AGCO-TAFE case: Madras HC lifts injunction on Massey Ferguson brand dispute

The ongoing legal tussle between Chennai-based Tractors and Farm Equipment Limited (TAFE) and U.S.-based agri-machinery maker AGCO over the rights of TAFE to use AGCO’s ‘Massey Ferguson’ brand in India has taken a new turn.

On November 18, the Madras High Court overturned an interim injunction it had given in the trademark dispute between the two parties that allowed TAFE to continue to use ‘Massey Ferguson’ brand in its tractors manufactured for sale in the Indian market.

Both AGCO and TAFE claimed the latest decision to be in their favour. Incidentally, TAFE owns 16.2% stake in AGCO and is a significant shareholder in the U.S. company.

By overturning the interim injunction, the Madras HC has confirmed that AGCO is the registered proprietor and owner of the Massey Ferguson trademarks in India, AGCO said in a statement. The U.S. company also stated that the current court decision in favour of AGCO is the latest in a series of multiple favourable rulings for AGCO, where TAFE’s claims on jurisdiction, contempt of court, supply arrangements and brand ownership have all been dismissed by the Courts, including at the Supreme Court level.

TAFE, in a separate statement, said Madras HC has directed status quo to be maintained in favour of TAFE with regard to TAFE’s use of the “Massey Ferguson” brand in its latest order. “While doing so, the Court recognised TAFE’s use of the brand for more than six decades. The Court has directed that ownership and other related issues will be decided by the Single Judge of the Madras High Court before whom the Applications are pending," the company said.

While $14.4 billion  AGCO is a global leader in the design, manufacture and distribution of agricultural machinery and precision ag technology and owns brands such as Fendt, GSI, Massey Ferguson, PTx and Valtra, TAFE is the second-largest tractor manufacturer in India with annual sales of over 180,000 units and an annual turnover of over $1.6 billion.

TAFE has been selling Massey Ferguson brand tractors in India, Nepal and Bhutan ever since the take-over of Massey Ferguson India in 1960. The company claims its products to be India-centric in design, distinctly different from AGCO’s products and ideally suited for small and medium farmers of India and across the world. TAFE also claims that AGCO’s global brand website has historically for six decades made no mention of the Massey Ferguson brand in the context of India and its two neighbouring countries ever since TAFE’s take-over of  Massey Ferguson India.

AGCO maintains that the company owns the 177-year-old Massey Ferguson brand and trademarks globally, including India, and will continue to vigorously defend its position. AGCO had issued termination notices to TAFE for the Massey Ferguson brand license agreement in September 2024.