Madras HC lets TAFE use Massey Ferguson brand during case pendency

Tractors and Farm Equipment Ltd (TAFE) said the Madras High Court on Wednesday issued a status quo in the ongoing Massey Ferguson brand dispute that allows the company to exclusively use the Massey Ferguson brand in India until the legal proceedings with US-based Massey Ferguson Corp over the ownership and use of the brand in India is completed.

“Judge of the Madras High Court today, in the ongoing Massey Ferguson brand suit ordered a status quo on the usage of the Massey Ferguson brand in India, in favour of TAFE ensuring thereby uninterrupted exclusive use of the Massey Ferguson brand in India until disposal of the suit,” TAFE said in a statement.

The dispute between the Chennai-based tractor maker and Massey Ferguson Corp, which is the subsidiary of global farm equipment maker AGCO, esclated last year when the US-based company terminated the long-standing commercial partnership with the Indian company.

TAFE has been selling the Massey Ferguson brand tractors in India, Nepal and Bhutan since 1960s following an agreement with Massey Ferguson Corp to manufacture and sell Massey Ferguson tractors locally in India.

However, Massey Ferguson Corp alleged a breach of various agreements by TAFE and terminated the partnership agreement, prohibiting the Indian company from using the Massey Ferguson trademark. Incidentally, TAFE owns 16.2% stake in AGCO.

TAFE then filed a civil suit before the Madras High Court against AGCO’s subsidiary Massey Ferguson Corp, claiming that the said trademarks are distinctive of TAFE in India, are exclusively owned by TAFE and seeking a declaration that TAFE owns the Massey Ferguson brand/trademarks in India.

“The honourable judge passed orders on TAFE’s applications after a detailed hearing, observing that TAFE had made out a ‘prima facie’ case and that the ‘balance of convenience’ is in favour of TAFE,” the company said. 

Recently, Massey Ferguson’s senior manager of global marketing and brand lead in India told Autocar Professional that the agreement with TAFE was terminated due to concerns about TAFE's operational performance as a supplier, licensee, and distributor, citing issues like poor customer focus, problematic new product launches, late deliveries, and pricing challenges. 

“While we respect this ruling, it is a temporary measure and not based on the evidence that AGCO is yet to submit. AGCO will continue to defend its 177-year-old Massey Ferguson brand worldwide, including in India,” AGCO said in a statement responding to Wednesday’s status quo order.

“We are in the process of considering the terms of the Order and will take the appropriate legal measures to dispute the Order including by way of appeal. As proud owners, we are committed to preserving the Massey Ferguson legacy and safeguarding intellectual property.” 

TAFE sold 103,182 tractors in India during the calendar year 2024, as per the data from the Federation of Automobile Dealers Association (FADA). Mahindra & Mahindra and International Tractors Ltd, which sells Sonalika Tractors, topped the retail market share last year, followed by TAFE with a share of 11.5%.

TAFE also owns the Eicher tractor brand, which it bought from Eicher Motors in 2005 through its wholly owned subsidiary TAFE Motors and Tractors Ltd (TMTL).

READ MORE: ‘AGCO is committed to India's agriculture growth with or without TAFE’