Tafe gets Madras HC relief in war with AGCO over Ferguson brand ownership

According to a Tafe statement, this order will ensure uninterrupted exclusive use of the Massey Ferguson brand in India by the Chennai-based major until the disposal of the suit

In a major development in the ongoing brand war between tractor giants Tractors and Farm Equipment Ltd (Tafe) and the US major AGCO over the ownership of the Massey Ferguson brand in India, the Madras High Court on Wednesday ordered a status quo in favour of Tafe.

 

AGCO later said that it will take appropriate legal measures to dispute the order, including by way of appeal.

 

According to a Tafe statement, this order will ensure uninterrupted exclusive use of the Massey Ferguson brand in India by the Chennai-based company until the disposal of the suit.

 

"The Honourable Judge passed orders on Tafe’s applications after a detailed hearing, observing that Tafe had made out a ‘prima facie’ case and that the ‘balance of convenience’ is in favour of Tafe. Tafe has been using the brand uninterruptedly since 1960 in India," the statement said.

   

AGCO, in its response, said:

 

"We are in the process of considering the terms of the order and will take appropriate legal measures to dispute it, including by way of appeal. As proud owners, we are committed to preserving the Massey Ferguson legacy and safeguarding intellectual property."

 

AGCO also emphasised that:

 

"Protecting trademarks and copyrights is essential for fostering innovation, attracting investment into India, and setting industry standards globally. India’s agricultural future is key to AGCO’s mission, and we are dedicated to providing farmers with straightforward, dependable, and high-quality equipment to drive their productivity. In line with our Farmer-First strategy, Massey Ferguson will always prioritise Indian farmers."

 

AGCO further questioned Tafe’s position, stating:

 

"We maintain that Tafe's conflicting claims—asserting both licensee and ownership rights over the Massey Ferguson trademarks—are mutually contradictory, as they cannot hold both positions simultaneously.

 

"For more than 50 years, Tafe has signed multiple agreements with AGCO and Massey Ferguson, recognising itself as a trademark licensee of the Massey Ferguson brand in India. It is important to note that AGCO has received multiple favourable rulings to date, successfully defending against Tafe's claims on jurisdiction, contempt of court, supply arrangements, and brand ownership, including at the Supreme Court level," AGCO stated.

 

Background to the Dispute 

In April 2024, AGCO terminated its agreements with Tafe, including the brand licence for Massey Ferguson, which triggered a legal battle.

 

On November 19, both Tafe and AGCO claimed that the Madras High Court had ruled in their favour, citing an order to maintain "status quo", leading to confusion regarding the actual ruling.

 

The Massey Ferguson brand has a long history in India, dating back to the 1960s, when Chennai-based Amalgamations Group decided to manufacture these tractors in India. Tafe was founded in 1960 as a joint venture between Massey Ferguson (part of the AGCO Group) and Amalgamations.

 

In 1974, the two companies entered into a trademark agreement, which was later expanded in 1994, granting Tafe the exclusive right to use the Massey Ferguson (MF) brand name for its tractor operations in India.

 

Interestingly, Tafe is the single largest shareholder in AGCO, which is the third-largest farm equipment manufacturer in the world, after Deere & Company and CNH Industrial. On the other hand, AGCO holds a 21 per cent stake in Tafe.

 

Impact of the Dispute 

The public spat escalated further after Tafe filed a contempt petition against AGCO, following the US company’s termination of its agreements with Tafe.

 

The Massey Ferguson brand is crucial for Tafe, as out of its total annual production of over 180,000 tractors, over 100,000 bear the Massey Ferguson name.

 

Since its inception in 1960, Tafe has produced, built, and nurtured the Massey Ferguson brand in India, with over 3 million customers to date.

 

According to Tafe, its products are India-centric in design, distinctly different from AGCO’s products, and ideally suited for small and medium farmers in India and across the world.

 

Tafe further pointed out that:

 

"AGCO’s global brand website has made no mention of the Massey Ferguson brand in the context of India, Nepal, and Bhutan for six decades, having ceded the entire territory to Tafe since the takeover of Massey Ferguson India in 1960."