Opinion ID: 777188
Heading Depth: 2
Heading Rank: 2

Heading: The DHL Trademark

Text: 6 In 1974, DHL and DHLI entered into a Memorandum of Oral Agreement (MOA), under which DHL licensed the name DHL to DHLI for five years, terminable by DHL on 90 days notice. Under the MOA, DHLI would be prohibited from using the DHL name for five years after termination. The MOA did not include any provision for the payment of royalties by DHLI to DHL for use of the DHL trademark. Through a series of amendments, the MOA was extended through 1990. 7 In 1977, DHL began the process of registering the DHL trademark in the United States. DHLI commissioned the first DHL logo, which was then used worldwide. Beginning in 1983, DHLI incurred the expenses of registering the DHL trademark under DHLI's name in various foreign countries. 8 On December 7, 1990, DHL and DHLI entered into a new agreement. Under its terms, DHL had the exclusive right to use and sublicense the DHL trademark in the United States, and DHLI had corresponding rights overseas. The agreement included reciprocal performance standards, and DHL and DHLI agreed to compensate each other, at cost plus 2%, for any shipment imbalances between the two entities. The agreement was terminable only for cause and had a 15-year term, with an automatic 10-year renewal if both parties were satisfied. If the agreement was terminated, DHLI would be prohibited from using the DHL trademark for 5 years. The agreement contained no provision for payment of royalties for DHLI's use of the trademark. 9