I think both sides have reasonable claims. My question is does an agreement on licensing of "Bega cheese" mean the "Bega" brand name cannot be used on Vegemite etc.If I was Bega my argument would be the products have nothing to do with cheese so should be able to use the Bega name. Fonterra is arguing that their agreement should exclude everything being able to use the Bega name. I would have thought that the new products that have been using the Bega name has only enhanced this iconic brand, so can't see Fonterra's complaint or that they have been disadvantaged by dilution of the brand. Without seeing how the original agreement was worded I would have no idea on how this one may end up.
Bega's counter claim that Fonterra breached the agreement by not promoting the Bega Cheese brand sufficiently probably has more legs and has some figures backing up the argument. Personally I would have to say that Mainland cheese has been much more visible in media that I have viewed so that also tells me Bega has reasonable claims.
It's a pity that this is going to court and couldn't be settled via mediation or a robust and honest discussion between the companies.
Looking forward when this is over for some clarity.
Christopher
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News: BGA Bega Cheese Sees Normalised EBITDA In Range Of $95 Mln - $105 Mln For Fy2020, page-62
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