Abstract

The case gives an overview of the issues concerning the ownership of the 'Orange' brand in India. It outlines the rise and the subsequent problems confronted by the rights holder of the 'Orange' brand, Hutchinson. In February 2000, Hutchison Max introduced its Orange brand in India. In May 2000, France Telecom purchased the worldwide rights for the brand from Vodafone. However, Hutchison, through an earlier agreement had retained the rights over the brand in India. Hutchison had to pay royalty to France Telecom. After taking over the brand, France Telecom wanted to own the brand in India and made an offer to pick up a significant stake in Hutchison's India operations. But this was turned down by Hutchison. Subsequently, France Telecom demanded that the Orange brand licensing agreements be reworked and a higher royalty be paid by Hutchison for use of the Orange brand. Hutchison officials rejected a higher royalty payout. In late 2000, Hutchison officials announced that they were no longer interested in Orange. This seemed to have put to rest the issues relating to the ownership of the Orange brand. Aimed at the MBA/PGDBA students as part of Business Strategy curriculum, the case helps them to understand complexities, which can affect business strategies with specific reference to the case of 'Orange' brand of cellular service in India. The case also shows how the legal environment can have a profound influence on the choice of strategy.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Brand Licensing.

Keywords

Orange, brand, India, Hutchinson, February 2000, Hutchison Max, May 2000, France Telecom, Vodafone, royalty, late 2000, Business Strategy, cellular service, legal environment