WEBVTT 99:59:59.999 --> 99:59:59.999 Glamour Dolls failed to comply with 99:59:59.999 --> 99:59:59.999 those obligations when it engaged in a 99:59:59.999 --> 99:59:59.999 failed online advertising campaign on 99:59:59.999 --> 99:59:59.999 Kickstarter, using LFI, Lisa Frank's brand 99:59:59.999 --> 99:59:59.999 without LFI's approval and then refused to 99:59:59.999 --> 99:59:59.999 pay royalties due when LFI properly 99:59:59.999 --> 99:59:59.999 terminated the party's contracts as a 99:59:59.999 --> 99:59:59.999 result of Glamour Dolls' misconduct. 99:59:59.999 --> 99:59:59.999 Wait a minute. She didn't know about the 99:59:59.999 --> 99:59:59.999 Kickstarter? Hello my friend, I will 99:59:59.999 --> 99:59:59.999 honestly tell you that until late last 99:59:59.999 --> 99:59:59.999 night, I did not think that I was filming 99:59:59.999 --> 99:59:59.999 a video about Lisa Frank and Glamour 99:59:59.999 --> 99:59:59.999 Dolls today. I actually had a full video 99:59:59.999 --> 99:59:59.999 planned about preservative-free cosmetics 99:59:59.999 --> 99:59:59.999 and how freaking ridiculous and dangerous 99:59:59.999 --> 99:59:59.999 preservative-free cosmetics are. But then 99:59:59.999 --> 99:59:59.999 I got a very interesting comment from a 99:59:59.999 --> 99:59:59.999 person named "Fake Goth Girl." Okay. I get 99:59:59.999 --> 99:59:59.999 a link. The link is to a court document 99:59:59.999 --> 99:59:59.999 that I had not previously had access to. 99:59:59.999 --> 99:59:59.999 This document is Lisa Frank's point of 99:59:59.999 --> 99:59:59.999 view. It is her counter suit. This is Lisa 99:59:59.999 --> 99:59:59.999 Frank saying "Glamour Dolls is the bad 99:59:59.999 --> 99:59:59.999 guy, not me. I didn't do anything wrong - 99:59:59.999 --> 99:59:59.999 they're the ones that did something 99:59:59.999 --> 99:59:59.999 wrong." So in today's video, I want to go 99:59:59.999 --> 99:59:59.999 over Lisa's side of things - what she says 99:59:59.999 --> 99:59:59.999 in the court documents is the reason why 99:59:59.999 --> 99:59:59.999 she pulled out of her contract with 99:59:59.999 --> 99:59:59.999 Glamour Dolls that left backers of the 99:59:59.999 --> 99:59:59.999 Kickstarter out all of their money - over 99:59:59.999 --> 99:59:59.999 $400,000 of their money, including my 99:59:59.999 --> 99:59:59.999 money. My $75? Gone. If you have no idea 99:59:59.999 --> 99:59:59.999 what I'm talking about, that's because 99:59:59.999 --> 99:59:59.999 this is Part 2. I strongly strongly 99:59:59.999 --> 99:59:59.999 suggest you please watch Part 1 of this. 99:59:59.999 --> 99:59:59.999 It will be linked below. It will be up in 99:59:59.999 --> 99:59:59.999 a card. It is the background for this 99:59:59.999 --> 99:59:59.999 video - this video might not make sense 99:59:59.999 --> 99:59:59.999 if you don't watch that one first. If you 99:59:59.999 --> 99:59:59.999 don't feel like you have time for an hour 99:59:59.999 --> 99:59:59.999 and a half long video, what you can do is 99:59:59.999 --> 99:59:59.999 you can scrub through the timestamps, kind 99:59:59.999 --> 99:59:59.999 of get the idea of what it is. You can 99:59:59.999 --> 99:59:59.999 also play it on 1.5 speed if you want to. 99:59:59.999 --> 99:59:59.999 And I will tell you that the average 99:59:59.999 --> 99:59:59.999 amount of watch time on that video for a 99:59:59.999 --> 99:59:59.999 single view is about 40 minutes. That has 99:59:59.999 --> 99:59:59.999 literally never happened on my channel. 