing any color cosmetics with Kylie Cosmetics for a period of time that was redacted in the suit.
“This action is to stop Coty’s theft of Seed’s pioneering and proprietary digital-first business model that has revolutionized the cosmetics industry,” the suit says.
Injunction Against KKW Beauty
But again, the Seed’s concerns don’t just focus solely on Coty’s relationship with Kylie Cosmetic. In expectation of a Coty-KKW deal, Seed filed a similar lawsuit against KKW Beauty, also seeking protection of its trade secrets.
Seed filed the lawsuit on June 19, likely after learning from its experience with her sister’s deal. KKW Beauty then filed an opposition to the lawsuit, claiming that Seed’s legal action was an “attempt to stifle the success of the Kardashian-Jenner family.” It also argued that KKW Beauty did not share any trade secrets with Coty and requested that the court compel arbitration.
KKW Beauty lawsuit reads, “The purported harm to Seed is entirely speculative, unfounded, and already complete,”
“By contrast, KKW stands to suffer comparatively more significant harm if the Court were to enter the amorphous injunction proposed by Seed.”
Ultimately, the court granted the temporary order, which lasts until August 21. That order prevents the brand from sharing details about its partnership with Seed, including “the terms of those agreements, information about license use, marketing obligations, product launch and distribution, revenue sharing, intellectual property ownership, specifications, ingredients, formulas, plans and other information about Seed products.”
Still, that court order didn’t stop Kardashian West and Coty from striking a deal, which was formally announced on June 29, and this legal situation is far from over.
It’s likely that Coty and Kylie Cosmetics will both argue that Seed’s allegations are speculative and that the secrets it claims Kylie Cosmetics shared aren’t actually trade secrets.
Still, the legal battles may be worth it in Seed Beauty’s eyes, as it has built itself quite a good reputation in the industry. According to the lawsuit, Seed goes to great lengths to protect its trade secrets by doing things like limiting access to areas of its factory, requiring all employees to sign non-disclosure agreements, and having security monitor the property.
In the Beauty space, Seed is well known for its speed and efficiency thanks to what it calls its “unique business model,” which makes it capable of turning an idea into a product within weeks. The company is not only known for working with the Kardashian-Jenner’s but is also massively successful for its own line, Colourpop Cosmetics, as well as its partnership with YouTuber Tati Westbrook for her new cosmetics line.
So it’s not surprising to see Seed go to great lengths to keep its secrets to success out of its competitor’s hands.
Coty and Kylie Cosmetics have not yet formally responded to the lawsuit or issued a public comment. The first court hearing is scheduled for October, according to Insider.
See what others are saying: (Forbes) (Business Insider) (The Fashion Law)
Friendship Is on the Decline in America Compared to 30 Years Ago
While the COVID-19 pandemic is responsible for increased isolation Americans have experienced over the past year, other factors for the drop in friendships include political differences, couples marrying later, and parents spending more time with kids.
Americans Have Fewer Friends Today
A new study released by the Survey Center on American Life has essentially found that friends are in short supply in America — or rather, that “despite renewed interest in the topic of friendship in popular culture and the news media, signs suggest that the role of friends in American social life is experiencing a pronounced decline.”
Out of more than 2,019 respondents made up of U.S. adults, only 13% said they had more than 10 close friends. That’s a big drop compared to a 1990 Gallup poll, which reported that a third of U.S. adults said they had more than 10 close friends.
The poll also found that fewer Americans now say they have a “best” friend: 59% today compared to 75% in 1990.
Friendship Breakers: the Pandemic, Politics, and Work
The ongoing COVID-19 pandemic has very likely been the most direct cause of isolation over the past year.
As the poll also notes, women ages 18-29 appear to be the most affected demographic, with 43% having lost touch with at least a few friends and 16% indicating that they’re no longer in regular contact with most of their friends.
In addition to the pandemic, former President Donald Trump seems to be driving more broken friendships than perhaps most presidents. In fact, 22% of the respondents who said they ended a friendship cited Trump specifically.
