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Foster’s brand case: the key issues

May 29, 2008

TP Week correspondent KPMG explains the thinking behind the recent Foster’s case in before the Authority for Advance Rulings in India

Foster’s Australia limited brews, processes, packages, markets, promotes and sells of beer products in Australia and abroad. The applicant used continuously the Foster’s brand since its registration. It had registered the Foster's trademark and "F" logo in India in July 1993. The company entered into a brand and licence agreement (BL agreement) with Foster's India Limited in October 1997. This agreement granted a brewing licence to Foster's India and an exclusive right to use the trademarks of CUB Beer in India. Foster's India used these rights for a consideration and was paying tax in India, treating the same as royalty income.

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