Hindustan Unilever alters trademark pact with Unilever

Hindustan Unilever announced that its Board of Directors approved amendments to the existing Technical Collaboration Agreement (TCA) with Unilever Plc to include: (i) additional product categories where technical inputs are provided by Unilever and (ii) products of specified categories manufactured by third party manufacturers where technical inputs developed by Unilever are made available to the third party manufacturer. In addition, the company's Board approved a trademark license agreement with Unilever which provides for payment of trademark royalty at the rate of 1% of net sales on specific brands, where Unilever owns the trade mark and HUL is the licensed user. The above amendments are within the Government of India guidelines for payment of royalty. The revised TCA and the trademark license agreement will come into effect from January 1, and will enable the company to continue to leverage Unilever's capabilities to further build and grow the business in India.