Jammin Java Corp loses Marley Coffee licence
Jammin Java Corp (JJC), which operated until recently as Marley Coffee, told shareholders this week that it was seeking a temporary restraining order against 56 Hope Road Music (56HR) Ltd and Hope Road Merchandising (HRM) Ltd — a Florida limited liability company — from terminating the licence allowing it to use the Marley Coffee label.
The Nevada, US-based company is also claiming that the companies have been allowing former Jammin Java chairman Rohan Marley to use the name in his own coffee ventures within the island of Jamaica.
The action follows the resignation of Rohan Marley, founder of Marley Coffee, as chairman of Jammin Java in June.
In an application for the temporary restraining order made before the United States District Court, Central District of California, Western Division, Anh Tran, the current president of JJC, is seeking to stop Hope Road and HRM from withdrawing the licence.
“JJC’s growth and branding efforts, the viability of JJC’s entire business is wholly dependent on its right to utilise the Marley Coffee brand name and other intellectual property owned by 56HR and licensed to JJC. At the same time, the Marley Coffee brand would have little value but for our efforts,” Tran said.
In a letter to shareholders on the ongoing legal battle, JJC noted that on July 21, 2016, HRM provided it with a notice of the termination of a short-term licence agreement entered into with HRM in June 2016 and demanded that all use of the trademarks regarding the Marley Coffee name cease immediately.
JJC said that it believed the termination notice, as well as the termination of the prior long-term licence, “is without merit and that 56HR had no reasonable basis for such terminations”.
It also noted that following the notice, both parties agreed to start discussions to resolve the termination and enter into a forbearance agreement.
One of the conditions of the forbearance agreement was for the company to engage a restructuring consultant to provide a picture of the company and a potential turnaround plan.
However, this was rejected by 56HR and on August 1, 2016, 56HR and HRM filed a complaint in the Superior Court of the State of California, County of Los Angeles, Central Division (Case No BC628981).
On August 4, 2016, the matter was removed to the United States District Court for the Central District of California, where the temporary restraining order was requested by JJC and responses to the suit were also filed.
In the court application, JJC said that without a licence it will default on its obligations under various supply and distribution agreements.
It said it will also “default on various credit agreements and debt service requirements; will be unable to service existing accounts, will be unable to obtain new accounts, will be unable to continue marketing initiatives; will be unable to continue negotiations with potential equity partners; will lose all investor and shareholder value; will inevitably lose all of its current customers; and will be forced to terminate all of its employees”.
“Combined, these things all result in great and irreparable harm to JJC. Simply put, the company will die,” the president said in the application.
It was noted by JJC that Jammin Java, trading as Marley Coffee, was the “sixth fastest growing company in the single-serve coffee category, which is the fastest growing sector of the coffee industry and the fastest growing part of JJC’s business in 2015 with 73 per cent year over year growth”.
In an update provided yesterday, a spokesperson for the Marley family said: “The court denied Jammin Java’s request for a TRO (temporary restraining order) and Jammin Java withdrew its request for a preliminary injunction. Thus, the licence remains terminated.”
The response was channelled through Lonnie Soury Communications, Inc in New York.