Israeli Court Orders Eyewear Maker Verso to Pay Omer Adam's Company $250,000

An Israeli court has ordered American eyewear manufacturer Verso to pay 866,000 shekels (approximately $250,000) to PAI, a company owned by Israeli singer Omer Adam and his father Yaniv, as part of a six-year legal dispute. Additionally, the optics chain Opticana will receive 800,000 shekels (approximately $230,000) through mutual settlements. The Tel Aviv District Court partially granted cross-claims and approved a compensation scheme based on an expert's findings, though no definitive ruling was made on the merits of the mutual accusations.

Under the court's scheme, Verso is to pay Opticana 2.9 million shekels, while Opticana will pay Verso 2.1 million shekels, resulting in the net payment to Opticana. The dispute began in late 2018 when Omer Adam partnered with Verso for an advertising campaign featuring model Ruslana, based on Adam's hit song "Where Are All Your Friends." Opticana later joined the venture, investing millions in promoting the new brand in Israel.

Approximately a year later, the partnership dissolved, leading to legal battles in both Israel and the United States. Verso ceased sales in Israel, prompting Opticana and Adam to launch a new eyewear brand, CATTLEYA. Verso sued Opticana for 13.6 million shekels, alleging trademark infringement and commercial violations, claiming Opticana appropriated the brand's registered mark and reputation.

In response, PAI sued Verso for 8 million shekels, citing breach of contract and misrepresentation. Opticana also sued Verso for 13.9 million shekels, asserting exclusive Israeli sales rights, claiming it purchased 7,400 units and couldn't sell half due to defects, and had invested millions in advertising and Adam's participation.

The court-appointed expert, auditor Hamutal Cohen, assessed Opticana's damages at 5.6 million shekels but recommended halving it, citing Opticana's assumption of commercial risk and Verso's advertising also promoting Opticana's other brands. Cohen found PAI had not proven damage to Adam's reputation, as he maintained a significant public presence, and most lost profit claims were unsubstantiated. Cohen valued Adam's campaign participation at 1 million shekels, though he was paid 634,000 shekels. The expert also rejected Verso's 13.6 million shekel claim, deeming its 50-year profit projection unacceptable and finding no link between Verso's expenses and the disputed brand.