Financial Daily from THE HINDU group of publications
Friday, Sep 06, 2002
Financial Daily from THE HINDU group of publications Friday, Sep 06, 2002 |
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Corporate
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Regulatory Bodies & Rulings Marketing - Brands Technical fee for Libero, Enticer — FIPB grants permission to Yamaha to pay parent Neha Kaushik
NEW DELHI, Sept. 5 THE Foreign Investment Promotion Board (FIPB) has recommended grant of permission to Yamaha India to use four new trademarks - owned by Yamaha Motor Company (Japan) - for its four-stroke motorcycles in the Indian market. This includes Yamaha `Libero', a 110cc bike expected to be launched later this year, and a bike under the name of `Turning Forks'. Alongside, the FIPB has also given the go-ahead to Yamaha India to make payment to its Japanese parent for the right to use technical know-how, intellectual property rights and trademarks owned and controlled by Yamaha Japan, for manufacturing the Libero and the 125cc `Enticer' which has already been introduced earlier this year. According to official sources, an initial fee amounting to Japanese Yen (JY) 190 million, subject to Indian income-tax, is to be paid according to the following schedule. The first instalment of JY 70,000,000 is to be paid within 30 days from the commencement of commercial production of the Libero. The second instalment of JY 60,000,000 is to be paid on or before six months from the due date of the first instalment. And the third and final instalment of JY 60,000,000 is to be paid within one year of payment of the first instalment. This apart, a running royalty is to be paid on the sales of motorcycles at the rate of $17 per unit sold for the first two years after the commencement of commercial production of the respective model and at the rate of $20 per unit sold for the remainder of the term of the agreement which is valid for 10 years from the date of approval given by the Indian Government. In addition, Yamaha India will pay Yamaha Japan an additional royalty on motorcycles at the rate of $10 per unit exported to Nepal and Bhutan during the term of the agreement. The company has stated that the technical know-how fee proposed to be paid is well within the prescribed limit.
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