Dutch company faces lawsuit from Sadolin Paints

SADOLIN PAINTS East Africa Ltd has sued a Dutch company for prematurely ending a deal that allows it to use the household name in manufacturing its paints. PHOTO| FILE| NATION MEDIA GROUP

What you need to know:

  • Sadolin Paints East Africa Ltd has sued a Dutch company for prematurely ending a trademark deal.

  • Akzo Nobel Coatings International BV, which owns the trademark, had a deal allowing the local company to use its trademark to manufacture and sell paints in exchange for royalties.

Sadolin Paints East Africa Ltd has sued a Dutch company for prematurely ending a deal that allows it to use the household name in manufacturing its paints.

Sadolin and Akzo Nobel Coatings International BV, which owns the trademark, had a deal allowing the local company to use its trademark to manufacture and sell paints in exchange for royalties. The contract was to expire in December 31, 2019.

However, in February this year, Akzo gave Sadolin a year’s notice that the licence agreement would expire on February 1, 2018.

The Dutch firm now intends to set up shop in Kenya and has incorporated a Kenyan subsidiary to take over the manufacture and sale of Sadolin paints in the region.

Under the deal, the new Sadolin Paints East Africa Ltd is to manufacture and sell paint with the trade name in Kenya, Uganda, Rwanda, Tanzania, Zanzibar, Burundi, South Sudan, Ethiopia, Democratic Republic of Congo (excluding Kinshasa and Lubumbashi), Somalia and Djibouti.