99:59:59.999 --> 99:59:59.999 This is a story that I think you want to 99:59:59.999 --> 99:59:59.999 hear and and that I think that you are 99:59:59.999 --> 99:59:59.999 going to be engaged in if you choose to. 99:59:59.999 --> 99:59:59.999 That being said, we are starting at Part 99:59:59.999 --> 99:59:59.999 2. I'm assuming at this point that you 99:59:59.999 --> 99:59:59.999 have seen that video and that you have 99:59:59.999 --> 99:59:59.999 that background knowledge. And also, 99:59:59.999 --> 99:59:59.999 side note, I mentioned this at the end of 99:59:59.999 --> 99:59:59.999 the video, but there's probably about 40 99:59:59.999 --> 99:59:59.999 comments mentioning Bailey Sarian's video 99:59:59.999 --> 99:59:59.999 on Lisa Frank, based on the Jezebel 99:59:59.999 --> 99:59:59.999 article that we talked about in the first 99:59:59.999 --> 99:59:59.999 part of this. Yes, I am fully aware of 99:59:59.999 --> 99:59:59.999 Bailey's video. I have met Bailey. I have 99:59:59.999 --> 99:59:59.999 collaborated with Bailey. Bailey did a 99:59:59.999 --> 99:59:59.999 fantastic job on that video. That video is 99:59:59.999 --> 99:59:59.999 more about Lisa Frank as a person, so if 99:59:59.999 --> 99:59:59.999 you want even more context for the story, 99:59:59.999 --> 99:59:59.999 I highly recommend you go watch Bailey's 99:59:59.999 --> 99:59:59.999 video as well. What we're gonna do with 99:59:59.999 --> 99:59:59.999 this part is I'm actually gonna put Lisa 99:59:59.999 --> 99:59:59.999 Frank's lawsuit on the side of me so if 99:59:59.999 --> 99:59:59.999 you are fluent in Legalese, you can follow 99:59:59.999 --> 99:59:59.999 along and see the match up of what I'm 99:59:59.999 --> 99:59:59.999 saying. Surprisingly, a lot of is is 99:59:59.999 --> 99:59:59.999 pretty clear cut and there isn't a ton of 99:59:59.999 --> 99:59:59.999 lawyer language in this that was difficult 99:59:59.999 --> 99:59:59.999 to understand. So if you would like to 99:59:59.999 --> 99:59:59.999 read along, it is going to be next to me 99:59:59.999 --> 99:59:59.999 over here. Here we go. So this is what 99:59:59.999 --> 99:59:59.999 Lisa says. This is her side of things. 99:59:59.999 --> 99:59:59.999 This is all about the deal in 2016, the 99:59:59.999 --> 99:59:59.999 original deal that she had. Lisa says they 99:59:59.999 --> 99:59:59.999 struck the deal in June of 2016 that would 99:59:59.999 --> 99:59:59.999 end on December 31st of 2017 - that 99:59:59.999 --> 99:59:59.999 matches up with Glamour Dolls' side, so 99:59:59.999 --> 99:59:59.999 I'm assuming there's legal contracts, so 99:59:59.999 --> 99:59:59.999 there's evidence of this. So Glamour Dolls 99:59:59.999 --> 99:59:59.999 in that original contract, agreed to pay 99:59:59.999 --> 99:59:59.999 Lisa Frank 15% royalty on the net sales 99:59:59.999 --> 99:59:59.999 of the products made under the deal, with 99:59:59.999 --> 99:59:59.999 a minimum payment of $100,000 for the 99:59:59.999 --> 99:59:59.999 duration of the agreement, including a 99:59:59.999 --> 99:59:59.999 $25,000 advance. Glamour Dolls promised to 99:59:59.999 --> 99:59:59.999 do their best, to make, sell, promote, and 99:59:59.999 --> 99:59:59.999 market the products to get as many sales 99:59:59.999 --> 99:59:59.999 as possible, always focusing on high 99:59:59.999 --> 99:59:59.999 quality. Now this part is very very 99:59:59.999 --> 99:59:59.999 important because this is really the root 99:59:59.999 --> 99:59:59.999 of why everything went wrong. They had to 99:59:59.999 --> 99:59:59.999 get Lisa Frank's