On Sept. 26, Jewelex New York paid $410,000 for the patent and intellectual property for the contour band (pictured), Firestar Diamond’s best-selling design, making it the biggest IP sale in that company’s bankruptcy auction.
The purchase came with $163,000 in inventory.
Other big IP sales at the auctions, which took place Sept. 26–Oct. 4, included KGS Jewels’ $280,000 purchase of the patent for the 106-facet Patriot Star. That lot came with $260,000 in inventory.
Authentic Brands Group (ABG) paid $50,000 for perhaps the auction’s most intriguing lot: the intellectual property to the phrase “Diamonds are a girl’s best friend,” as well as accompanying websites. A. Jaffe, Firestar’s former sister company, had registered that trademark in 2011.
The purchase was certainly fitting, as ABG also owns the intellectual property assets for the Marilyn Monroe brand. Monroe sang “Diamonds Are a Girl’s Best Friend” in 1953 film Gentlemen Prefer Blondes.
ABG, which purchased the Neil Lane brand last year, is currently working with Adama Partners to market a line of Marilyn Monroe–themed jewelry,. It did not respond to a request for additional comment from JCK.
The big winner from the auction’s inventory side was SimplexDiam. The New York City–based closeout company was the auction’s largest single buyer, paying $1.91 million for 28 lots, which had a $3.9 million book value.
SimplexDiam plans to display its new merchandise at the upcoming Jewelers International Showcase (JIS), which takes place Oct. 19–22 in Miami. JIS is owned by JCK Events.
Angelo Palmieri, president of Gem Certification & Assurance Lab (GCAL), the appraiser to the Chapter 11 trustee, promises that “millions more” in inventory will soon be available and will be listed on Firestarauction.com.
Firestar Diamond, A. Jaffe, and Fantasy Inc. filed for Chapter 11 in New York federal court on Feb. 26. A. Jaffe has since been purchased by Paramount Gems.
The U.S. Trustee has announced that the deadline for any person or entity to file a proof of claim against any of the three debtors is Dec. 11. Proof of claim forms can be found here.
(Image of the contour band courtesy of GCAL)