TVS recast: Family groups execute brand agreement

TVS Group has executed a brand agreement among the various members of the TVS family to use the word marks, including trademarks and related composite marks as either a prefix or suffix. This will allow various members of the family to become independent as part of memorandum of family arrangement (MFA).

By:March 25, 2021 8:24 AM
TVS Group logo

As part of its ongoing restructuring exercise, the $8.5-billion Chennai-based TVS Group has executed a brand agreement among the various members of the TVS family in respect of the use, adoption and registration of the word marks, including trademarks and related composite marks. These include TVS and Sundaram trademarks and several other trademarks which contain additional element other than the word mark, including as either a prefix or suffix.
Entities controlled by various members of the TVS family are in the process of executing similar deeds of adherence to become parties to the brand agreement. The word marks have been used by the family groups in relation to certain businesses owned, operated or controlled by each family group.
TVS Group has embarked on a restructuring exercise whereby each family group would get complete ownership of the companies they manage and the holding company structure would be abolished.
A memorandum of family arrangement (MFA) of December 10, 2020, was executed among various members of the TVS family who are shareholders of TV Sundram Iyengar & Sons Pvt Ltd (TVSS), Sundaram Industries Pvt Ltd (SIPL) and Southern Roadways Pvt Ltd (SRW) — collectively referred to as the TVS holding companies.
The senior nominated members TVS family, in a bid to implement the memorandum of family arrangement (MFA), had filed a composite scheme of amalgamation and arrangement with the National Company Law Tribunal, (NCLT) Chennai bench.
“Pursuant to the MFA of December 10, 2020, and further to the meeting held on January 27, 2021, of the senior nominated members of the TVS family, and in order to preserve harmony and peace among the various family groups, the members of the TVS family entered into the brand agreement, to record their understanding in respect of the use, adoption, registration of the word marks by the members of the family, on the terms and conditions as detailed in the brand agreement,”  TVS Motor Company said in a regulatory filing.
Under the new structure, though each branch of the family would become independent and manage the businesses they are running, the terms of the family arrangement do not envisage any royalty or brand usage payments from the operating businesses/companies to the TVS family members/their holding companies.

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