approval on literally 99:59:59.999 --> 99:59:59.999 everything, from the design concepts to 99:59:59.999 --> 99:59:59.999 the artwork, to the molds for production, 99:59:59.999 --> 99:59:59.999 to the final product samples before going 99:59:59.999 --> 99:59:59.999 into production. Lisa Frank had the right 99:59:59.999 --> 99:59:59.999 to approve or reject the elements and 99:59:59.999 --> 99:59:59.999 Glamour Dolls had to follow Lisa Frank's 99:59:59.999 --> 99:59:59.999 directions on quality standards. Now 99:59:59.999 --> 99:59:59.999 listen to this because this is part of the 99:59:59.999 --> 99:59:59.999 reason why things were taking so long. So, 99:59:59.999 --> 99:59:59.999 for designs, Glamour Dolls had to wait up 99:59:59.999 --> 99:59:59.999 to 10 business days - that's about two 99:59:59.999 --> 99:59:59.999 weeks or so - for Lisa Frank to approve 99:59:59.999 --> 99:59:59.999 or reject anything that they submitted to 99:59:59.999 --> 99:59:59.999 her. If Lisa didn't respond in time, 99:59:59.999 --> 99:59:59.999 Glamour Dolls was allowed to ask after 99:59:59.999 --> 99:59:59.999 those 10 business days, "Hey, what's going 99:59:59.999 --> 99:59:59.999 on? I need a full description of why you 99:59:59.999 --> 99:59:59.999 reject this or I need an approval." But 99:59:59.999 --> 99:59:59.999 this is the kicker! Because even after 99:59:59.999 --> 99:59:59.999 approval, and remember, this is according 99:59:59.999 --> 99:59:59.999 to Lisa herself, Lisa could stop the 99:59:59.999 --> 99:59:59.999 production and distribution of the 99:59:59.999 --> 99:59:59.999 products if they didn't meet her quality 99:59:59.999 --> 99:59:59.999 standards. That's a subjective thing - 99:59:59.999 --> 99:59:59.999 that is not something that can be 99:59:59.999 --> 99:59:59.999 measured. Lisa can just for any reason, 99:59:59.999 --> 99:59:59.999 just say "This doesn't meet my quality 99:59:59.999 --> 99:59:59.999 standards" and stop production at any 99:59:59.999 --> 99:59:59.999 point. And it wasn't just for production 99:59:59.999 --> 99:59:59.999 of product. It also had to do with 99:59:59.999 --> 99:59:59.999 advertising, packaging, display methods, 99:59:59.999 --> 99:59:59.999 press releases - anything using Lisa Frank 99:59:59.999 --> 99:59:59.999 artwork - Glamour Dolls had to run this by 99:59:59.999 --> 99:59:59.999 Lisa. They had to wait for those 10 99:59:59.999 --> 99:59:59.999 business days and then if she didn't 99:59:59.999 --> 99:59:59.999 respond in 10 business days, then they had 99:59:59.999 --> 99:59:59.999 to poke her about it and be like "Dude, 99:59:59.999 --> 99:59:59.999 what's going on?" They had to keep poking 99:59:59.999 --> 99:59:59.999 her if she didn't respond after those 10 99:59:59.999 --> 99:59:59.999 business days. So remember this original 99:59:59.999 --> 99:59:59.999 contract that I personally believe was to 99:59:59.999 --> 99:59:59.999 create the blush, the highlighter, and the 99:59:59.999 --> 99:59:59.999 two brushes - that contract was ending 99:59:59.999 --> 99:59:59.999 in December. But remember the Kickstarter 99:59:59.999 --> 99:59:59.999 had started in February. We're now in 99:59:59.999 --> 99:59:59.999 December. February - they promised backers 99:59:59.999 --> 99:59:59.999 10 additional products beyond these four 99:59:59.999 --> 99:59:59.999 that had already been funded. Lisa's 99:59:59.999 --> 99:59:59.999 contract is about to end, so they need to 99:59:59.999 --> 99:59:59.999 start a new contract. This is what Lisa 99:59:59.999 --> 99:59:59.999 says was in the new contract: same 15% 99:59:59.999 --> 99:59:59.999 royalty on the net sales of the products 99:59:59.999 --> 99:59:59.999 plus 20% royalty on sales made directly to 99:59:59.999 --> 99:59:59.999 retail customers. So this would be if 99:59:59.999 --> 99:59:59.999 people bought it off of Ipsy's marketplace 99:59:59.999 --> 99:59:59.999 or if people bought it from Hot Topic, 99:59:59.999 --> 99:59:59.999 or at one point they were talking to 99:59:59.999 --> 99:59:59.999 Walmart - any of those, Lisa would get a 99:59:59.999 --> 99:59:59.999 20% royalty off of. Beyond that, in the 99:59:59.999 --> 99:59:59.999 first contract, Lisa asked for at least 99:59:59.999 --> 99:59:59.999 $100,000 for her fees. In the new 99:59:59.999 --> 99:59:59.999 contract, Lisa upped that to $500,000. 99:59:59.999 --> 99:59:59.999 That included an up front payment of 99:59:59.999 --> 99:59:59.999 $125,000 that needed to be paid when the 99:59:59.999 --> 99:59:59.999 contract was signed. Three more payments 99:59:59.999 --> 99:59:59.999 would be paid throughout the year to total 99:59:59.999 --> 99:59:59.999 that $500,000. The rules for making the 99:59:59.999 --> 99:59:59.999 products were pretty much the same as the 99:59:59.999 --> 99:59:59.999 first contract. All of the levels of "you 99:59:59.999 --> 99:59:59.999 need to send it to Lisa and she needs to 99:59:59.999 --> 99:59:59.999 approve it" and then the 10 business days 99:59:59.999 --> 99:59:59.999 - all of that was pretty much the same. 99:59:59.999 --> 99:59:59.999 The only thing that changed, which we'll 99:59:59.999 --> 99:59:59.999 find out more about in just a minute, is 99:59:59.999 --> 99:59:59.999 that they did not have to get pre-shipment 99:59:59.999 --> 99:59:59.999 approval. So Lisa has already approved 99:59:59.999 --> 99:59:59.999 the final draft of the product, they have 99:59:59.999 --> 99:59:59.999 put that into production, they now have 99:59:59.999 --> 99:59:59.999 the products - they've got thousands and 99:59:59.999 --> 99:59:59.999 thousands of these products - they don't 99:59:59.999 --> 99:59:59.999 have to send those products to Lisa for 99:59:59.999 --> 99:59:59.999 approval anymore. But there is a clause - 99:59:59.999 --> 99:59:59.999 because of course there is - if there were 99:59:59.999 --> 99:59:59.999 any production problems, if after all of 99:59:59.999 --> 99:59:59.999 these things were sent out and Lisa 99:59:59.999 --> 99:59:59.999 decided that there was a production 99:59:59.999 --> 99:59:59.999 problem, there was something she didn't 99:59:59.999 --> 99:59:59.999 like, Glamour Dolls would have to pay 99:59:59.999 --> 99:59:59.999 damages for that. What would those 99:59:59.999 --> 99:59:59.999 damages be? I have no idea, it's not in 99:59:59.999 --> 99:59:59.999 here. Another thing that's very important 99:59:59.999 --> 99:59:59.999 in Lisa's side of the story is that they 99:59:59.999 --> 99:59:59.999 said that Lisa could end the deal 99:59:59.999 --> 99:59:59.999 immediately if Glamour Dolls broke certain 99:59:59.999 --> 99:59:59.999 rules, like not following the approval 99:59:59.999 --> 99:59:59.999 process or having production issues 3 99:59:59.999 --> 99:59:59.999 times. If Lisa decided that she was 99:59:59.999 --> 99:59:59.999 going to terminate the agreement, Glamour 99:59:59.999 --> 99:59:59.999 Dolls had to not only stop making 99:59:59.999 --> 99:59:59.999 products, they had to stop selling their 99:59:59.999 --> 99:59:59.999 existing products. Then they