UAE Vogue Publisher Seeks to Block US Owner From Launching Its Version

United Arab Emirates-based Nervora Fashion, publisher of Vogue and Wired for the Middle East market, is seeking a preliminary injunction and temporary restraining order against Advance Magazine Publishers, said its petition (docket 1:24-cv-04805) Monday in U.S. District Court for Southern New York in Manhattan.

Advance intends to release a public statement this week stating that Nervora’s license to publish Vogue “is not being renewed and that Advance is launching its own business” in the Middle East, said the petition. This will cause “irreparable harm to Nervora’s business, its reputation, and its goodwill” with its customers, advertisers and partners, said the petition.

The petition, which also seeks expedited discovery in aid of arbitration against respondent Advance, seeks to enjoin the New York-based publisher of Vogue, GQ and Vanity Fair from making any public announcement about “the purported expiration or termination” of a May 1, 2016, brand licensing agreement between the parties and/or a January 2025 “relaunch” of Vogue Arabia by Advance.

Nervora also seeks an order enjoining Advance from “discussing any such purported expiration/termination and/or relaunch with third parties, including but not limited to potential advertisers,” and from soliciting or recruiting any Nervora employees in connection with a “purported expiration/termination and/or relaunch, during the pendency of arbitration” between the parties before the International Chamber of Commerce.

Advance hasn't negotiated toward a renewal of the license agreement in good faith, said the petition. Instead, it has forced Nervora to provide “extensive information including presentations and financial forecasts" and “demanded” that Nervora propose terms different from existing material terms in the agreement, the petition said. The respondent hasn't provided “a shred of information about what terms Advance believes should be included,” it said.

Nervora initiated the arbitration on an emergency basis June 22, asserting that Advance should not be allowed to avoid its contractual obligations “and reap the benefits of the substantial investment and resources” Nervora invested in the Vogue brand and business in the region, said the petition.

When the public announcement of Advance's plan reaches the Middle East media market, “advertising for 2024 and beyond is likely to cease or be dramatically lessened, during the most important period of the year,” when 50% of 2024 revenue is forecast to be generated, said the petition. Some advertisers “will almost certainly stop doing business with Nervora permanently,” personnel will leave “and otherwise become unmotivated,” talent partnerships will be affected, and the magazine's quality will suffer as a result, it said: “Nervora’s business operations will be immediately disrupted and Nervora’s business will be ruined,” it said.

Since Advance has indicated it will begin “immediately” to recruit employees for Vogue in the Middle East, Nervora seeks immediate injunctive relief to prevent it from attempting to recruit any of its employees pending resolution of the dispute in arbitration, said the petition. “At present, the individuals with the most significant knowledge of the Vogue business in the Core Territories all work for Nervora,” it said. By stating it intends to recruit for its own business for 2025, Advance “clearly intends to attempt to poach Nervora employees for the new business,” even while the term of the license agreement has over six months remaining, it said. Damages from solicitation of employees can’t be rectified financially “and are extremely difficult to calculate,” it said.

The arbitration seeks declaratory relief, an order that Advance “negotiate in good faith” within the framework of the licensing agreement, and a finding that Advance breached the agreement by “acting in bad faith during the term and failed to negotiate in good faith toward renewal.” Nervora also requests an order that Advance must pay damages for the alleged contractual breach and be allowed limited expedited discovery, so it can prepare for the evidentiary hearing on its application for a preliminary injunction, the petition said.