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Britannia, Danone row over Tiger may end soon

February 08, 2008 09:21 IST
The intellectual property rights battle between Britannia Industries and French dairy and beverages giant, Groupe Danone, is heading for an early breakthrough.

Sources close to the development said that the matter is likely to come up for hearing in Singapore early next week. Britannia Industries dragged Danone to a Singapore court last year, seeking a speedy redressal of the Tiger brand issue.

Both parties have been locked in a dispute over the trademark of Britannia's mass-market biscuit brand, Tiger. Danone, which holds a 25.5 per cent indirect stake in Britannia through a holding company Associated Biscuits International Holdings (ABIH), has been accused by the management of Britannia Industries of registering the Tiger Trademark globally without the consent of Britannia.

The case which was filed by Britannia last year has reached the critical pre-trial stage at the Singapore Court, according to sources. If the parties reach a settlement at the pre-trial conference (PTC) stage, they would not need to go for a full trial.

Danone applied for registration of the Tiger trademark in over 70 countries. It had made an application to register the Tiger trademark in Singapore way back in November 1999 and received a certificate in July 2003, according to the Intellectual Property Office of Singapore.

Britannia Industries discovered that its trademark had been registered in nearly 35 countries by Danone, only a couple of years back, when the company began aggressively pursuing its international expansion. Britannia submitted its trademark application for Tiger in Singapore only in April 2007 and the same is still pending.

Danone is fighting the case through its wholly owned French subsidiary Generale Biscuits. Its trademark registration at Singapore, however, will expire by November 2009.

The Tiger trademark contains the animated image of the Tiger and the word Tiger and involves a series of two marks under the class 30 (which consists of trademark for products such as biscuits and cookies). An email questionnaire sent to Britannia was not answered.

The trademark case for Britannia Tiger is a key component of the ongoing tussle between the Indian textiles to airlines conglomerate, Wadia group and Danone. Both Danone and Wadia have an equal stake in ABIH, which in turn holds 51 per cent in Britannia.

The management of the two companies, say sources, are in discussions to hammer out the terms for Danone to sell its stake in ABIH to the Wadias.

Danone would have to exit the biscuits business in India and dissolve its partnership with the Wadias. This move will pave the way for its solo entry into marketing yoghurt and beverages in India.

An arbitration case between the two parties is also pending at the Bombay High Court. If the talks between the managements fail, arbitration could take place in London where ABIH is officially registered.

Danone recently formed a joint venture with Yakult Honsha of Japan and launched a probiotic drink called Yakult in the country.

BIG FIGHT

Both the parties have been locked in a dispute over the trademark of Britannia's mass-market biscuit brand, Tiger.

Danone applied for registration of the Tiger trademark in over 70 countries

Ruchita Saxena in Mumbai
Source: source image