Tiffany pays designer Elsa Perretti $47.3m to keep her bestselling Starfish and Open Heart necklaces for another 20 years

Last year, Elsa Peretti, the designer behind some of Tiffany and Co.'s most iconic pieces, tried to sever her licensing agreement with the jeweller and take her designs with her.
But the jewellery giant and 72-year-old Italian designer have renewed their 40-year-long partnership with a deal that will pay the designer $47.3 million over the next 20 years.
Since 1974, young women worldwide have saved up for, or been gifted, a Ms Peretti-designed Tiffany Open Heart, Starfish or Bean necklace as a mark of life's milestones - and the new deal puts an end to speculation that her iconic designs would soon cease to be available.

Jewellery icons: Elsa Peretti designed both the Open Heart and Starfish necklaces, some of Tiffany's most iconic pieces

In May 2012, the company said it made an offer to buy the designer's intellectual property, however according to the report filed by Tiffany, the two sides could not come to an agreement on a price.
Since 2009, Ms Peretti's jewellery has accounted for ten per cent of Tiffany’s net sales, and in 2011, Tiffany reported revenues of $3.64 billion.

 

The jewellery designer has always received a royalty for Tiffany’s use of her intellectual property, as she is responsible for some of the brands most celebrated pieces.
A Tiffany spokesman told WWD: 'Elsa’s designs are as timeless as they can be. It was our intention to make sure that her designs remain at Tiffany for a long period of time.'

Breakfast at Tiffany's: Hundreds of Holly Golightly fans have been able to buy a little piece of the movie's magic thanks to Ms Peretti's designs

Last year, the company said in a statement: 'Tiffany has made a firm offer to Ms Peretti in an amount that is based upon the value of the Peretti intellectual property to Tiffany.'
If the deal was severed, however, Tiffany said its financial results might be 'adversely affected.'
Initially, Ms Peretti wanted Tiffany to purchase her intellectual property rights so she could 'retire' from her post.

Deal breaker: Tiffany will pay Ms Peretti $47.3m to ensure her designs remain with the retailer

But the two parties were unable to come to an agreement, the spokesman said.
But seven months later, according to the deal dated December 27, Ms Peretti will retain her intellectual property, but Tiffany will pay the designer $47.3 million to ensure that her designs remain with the retailer for another 20 years.
Tiffany will also pay Ms Peretti a royalty of $450,000 'per fiscal year during the term,' which would earn the designer another $9 million.
Under the new contract, any heir, estate, trustee or permitted successor  of Ms Peretti will be bound by the terms of the Tiffany deal.
It is thanks to Ms Peretti's designs that hundreds of thousands of Holly Golightly fans have been able to buy a little piece of Breakfast at Tiffany's.
Her iconic and simple pieces can retail for $185 in sterling silver.
If Ms Peretti had terminated the licensing agreement with Tiffany, the company would only retain its rights to her designs for another six months.
After the six-month period, Tiffany would have one year to sell any Ms Peretti-designed products on hand or on order, much to the dismay of young girls everywhere.