Tractor giant Massey Ferguson Ltd, a subsidiary of American agricultural machinery manufacturer AGCO Corporation, on Monday issued termination notices to Indian tractor company Tractors and Farm Equipment Ltd (TAFE), effectively ending their 28-year partnership.
The notices allege a breach of various agreements and will prohibit TAFE from using the Massey Ferguson trademark.
As a result of these notices, TAFE is no longer an approved licensee, user, distributor, or seller of Massey Ferguson products in India, Nepal, Sri Lanka, Bangladesh, and Bhutan, with immediate effect.
“These terminations follow inappropriate and unauthorized actions taken by TAFE that the company believes breached the various agreements,” AGCO said in a press statement.
The company has also initiated legal proceedings in India regarding TAFE’s continued use of the Massey Ferguson brand. AGCO clarified that the latest termination is separate from notices issued in April, which pertained to the termination of certain commercial licences.
In April, Massey Ferguson terminated a trademark usage agreement with TAFE dating back to 1994. TAFE, a joint venture between Massey Ferguson Ltd and Chennai-based Amalgamations Pvt. Ltd, was formed in 1960.
Following the termination notices in April, TAFE sought relief in the Chennai commercial court. The court, in its 28 April order, granted TAFE temporary relief, allowing the company to continue using the Massey Ferguson trademark while the dispute is under review.
In its plea, TAFE argued that the termination was abrupt, executed without notice, and followed a 25 April AGCO board meeting. TAFE claimed that the termination was carried out in bad faith and could disrupt global commercial transactions.
TAFE also emphasized its substantial investment in marketing and developing the Massey Ferguson brand over the past six decades. The company expressed concern that any public statements from AGCO could cause industry-wide panic and harm Indian farmers who rely on TAFE’s Massey Ferguson-branded tractors.
TAFE had earlier stated that it was considering seeking damages, accusing AGCO of acting in bad faith and jeopardizing both companies’ commercial interests.