According to the poll, 20% of Democrats and 10% of Republicans have ended friendships over political disagreements, with 28% of political liberals saying they would end a friendship over political differences as opposed to 10% of conservatives.
Other factors for Americans’ lost friendships include couples marrying later, parents spending more time with kids, as well as people working longer hours and being more geographically mobile.
It’s not all doom and gloom, though. While “best friends” are in shorter supply than in 1990, more than half of U.S. adults still say they have one. Another 46% of Americans have also reported making at least one new friend over the last year.
See what others are saying: (Insider) (Independent) (Axios)
NFL Says Teams Could Be Forced To Forfeit Games If Unvaccinated Players Cause COVID-19 Outbreaks
Neither team will be paid for any forfeited games, and the team that faces the outbreak must also cover all expenses for the opposing team.
NFL Issues Strong Warning to the Unvaccinated
The National Football League announced Thursday that if a game is canceled due to a COVID-19 outbreak among unvaccinated players on a certain team, that team will be forced to forfeit the match.
Additionally, the league said players on both teams will not be paid for any forfeited games, and the team that causes the game to be canceled will also be forced to cover all expenses for the opposing team. It could also face disciplinary action from the Commissioner’s Office.
As NFL.com writer Kevin Patra noted, this is “the clearest line the NFL has drawn to date and the most substantial incentive yet for owners, teams and coaches to pressure players to get vaccinated.”
While the league has not mandated that its players and staff get vaccinated, in its Thursday memo, it said that “nearly all clubs have vaccinated 100 percent of their Tier 1 and 2 staffs.” It also noted that 75% of players “are in the process of being vaccinated, and more than half the clubs have vaccination rates greater than 80 percent of their players.”
The NFL added that vaccinated players or staff who test positive and are asymptomatic will be allowed to return to work following two negative tests 24 hours apart. For unvaccinated players and staff who test positive, the NFL is deferring to its 2020 rules: 10-day isolation.
Rescheduling Vs. Canceling
Unvaccinated players — regardless of whether they test positive or not — will also be subject to more stringent protocols, including daily testing, mask-wearing, and travel restrictions.
That said, there is one potential loophole for teams that find themselves subject to outbreaks, though it could still be a longshot. The NFL will allow games to be rescheduled as long as they fit within the timeframe of its regular season.
“We do not anticipate adding a ‘19th week’ to accommodate games that cannot be rescheduled within the current 18 weeks of the regular season,” the NFL made clear in its memo.
Still, the NFL may not be as flexible as it was during 2020. For example, while it was able to reschedule all of its postponed games during that season, it did so by moving some to Tuesdays and Wednesdays.
What Players Are Saying
Currently-unvaccinated players were quick to speak out against the memo on Thursday.
“Never thought I would say this, But being put in a position to hurt my team because I don’t want to partake in the vaccine is making me question my future in the @NFL,” Arizona Cardinals wide receiver DeAndre Hopkins said in a now-deleted tweet.
Those advocating for players to get vaccinated have argued that not vaccinating yourself while engaging in a high-contact sport could still result in hurting teammates. In fact, several athletes have reported lingering effects following COVID-19 diagnoses, and some worry that long-term lung issues could cut their careers short.
Similar to Hopkins, Cincinnati Bengals defensive tackle DJ Reader tweeted, “Talk about getting your hand forced smh.”
Las Vegas Raiders running back even compared this year’s season to “playing in jail” in a now-deleted tweet, saying, “read the rules-know em like you know your plays.”
Meanwhile, Indianapolis Colts owner Jim Irsay said he hopes his team is “headed toward 100%” vaccination following the memo.
California Sues Activision Blizzard Over “Frat Boy” Culture and Rampant Sexual Harassment
The lawsuit details how certain executives at the company assaulted and harassed female employees and how one woman ultimately committed suicide after having a nude photo of herself leaked around the office.
The Lawsuit’s Disturbing Harassment Details
The California Department of Fair Employment and Housing (DFEH) has lobbed a massive gender discrimination lawsuit against video game developer Blizzard Entertainment and its parent company Activision Blizzard, accusing the two of creating a culture of “constant sexual harassment.”