had to turn 99:59:59.999 --> 99:59:59.999 over the rights to the artwork. Anything 99:59:59.999 --> 99:59:59.999 that Lisa had created for Glamour Dolls 99:59:59.999 --> 99:59:59.999 would now be owned by Lisa. And you might 99:59:59.999 --> 99:59:59.999 be seeing where this might be going - 99:59:59.999 --> 99:59:59.999 maybe if you watched part 1. Because she 99:59:59.999 --> 99:59:59.999 did that. That happened. In context. you 99:59:59.999 --> 99:59:59.999 have to remember that this is 3 months 99:59:59.999 --> 99:59:59.999 past the date that Glamour Dolls had 99:59:59.999 --> 99:59:59.999 promised products would be done and 99:59:59.999 --> 99:59:59.999 shipped to backers. So they are deep deep 99:59:59.999 --> 99:59:59.999 in it now. They are sending out that 99:59:59.999 --> 99:59:59.999 digital Christmas card, where people can 99:59:59.999 --> 99:59:59.999 send it to their families, saying "Hey, 99:59:59.999 --> 99:59:59.999 you know, you might be getting some Lisa 99:59:59.999 --> 99:59:59.999 Frank products that I bought for you at 99:59:59.999 --> 99:59:59.999 some point. This is what's coming." That's 99:59:59.999 --> 99:59:59.999 where we're at. A lot of the backers are 99:59:59.999 --> 99:59:59.999 already irritated by this point. From 99:59:59.999 --> 99:59:59.999 Lisa's side, she says in her court 99:59:59.999 --> 99:59:59.999 documents that LFI, or Lisa Frank 99:59:59.999 --> 99:59:59.999 Incorporated, fully performed its 99:59:59.999 --> 99:59:59.999 obligations under the license agreements - 99:59:59.999 --> 99:59:59.999 I do believe Glamour Dolls would argue 99:59:59.999 --> 99:59:59.999 against that. They say specifically 99:59:59.999 --> 99:59:59.999 Glamour Dolls repeatedly failed to meet 99:59:59.999 --> 99:59:59.999 their responsibilities under the agreemnts 99:59:59.999 --> 99:59:59.999 they had with Lisa Frank. This is how Lisa 99:59:59.999 --> 99:59:59.999 says Glamour Dolls messed up. And 99:59:59.999 --> 99:59:59.999 remember, she's going to have to prove 99:59:59.999 --> 99:59:59.999 this for her counter suit. This is what 99:59:59.999 --> 99:59:59.999 she says - she says they didn't put in 99:59:59.999 --> 99:59:59.999 enough effort to produce, distribute, 99:59:59.999 --> 99:59:59.999 promote, and sell the products that they 99:59:59.999 --> 99:59:59.999 were supposed to. She says that they 99:59:59.999 --> 99:59:59.999 didn't aim to sell as many high quality 99:59:59.999 --> 99:59:59.999 products as they could, that they had 99:59:59.999 --> 99:59:59.999 signed off in their contract. She says that 99:59:59.999 --> 99:59:59.999 they use Lisa Frank artwork in ads and 99:59:59.999 --> 99:59:59.999 packaging without getting approval first, 99:59:59.999 --> 99:59:59.999 which was against their rules of the 99:59:59.999 --> 99:59:59.999 contract. She says Glamour Dolls was late 99:59:59.999 --> 99:59:59.999 in making and delivering the products, 99:59:59.999 --> 99:59:59.999 which they were. She says that Glamour 99:59:59.999 --> 99:59:59.999 Dolls didn't follow the agreed upon 99:59:59.999 --> 99:59:59.999 process for getting products inspected 99:59:59.999 --> 99:59:59.999 and approved, that they didn't pay the 99:59:59.999 --> 99:59:59.999 royalties and the minimum amounts that 99:59:59.999 --> 99:59:59.999 they were supposed to, and that they used 99:59:59.999 --> 99:59:59.999 the Kickstarter to sell products without 99:59:59.999 --> 99:59:59.999 getting the okay from Lisa Frank 99:59:59.999 --> 99:59:59.999 Incorporated, which was of course