Seed Beauty is Suing Coty Over KKW and Kylie Cosmetics


Following the 20% stake Coty took in Kim Kardashian's beauty business and the majority stake it took in Kylie Cosmetics in January, Seed Beauty is suing the multinational giant to protect its trade secrets associated with its former business partners.

Per Forbes, the suit was filed on June 30 in California’s superior court and claims Kylie Cosmetics has leaked Seed Beauty trade secrets to Coty. The secrets in question, which Seed has kept tightly controlled for years, are not detailed.

Forbes quotes the suit: “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.”

Seed reportedly warned Kylie Cosmetics not to disclose Seed's methodologies but that the brand had declined to confirm whether or not such information was shared with Coty. Seed is now concerned the same sharing could take place with the Kim Kardashian deal. Coty has also allegedly declined to pledge to not ask for such information.

Per Forbes: "Seed is asking the court to permanently bar Kylie Cosmetics from disclosing Seed’s trade secrets, force Coty to promise not to use any information it has already received and prevent Coty from developing any color cosmetics products with Kylie Cosmetics for a period of time that was redacted in the suit."

Seed filed a similar suit against KKW Beauty on June 19.


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