Renault Samsung to Become 'Renault' in 2 Years... Brand Contract Ends in August
Samsung Trademark Usage Contract Ends on August 4
After 2-Year Grace Period Post-Expiration, 'Samsung' Must Be Removed
[Asia Economy Reporter Kim Ji-hee] Renault Samsung Motors' trademark contract with Samsung, which has lasted for 20 years, is set to expire this August. From August 2022, when the grace period ends after the contract termination, the company name must remove "Samsung."
According to Renault Samsung's audit report on the 19th, the trademark usage contract between Renault Samsung and Samsung Electronics and Samsung C&T will expire on August 4. If the trademark usage contract is not extended by then, a two-year grace period will begin, after which the Samsung trademark will be removed.
Renault Samsung was established in 2000 when the Renault Group acquired Samsung Motors. At that time, Renault Samsung, Samsung Electronics, and Samsung C&T signed a trademark usage contract dated August 5, 2000. While using the Samsung trademark, Renault Samsung has paid a certain percentage of product sales revenue in years when pre-tax operating profit was generated. This rate is known to be 0.8%.
Both parties have signed contracts in 10-year increments, and in June 2009, about a year before the first contract expiration in 2010, they agreed to extend it. The agreement included Samsung Card maintaining its 19.9% stake in Renault Samsung and keeping the Samsung name. However, with about four months remaining before the second expiration date this year, there has been no news of an extension so far.
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Accordingly, industry insiders are leaning toward the view that both parties will not renew the contract. Previously, rumors of a split with Samsung arose when Renault Samsung applied its own logo, the "Eye of the Typhoon," instead of Renault's diamond-shaped "Losange" emblem, on models such as the Twizy, Clio, and Master Van.
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