Canadian Marijuana Giant Tilray Being Sued For Dropping Out Of Bob Marley Licensing Deal

Tilray Brands TLRY is being sued by Docklight Brands Inc. for dropping out of the Bob Marley cannabis products licensing deal, writes Green Market Report.

What happened: Docklight claims that pulling out the contract cost them licensing fees and royalties and led to completely losing the Bob Marley license.

Docklight and Tilray subsidiary High Park Holdings entered into a licensing agreement some five years ago that would have allowed High Park to sell and advertise Bob Marley-branded cannabis products. According to the lawsuit, after Tilray merged with Aphria in 2021, creating a company with a combined market cap of $3.3 billion, High Park stopped making quarterly payments per the contract.

High Park says the payments were delayed because the new leadership team wasn’t familiar with the agreement, though Docklight is now claiming that management had enough time to look into it during the due diligence process before the merger.

The marijuana behemoth said the license was too expensive, even though it was reporting strong sales of these products. Docklight claims that High Park was selling Marley-branded products without paying royalties, among other agreement violations.

All this led to Docklight being unable to afford the licensing fees to the Marley estate, which resulted in the termination of the license.

More details about the case can be read in Green Market Report.

Price Action:

Tilray shares were trading 2.06% higher at $1.74 at the time of reporting Friday.

Photo: Benzinga edit with images by Billion Photos and Yarygin by Shutterstock