NEW DELHI, India- As part of the recent out-of-court settlement between Piaggio and its Indian joint venture partner LML Ltd., the Singhania family will buy out Piaggio's entire 23.6% share in the venture. Piaggio will also transfer its 28% stake in the Vespa Car Company Ltd. (VCCL) to LML or its nominee. The buyout concludes both joint venture agreements and frees LML to source technology from other companies, while Piaggio can now operate on the Indian market independently.
LML will retain the non-exclusive rights to use all of Piaggio's technology except that for motorcycles. Piaggio will become free to set up any business in India (including a competing business), with the exception of manufacturing motorized two-wheelers powered equipped with a lateral engine. Likewise, LML will be free to export all vehicles except the four-stroke ET-4. These agreements hold until 31 December 2007.
Neither party will use the other's trademarks, logos or brand names. As such, LML will not be able to use name Vespa. (SH)