KUALA LUMPUR: Power Root Bhd will reclaim its "Ah Huat" trademark in Indonesia after it reached an out-of-court settlement with Indonesian distributor CV Ego Sun Star Sukses Mandiro (CV Ego) on the matter.
On Jan 13, 2023, Power Root's unit Power Root (M) Sdn Bhd (PRM) started legal action against CV Ego to cancel the registration of the "Ah Huat" trademark by CV Ego and Lim Kok Kiong, done in Feb 21, 2013, a day before it CV Ego was made Power Root's distributor for Indonesia.
This was on the premise that the "Ah Huat" trademark was registered in bad faith by LKK and CV Ego whilst CV Ego was Power Root Group's distributor for Indonesia and was done with full awareness that the "Ah Huat" brand is owned internationally by the Power Root group.
PRM used, filed and registered worldwide trademark for "Ah Huat" from April 25, 2012.
In a filing with Bursa Malaysia Securities Bhd yesterday, Power Root said as part of the amicable out-of-court settlement, CV Ego agreed to recognise Power Root's ownership of the "Ah Huat" trademark and to transfer its "Ah Huat" trademark registered with the Indonesian Director-General of Intellectual Property to PRM.
As part of a settlement agreement between CV Ego and PRM, PRM will pay CV Ego RM213,000 as full and final settlement of their dispute, and agree to set aside a verdict granted by the Central Jakarta Commercial Court in favour of CV Ego and any future appeal by PRM to the Supreme Court.
CV Ego will also discontinue the usage of the "Ah Huat" trademark.
As part of a trademark assignment agreement with CV Ego, PRM will pay CV Ego a sum of RM1.26 million for the transfer of the trademark registered in Indonesia.
At 12.20pm, Power Root's share price was up 1.66 per cent or three sen, to RM1.84 a share. This gives it a market capitalisation of RM850 million.