Jamaica Gleaner
Published: Wednesday | July 21, 2010
Home : Business
Jamaica leases Air Jamaica trademarks for US$5/year
Caribbean Airlines Limited (CAL) has rights to the Air Jamaica name for one year, but the licensing agreement struck with the Bruce Golding administration also gives the carrier option to renew the arrangement annually.

The cost to CAL: US$5, the finance ministry said last week.

The essential provisions of that agreement are that Caribbean Airlines has the right to use - for an initial 12-month period - those trademarks which are listed in attachments to the agreement. At the end of the initial 12-month period, the right to continue using them is automatically renewed every year at a royalty amount of US$5 per year" said Finance Minister Audley Shaw in a statement responding to a Gleaner editorial asking for clarity on the CAL-Air Jamaica deal.

"It is important to note, however, that the trademarks which Caribbean Airlines may use are restricted to those listed in the licence agreement."

Not all trademarks

The agreement covers the major trademarks, but not all, he said.

The agreement is nullified if Caribbean Airlines becomes bankrupt; assigns or attempts to assign the rights to some other entity; or the Government of Trinidad and Tobago's stake in CAL falls below 50.1 per cent.

The agreement may also be terminated if Caribbean Airlines does not use the trademarks for a six-month span.

"Importantly, too, the trademarks can only be used in connection with the airline's Jamaican operations relating to routes and frequency, fleet and crew - although Caribbean Airlines may make such changes or variations to the routes and frequency and/or to the fleet and crew stipulations as the airline believes are appropriate in order to achieve maximum profitability and the ultimate success of the Jamaican operations," Shaw said.

business@gleanerjm.com

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