How TAFE Won The Massey Ferguson Brand From The U.S. Giant

Tractors and Farm Equipment Ltd (TAFE) of the Amalgamations group appears to have used `the naked licensing’ argument to press its claim for the iconic Massey Ferguson brand when it was engaged in legal battle with its over 65-year-old partner AGCO Corporation of the U.S. Of course, both have settled their dispute out of court and TAFE has been confirmed the owner of Massey Ferguson in India and two other countries. The term “naked licensing” in the context of trade mark laws refers to the practice of granting a licensee the right to use a trademark without demonstrating any control or supervision of the trade mark. In this instance, though TAFE has been using the Massey Ferguson brand for over six decades, AGCO had taken virtually no interest or contributed to its development in India. Apparently, this has proved a significant legal roadblock for AGCO to claim the ownership of Massey Ferguson brand in India. Also, TAFE has been strategic in its relationship with AGCO Corporation over the years. Its decision to invest in AGCO (it has over 16% shareholding in the U.S. company) has given TAFE the negotiating edge in effectively sealing its ownership for the Massey Ferguson brand in India. From hindsight, it could be argued that TAFE did well in consistently persuading AGCO Corporation to pare its holding in TAFE gradually from 49% a few years ago to less than 21%.  The strategy, assiduously initiated by TAFE over the years, appears to have emerged victorious in the end. If proof is required, the out-of-court settlement is there for all to see.