The RPG-controlled Gramophone Com-pany of India Ltd (GCIL) and British major, EMI Interna-tional have struck a deal under which the dog-and-gramophone logo will be retained by the Indian company for an unspecified duration.
Top sources close to the deal said the settlement resolved a major dispute between the two partners, and paved the way for EMI to set up its 100 per cent subsidiary in India.
The two partners have been sparring with each other for quite some time. The issue was EMI's proposal to hike its stake in GCIL from 10 per cent. RPG refused to allow this, and later lobbied with the government to reject EMI's application for a 100 per cent subsidiary.
GCIL will continue to use the EMI-owned HMV trademark even after it has ceased to be the sole licensee of EMI music in the country. EMI will also retain its 10 per cent stake in GCIL.
The recent developments end speculation about what would happen to the HMV brand name when the deal between the two was called off. RPG holds 50 per cent of GCIL, financial institutions hold 25 per cent, 15 is held by the public and the remaining 10 per cent is with EMI.
Pradipto Mohapatra, RPG sector head (retail), said, "GCIL will continue to be the registered user in the country of the dog and gramophone logo owned by EMI International."
He refused to disclose the period for which GCIL would enjoy this right.
Industry observers believe that EMI has nothing to lose by allowing the continuing use of the HMV trademark by GCIL as it is not being used in the marketing of audio products by EMI, and is only identified in the UK with stores owned by it.
They also feel that HMV, in all likelihood, will be licensed to GCIL for perpetuity.
Sources in the music industry believe EMI has nothing to gain or lose by touching its 10 per cent stake, and is just looking at it as an investment for now. "We (EMI and HMV) even now are interested in associating with one another," says Mohapatra.
