The term “naked licensing” in the context of trademark laws refer to the practice of granting a licensee the right to use a trademark without demonstrating any control or supervision of the trademark. In this instance, though TAFE has been using the Massey Ferguson brand for over six decades, AGCO had taken virtually no interest nor 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. (By Special Arrangement with www.shortpost.in)