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Kirloskar Brothers update on license of trademark

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Capital Market
Last Updated : Jul 05 2018 | 11:50 AM IST
Kirloskar Brothers, being the original owner of the trademark 'Kirloskar' (trademark) has assigned to Kirloskar Proprietary (KPL) for the purpose of making KPL a central repository for holding various trademarks and logos on behalf of the various entities forming part of the Kirloskar Group.

Such assignments were made by the Company to KPL through various agreements, the first of which was entered into in 1967, on the understanding that KPL would license the Trademark back to the Company. KPL had accordingly, from time to time, entered into various user agreements with KBL, granting KBL the license/ right to use the Trademark with respect to certain products which KBL was manufacturing.

The Company has received communications from KPL:

(a) calling upon the Company to enter into fresh user agreements in place of the five principal user agreements (as amended from time to time) together with a draft of the proposed user agreement; and

(b) seeking termination of the existing principal user agreements, with effect from various dates ranging between 4 July 2018 and 2 October 2018.

Accordingly, the Company has been in discussions with KPL to finalize the terms of the revised user agreements. However, as on date, the Company and KPL have been unable to reach an understanding regarding the continuation of the license of the Trademark.

In light of these developments, the Company is considering taking appropriate actions to secure its interests.

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First Published: Jul 05 2018 | 11:25 AM IST

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