Coca-Cola may resist Global Maaza

MUMBAI/DELHI: The Coca-Cola Company (TCCC) is understood to have reconsidered its plans to sell the beverage brand, Maaza abroad to avoid brand disputes and legal wrangles with Bisleri International, sources said. While TCCC is withdrawing registration of the trademark in some Benelux countries, it has also withdrawn an application made in Turkey. However, TCCC has adopted a tough stand over the issue of compensation demanded by Mr Ramesh Chauhan for allegedly breaching an IPR agreement, sources said. Mr Chauhan is also in talks with lawyers to explore plans to legally challenge the move in the US if TCCC opts to go ahead with its plans.

Ramesh Chauhan is currently in dispute with TCCC over alleged breach of agreements dating back to 1993 and 1994, which were signed between The Coca-Cola Company (TCCC) and Aqua Minerals, now Bisleri. Mr Chauhan has sought damages of $50 million from Coke for allegedly infringing the agreement. Coca-Cola officials maintain that that there was no definitive non-compete agreement signed which left it open for TCCC to explore business opportunities for the brand. When contacted, Ramesh Chauhan, chairman of Bisleri International said, ��� There is no reason why we should not be able to sort out the issue without having to go to court as we have similarly solved other issues in the past���. Currently, Mr Chauhan has sold the distribution for Maaza in some global markets to distributors and was planning to do the same in markets where TCC had also applied for registration.

A Coca-Cola India spokesperson said, ��� Nothing restrains TCCC from registering the Maaza trademark in a particular jurisdiction outside India, if the law of that jurisdiction so permits. TCCC US, which owns the Maaza trademark and IP rights, will respond to the allegations appropriately���.

The Bisleri group (Parle Exports)-promoted soft drinks company, Maaza Beverages had sold the trademark rights of Maaza last year for the international markets to its bottlers, Infra Beverages in Europe and House of Spice in the US. Coca-Cola, which owns the trademark in India, is believed to have then expressed interest to buy the rights for the international markets.

Although Mr Chauhan had sent a legal notice to TCCC, its affiliates and franchisees to stop the production of Maaza within a month, sources said the notice cannot legally challenge Coke���s Maaza operations in India. Within India, the brand belongs to TCCC. Mr Chauhan had accused Coca-Cola infringing IPR agreements dating back to 1993 and 1994 which were signed between The Coca-Cola Company (TCCC) and Aqua Minerals. Mr Chauhan claimed the trademark, Maaza, was sold to TCCC only within India and that the licensee (Bisleri) was the registered proprietor of the trademark outside India.
Coca-Cola has officially maintained that that ���there was no non-compete agreement entered into by the Chauhan Entities to restrain the company in relation to any country where the Maaza trademark was not registered by a Chauhan Entity���.

���In countries (other than India) where Maaza is registered by a Chauhan entity but not used by that Entity in accordance with the statutory requirements of that country, TCCC can apply for rectification of the market in accordance with the law of that particular country,��� it had earlier said in a communication to Mr Chauhan.