TAFE, AGCO claim legal relief from Madras HC in tractor brand dispute

Court orders status, say two companies in long-running legal battle over ownership and use of Massey Ferguson

Chennai-based Tractors and Farm Equipment (TAFE) and AGCO said on Tuesday that a Madras High Court had favored them in their dispute about the Massey Ferguson tractor brand, citing an order to maintain “status quo”.

 

AGCO, of which Massey Ferguson is a US-based subsidiary, was the first one to came out with a statement saying that the High Court had overturned its interim injunction in favour of TAFE. Later in the day, TAFE said the High Court said that ownership and other related issues will be decided by the single judge of the court before whom applications in the dispute are pending.

 

 

"The present status quo is in continuation of the status quo granted to TAFE as early as in April 2024, and the latest of several judicial orders protecting TAFE’s rights to the use of the Massey Ferguson brand," the company said. According to its statement, the court said that TAFE is the registered proprietor and owner of the Massey Ferguson trademarks in India.

 

TAFE is the single largest shareholder in AGCO, the third largest farm equipment manufacturer in the world after Deere & Company and CNH Industrial. In September, AGCO announced terminating its agreements with TAFE, including the brand licence for Massey Ferguson.

 

AGCO made the announcement despite TAFE having legal relief in place following a similar notice by the American company in April 2024. TAFE then approached the High Court with a contempt petition against AGCO. In April, TAFE had argued that the termination was executed without notice.

 

The new court decision follows a series of favorable rulings for AGCO. TAFE’s claims on jurisdiction, contempt of court, supply arrangements and brand ownership have all been dismissed by courts, including at the Supreme Court, AGCO said.

 

AGCO “remains steadfast in its proud ownership” of the 177-year-old Massey Ferguson brand and trademarks globally and will continue to “vigorously defend” its position, it said in a statement. AGCO said it is committed to Indian farmers “who deserve straightforward, dependable and high-quality equipment to help them grow profitably”.

 

AGCO said its terminations in September followed “inappropriate and unauthorised actions taken by TAFE” that breached various agreements. Simultaneously, AGCO commenced legal proceedings against TAFE in India related to the use of the Massey Ferguson brand following delivery of these termination notices.

 

By early 2024, TAFE held Massey Ferguson brand rights in India, Nepal, Sri Lanka, Bangladesh and Bhutan. The brand is seen on more than 55 per cent of TAFE’s 180,000 tractors produced in a year, including exports. TAFE exports tractors to more than 80 countries.