The details of the suit, which was launched Wednesday following two years of investigations, are disturbing. In some instances, it describes not just allegations of sexual harassment but also of sexual assault.
For example, DFEH claims Blizzard’s workplaces are seeped in “frat boy” culture and said female employees have been “subjected to numerous sexual comments and advances, groping and unwanted physical touching, and other forms of harassment.”
The suit cites specific instances of harassment through the accounts of female employees, including one who said random male employees would approach her at her worksite and comment on her breasts.
Other female employees working on the World of Warcraft team alleged that male employees and even supervisors would hit on them and make derogatory comments about rape.
In the most tragic outcome cited in the lawsuit, DFEH said one female employee committed suicide on a company trip after having a sexual relationship with a male supervisor who had brought along a butt plug and lubricant. According to the suit, she had also faced harassment at a holiday party when male co-workers began passing around a photo of her vagina.
DFEH Names Involved Executives
The allegations go straight to the top of Blizzard Entertainment’s chain of command.
In fact, the suit claims President J. Allen Brack both knew about this behavior and enabled it.
On top of that, an unnamed former Chief Technology Officer was allegedly seen “groping inebriated female employees at company events.”
The suit also specifically names Alex Afrasiabi, World of Warcraft’s senior creative director, saying he was “permitted to engage in blatant sexual harassment with little to no repercussions.”
“Afrasiabi was so known to engage in harassment of females that his suite” during company events “was nicknamed the “[Cosby] Suite” after alleged rapist Bill [Cosby],” the suit claims.
Female Employees Face Retaliation and Gender Discrimination
It’s not just that nothing was being done when female employees reported these instances, according to the DFEH. The agency also said those women faced retaliation, including being deprived of work, unwillingly transferred to other departments, and even being laid off at higher rates than male employees.
Separately, another employee alleged she was told she couldn’t be promoted as a manager because “she might get pregnant and like being a mom too much,” even though she had already assumed some of the responsibilities of a manager.
Other employees who had actually gotten pregnant said they were given negative evaluations while on maternity leave.
In 2019, it was reported by multiple outlets that Blizzard was offering third-party fertility and pregnancy tracking services to employees but was also receiving that anonymized data back.
Blizzard Denounces Lawsuit
In response, Blizzard has called California’s lawsuit “irresponsible” and from “unaccountable State bureaucrats that are driving many of the State’s best businesses out of California.”
Blizzard has also defended its workplace, saying, “Over the past several years and continuing since the initial investigation started, we’ve made significant changes to address company culture and reflect more diversity within our leadership teams.”
Others Speak Up
Since this lawsuit came out, at least five former employees have publicly corroborated several of its details.
That includes one woman who wrote on Twitter, “I left Blizzard after my boss gaslit me so badly my hair started falling out. My profit sharing, which I relied on to make ends meet, was docked due to “underperforming”, and when I went to HR to fight it with proof against his claims, I was told “maybe you are underperforming.”
“The fucked up part? I HATED leaving. Blizzard was my dream job and I loved the work I did there.”
Others, such as gamer Alanah Pearce, have recounted their own experiences working in gaming as a result of the allegations.
“It’s jarring to me to see so many people on Twitter, who are around the industry, who are like gaming fans who don’t work in the industry, and go ‘Oh my, God, this is horrific.’ When my reaction is, ‘Oh, so it’s normal…” Pearce said in a Twitch stream uploaded to YouTube Thursday.
“Even when I worked in Tech before, the stories that I fucking have — just the shit that they did to me… Iike I was repeatedly grabbed and groped at work functions, and I would complain — like to their faces — I’d be like, ‘Don’t fucking touch me,’ and then, they would be like, ‘Haha, of course. I’m so sorry. I don’t know what I was thinking,’ and then they would do it again because me reacting negatively to it was what made it funny to them.”
Pearce went on to recount other very disturbing details about her time at that job, saying she eventually decided one day to not go back altogether.
“But if you see this shit, and you see ‘bros being bros’ and being like, ‘Who can fuck this girl first?’ Just please fucking say something. It’s so much harder for women to say something,” she added.