Initially, Peretti wanted Tiffany to purchase her intellectual property rights, but the two parties were unable to come to an agreement.
According to the new deal, dated Dec. 27, Peretti retains her intellectual property, but Tiffany will pay the designer $47.3 million to ensure that her designs remain at the retailer for 20 years. Peretti will also receive a basic royalty of $450,000 "per fiscal year during the term" plus a royalty of 5 percent of net sales during the term. That would earn Peretti another $9 million, plus the 5 percent royalty.
Additionally, Tiffany will help grow "Peretti objects," or home goods and other accessories. In order to sell more Peretti home wares and accessories, Tiffany will reduce the retail prices of those items in the U.S. by 20 percent.
WWD summed up the deal by saying, "Peretti may not sell, lease or otherwise dispose of her intellectual property unless the buyer expressly agrees with Tiffany to be bound by the provisions of the deal. The agreement also provides that any heir, estate, trustee or permitted successor or assignee of Peretti will be bound by the terms of the Tiffany deal."
