Malaysian company Power Root Berhad finds itself entangled in a legal conundrum after its subsidiaries were unexpectedly ordered to pay RM23 million in a trademark infringement case involving its “Ah Huat” brand in Indonesia.
The case stems from allegations that an Indonesian company registered the “Ah Huat” trademark without Power Root’s consent. Despite intending to appeal the decision, Power Root faces a setback as its subsidiaries were ordered to pay the substantial sum without being informed or given a chance to defend themselves.
The legal dispute originated in 2013 when an Indonesian party allegedly registered the trademark without Power Root’s knowledge or permission.
Last year, Power Root initiated legal proceedings to cancel the trademark’s registration, citing bad faith. However, the court dismissed the cancellation bid, citing technical reasons, prompting an appeal by Power Root.
In a separate move, the Indonesian company filed a claim for RM23 million in compensation, alleging trademark infringement by Power Root’s subsidiaries. Surprisingly, the Commercial Court ruled in favour of the Indonesian party, ordering Power Root’s subsidiaries to pay the substantial amount.
Power Root, however, contends that its subsidiaries were not properly notified and, as per Indonesian law, were not given a fair chance to present a defense.
Power Root remains determined to contest the claims and protect its trademarks. The company emphasizes its commitment to rigorous legal proceedings and vows to appeal against the unfavorable rulings.
Further developments in the case will be announced as they unfold. Power Root, a global beverage player with renowned brands such as Alicafé and Ah Huat, faces a challenging legal battle to safeguard its intellectual property rights.