In a lawsuit brought last week, B.U.M. Equipment LLC accused Larry Hansel Clothing LLC and its principal, Rampage founder Larry Hansel, of breach of contract for failing to pay royalty fees. According to a complaint filed March 17 in Los Angeles Superior Court, Hansel and the company, then known as Rampage Clothing Co., in 1997 appointed S.O.S. Management LLC as its licensing agent for certain Rampage trademarks. In 2004, the parties entered a settlement terminating parts of S.O.S.’s agency licensing agreements and granting it a royalty commission of 16.6 percent of Rampage’s royalties from certain companies. According to the suit, when Iconix Brand Group Inc. bought Rampage in 2005, Larry Hansel Clothing voluntarily assumed Rampage’s royalty commitments to S.O.S., but stopped making payments in early 2008. S.O.S. assigned its rights to the payments to B.U.M. Equipment last year. In court documents B.U.M. said it is entitled to royalty commissions of $133,102.20. The company is seeking the unpaid fees, court costs and unspecified relief. Larry Hansel Clothing said it had not yet seen the suit and could not comment.
Separately, the suit filed by Iconix in February against Hansel and his firm has been settled. Iconix had accused Hansel of violating terms of an agreement barring him from competing against Rampage, which he founded in 1983 and sold to Iconix in 2005 for $45.9 million in cash and stock, by preparing a competitive line prior to the December 2008 expiration of a noncompete clause. The parties declined to disclose terms of the settlement.