Volvo hires law firms to go after imitators

Passengers being ripped off by unscrupulous operators

Brand infringement and piracy reminds one of apparels and electronic durable labels, and certainly not of automakers.

Heavy commercial vehicle maker Volvo is facing just that, thanks to the redifinition of travelling standards by its long distance buses. To counter it, the company has appointed two law firms to investigate the piracy.

There has been rampant misuse of the Volvo name by operators in recent times. Operators are increasingly beginning to market non-Volvo buses with the Volvo badge and bag the extra buck from long distance commuters.

The reason, passengers are willing to pay a premium of at least 30 per cent for travel on Volvo buses. There has been instances of existing Volvo fleet operators engaging in brand piracy. Such operators find it cost-effective to expand their Volvo fleet by fitting Volvo lookalike bus bodies on conventional HCV chassis.

The company is now surveying operators across the country and legally countering the offenders. Volvo says its survey could eventually throw up some definitive number and type of offenders. But it appears it is early days still.

Ulf Nordquist, managing director, Volvo India said, "We do not have a full estimate. But as an example we can mention that we know that in one single southern state the number is higher than 20." Volvo has managed to sell just about 300 buses across the country so far.

Preliminary finding show that infringements have happened across cities. The numbers are relatively high in Kerala, Goa, Hyderabad and Bangalore.

Volvo officials said, "This is possibly because we first commenced sales in these areas. We can expect infringement to take place in various other cities too and that is why we will not only focus on these specific markets but the country as a whole."

The company said, its brand violation in India has happened since inception. But the quantum was in tune with the other markets where Volvo operates. However, over the last year or so "" along with the growth of Volvo buses "" offences have been shooting past accepted levels.

Besides the legal option, the company is co-ordinating with its key customers in promoting brand awareness amongst passengers. The clarity in Indian law has also helped the company address these issues.

With the law clearly providing for the protection of registered and recognised trade marks, the company is sending out legal notices first, and is following it up by filing a case of infringement in the court for getting a cease and desist order.

This exercise will be crucial for the truckmaker. The high-powered HCV scene in the county, now a Volvo forte, is hotting up with DaimlerChrysler announcing a April-May foray into the segment.

Local biggie Tata Motors is expected to enter the high-end HCV segment following its acquisition of Daewoo's truck division and Ashok Leyland is said to be working on high-powered trucks.