AceShowbiz - The estate of Bob Marley has filed a lawsuit against global cannabis company Tilray, accusing it of failing to pay nearly $11.3 million in licensing fees related to the late Jamaican music legend's official marijuana brand, Marley Natural.

The legal action, initiated in Delaware on March 27 and obtained by Billboard, claims that Tilray used Bob Marley's name, image, likeness, signature, and trademarks on Marley Natural cannabis products without fulfilling the agreed-upon royalty payments. The estate, operating through Marley Green LLC, alleges that Tilray and its partners engaged in "elaborate efforts to avoid paying" and orchestrated a "scheme to defraud."

According to the complaint, the dispute arose after the licensing agreement had been active for several years. The defendants, including Tilray and its former principals, allegedly became reluctant to pay the contractually required minimum royalty fees to Marley Green. The lawsuit states, "Conscious that they could be on the hook for these minimum royalty payments as guarantors, defendants set out to shield their assets from the guarantee." However, the estate insists that Tilray cannot evade its financial responsibilities.

The Marley estate, led by Cedella Marley, daughter of the late singer, has been actively managing and expanding the Bob Marley legacy through various ventures. These include the Tuff Gong record label, the music technology company House of Marley, and Marley Coffee.

In 2014, the estate partnered with Privateer Holdings, a cannabis-focused private equity firm, to develop Marley Natural. The partnership allowed Privateer to utilize Bob Marley's intellectual property in exchange for regular licensing payments to the estate. This agreement laid the foundation for the marijuana brand's market presence.

However, in 2019, Privateer Holdings became a subsidiary of Tilray through a downstream merger. The lawsuit alleges that following this corporate restructuring, Tilray began falling behind on its royalty payments to the Marley estate. By 2023, the unpaid balance reportedly grew to nearly $13 million.

When Bob Marley's estate terminated the licensing agreement due to nonpayment, Tilray allegedly refused to settle the outstanding debts. The company claimed that none of its business entities were parties to the licensing contract after its 2019 corporate reorganization.

The estate contends that Tilray's downstream merger was a "fraudulent transfer" designed deliberately to protect assets and avoid paying royalties. Specifically, the lawsuit asserts that Tilray shifted all liability for licensing payments into an empty shell entity without funds, leaving the estate without recourse.

The lawsuit demands $11.3 million from Tilray, covering the $13 million in unpaid royalties minus a $1.7 million settlement already recovered by the Marley heirs from a related subsidiary. The claims include fraud and breach of contract related to the licensing agreement.

Representatives for Tilray did not immediately respond to requests for comment on the lawsuit as of March 30.

Bob Marley's estate continues to defend the integrity of his brand and legacy amid these legal challenges, emphasizing the importance of honoring agreements tied to his name and image in the expanding cannabis market.