not 99:59:59.999 --> 99:59:59.999 allowed. Finally, they say that Glamour 99:59:59.999 --> 99:59:59.999 Dolls promised products to backers and 99:59:59.999 --> 99:59:59.999 then never shipped them out, which is 99:59:59.999 --> 99:59:59.999 true. But the question is: why didn't they 99:59:59.999 --> 99:59:59.999 ship them out? What was stopping them 99:59:59.999 --> 99:59:59.999 from doing it? Was it a fault of Glamour 99:59:59.999 --> 99:59:59.999 Dolls or was it a fault of Lisa? We're 99:59:59.999 --> 99:59:59.999 still in Lisa's perspective, so let's 99:59:59.999 --> 99:59:59.999 follow that. Lisa says that even through 99:59:59.999 --> 99:59:59.999 all of the things that I just listed - the 99:59:59.999 --> 99:59:59.999 things that are in Lisa's filing - she 99:59:59.999 --> 99:59:59.999 continued to try to work with Glamour 99:59:59.999 --> 99:59:59.999 Dolls to make things work. She says she 99:59:59.999 --> 99:59:59.999 did this only because she felt like, if 99:59:59.999 --> 99:59:59.999 she didn't continue with Glamour Dolls and 99:59:59.999 --> 99:59:59.999 see this through and get the backers what 99:59:59.999 --> 99:59:59.999 they ordered, that it would damage Lisa 99:59:59.999 --> 99:59:59.999 Frank. It would damage her and her brand. 99:59:59.999 --> 99:59:59.999 It wasn't about making sure that people 99:59:59.999 --> 99:59:59.999 got what they paid for, it was about the 99:59:59.999 --> 99:59:59.999 damage it would cause to her reputation 99:59:59.999 --> 99:59:59.999 and her brand's reputation. She says in 99:59:59.999 --> 99:59:59.999 her statement that, you know, that Glamour 99:59:59.999 --> 99:59:59.999 Dolls had made all these promises and 99:59:59.999 --> 99:59:59.999 they failed to go through on them, that 99:59:59.999 --> 99:59:59.999 they even said that they were shipping 99:59:59.999 --> 99:59:59.999 things to people that they never shipped 99:59:59.999 --> 99:59:59.999 to them, which I don't know if it's 99:59:59.999 --> 99:59:59.999 actually true. Because from what I've 99:59:59.999 --> 99:59:59.999 seen, anybody that was supposed to get 99:59:59.999 --> 99:59:59.999 the eyeshadow and the bronzer and the 99:59:59.999 --> 99:59:59.999 postcard did get those things. There is 99:59:59.999 --> 99:59:59.999 some question, at least in the comments 99:59:59.999 --> 99:59:59.999 underneath my last video of whether people 99:59:59.999 --> 99:59:59.999 who ordered the brush separately, whether 99:59:59.999 --> 99:59:59.999 they actually got their brush. So maybe 99:59:59.999 --> 99:59:59.999 that's what Lisa is talking about. Lisa 99:59:59.999 --> 99:59:59.999 says that Glamour Dolls ignored rules 99:59:59.999 --> 99:59:59.999 that they had to follow to get Lisa's 99:59:59.999 --> 99:59:59.999 approval before making anything. She says 99:59:59.999 --> 99:59:59.999 that they attempted to make or change 99:59:59.999 --> 99:59:59.999 products without talking to her first. 99:59:59.999 --> 99:59:59.999 And also that they didn't give her the 99:59:59.999 --> 99:59:59.999 samples required that she needed to 99:59:59.999 --> 99:59:59.999 review. The perspective here is that 99:59:59.999 --> 99:59:59.999 because of those failures, people started 99:59:59.999 --> 99:59:59.999 blaming Lisa Frank and not Glamour Dolls, 99:59:59.999 --> 99:59:59.999 where she's saying it wasn't her fault, 99:59:59.999 --> 99:59:59.999 it was Glamour Dolls' fault. She said that 99:59:59.999 --> 99:59:59.999 people began to think that Lisa Frank was 99:59:59.999 --> 99:59:59.999 scamming