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The following statement was issued on July 16 by the Minister of Finance and the Public Service, the Hon Audley Shaw:
“In response to an editorial in the Gleaner of Thursday (July 15), in which there was a call for clarification regarding the use of Air Jamaica trademarks by Caribbean Airlines, I take the opportunity to outline the agreement with respect to the use of trademarks, including the Air Jamaica name, which is governed by the Form of License Agreement, in the Contribution and Share Issuance Agreement.
“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. It is important to note, however, that the trademarks which Caribbean Airlines may use are restricted to those listed in the License Agreement. Although those which Caribbean Airlines may access do comprise the main Air Jamaica trademarks, not all are included. For example, Air Jamaica’s Seventh Heaven trademark is not a part of the agreement.
“The Licence gives Caribbean Airlines exclusive right to use the marks as stipulated. Nonetheless, the Government of Jamaica, as the licensor, retains the right to continue using the name in any of the ways in which it was being used prior to May 1, 2010 and, subject to Caribbean Airlines’ agreement, may also use the name in any other way which does not compete with the activities of the licensee.
“The Agreement can be terminated, if Caribbean Airlines does not use the trademarks for six months. Additional conditions under which Caribbean Airlines’ right to use the Air Jamaica trademarks is also automatically terminated are:1. Caribbean Airlines becomes bankrupt2. The airline assigns or attempts to assign the rights to some other entity3. The Government of Trinidad & Tobago fails to own at least 50.1% of Caribbean Airlines4. Caribbean Airlines fails to continue to run the Jamaican operations to the Minimum Service Level outlined in the Shareholder Agreement.5. Caribbean Airlines breaches any of the covenants and fails to correct the breach within 30 days.
“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.”