Business Weekly - Cambridge, UK

Perkins Goup, the Peterborough based global engine manufacturer, has emerged triumphant from a four-year legal battle to stop what it considered to be sub-standard engines being made under its brand in China.

The company formed a joint venture with Tianjin Engine Works - called Perkins Engines (Tianjin) Limited - exactly 10 years ago to build Perkins 1004 and 1006 (four and six litre) engines in China.

But it terminated the licence and trademark agreements with Perkins Engines (Tianjin) Limited in August 2003, served notice terminating the joint venture agreement and filed for dissolution of the joint venture.

The Tianjin authorities refused to allow the JV company to be dissolved and Perkins Group Limited was left no alternative but to retain a 10 per cent stake in the Chinese JV while it consulted lawyers.

Since 2003, Perkins Group has repeatedly asked that its brand, logos and other trademarks be removed from the facilities and products produced by Tianjin, which refused - triggering a fusilade of writs from the Peterborough company.

None of the products manufactured by Perkins Engines (Tianjin) Limited have been approved by Perkins Group, which was obliged to issue a worldwide warning to potential customers.

It reminded clients that it had no management, technical or other representation in or control of Tianjin and did not not recognise the legitimacy of the board.