72-year-old designer will receive £29m and increase non-jewel stock.
Elsa Peretti, the designer behind some of Tiffany & Co’s bestselling pieces, has signed a 20-year deal worth US$47 million (£29m) just months after she hinted at her desire to step away from the jewellery giant.
The deal was struck on December 27. To date Tiffany & Co. has been the sole licensee for the intellectual property rights necessary to make and sell jewellery and other products under Peretti’s trademarks since 1974.
In May last year, Tiffany & Co. revealed that Peretti was considering retiring from her role designing for the brand after almost 40 years. It is thought her designs account for 10% of Tiffany’s net sales.
The new 20-year agreement states that Peretti will continue retain ownership of the intellectual property of her designs and gives her a degree of influence over the promotion, display, manufacture and merchandising of her licensed products.
The new agreement requires Tiffany to display the licensed products in stores, to devote an amount of its advertising budget to the promotion of Peretti designs and to take certain actions to protect the use and registration of Peretti intellectual property – something Tiffany has been focused on, in its fight against counterfeiters.
As part of the new contract Tiffany has also agreed to increase the number of non-jewellery products created by Peretti that it carries. Over the past 60 months non-jewellery products designed by Peretti have contributed US$4 million (£2.5m) to sales.