Chevron sues Ampol over Caltex brand
Oil heavyweight Chevron is taking Ampol to court alleging breaches of trade mark licence agreements relating to the Caltex brand.
Global oil heavyweight Chevron is taking Ampol to court, alleging breaches of the trademark licence agreement between the two relating to the use of the Caltex brand.
The proceedings allege breaches and infringements have occurred due to the use of non-compliant signage at 177 Ampol sites, together with an unspecified number of third-party sites operating under sub-licence from Ampol.
The court action comes after Chevron issued a termination notice, requiring Ampol to rebrand from Caltex by December 31, 2022.
Caltex was using the brand name under licence from Chevron but the US giant terminated the deal in December after re-entering the Australian fuel retail sector.
“The proceedings do not affect the work out period or Ampol’s transition to the ‘Ampol’ brand during this time frame,” the Ampol board said in a statement on Tuesday.
“With the rollout of our two pilot sites in August and further sites planned for the remainder of 2020, Ampol’s transition plans are on target.”
Ampol said it had been in discussion with Chevron “for some time in an effort to resolve Chevron’s complaints.
“Ampol does not consider these matters to be a significant part of either party’s business in the context of its transition plans.”
Chevron made a surprise return to the convenience fuels sector in December after paying $425m to scoop up Puma Energy — Australia’s largest independent fuel retailer — just four years after selling its stake in Caltex.
The US major sold its 50 per cent stake in Caltex in 2015 for a whopping $4.7bn but Chevron‘s purchase of Puma gave it a new market supplying products from its stakes in three major Asian refineries in Singapore, Thailand and a giant facility in South Korea.
Chevron confirmed in August it would take back the Caltex name as it looks to rebrand its Puma service stations.
“We are taking this legal action to protect the Caltex brand and avoid confusion that is caused by its misuse,” a Chevron spokesman said on Tuesday. “We are proud of the Caltex brand. Consumers must be able to rely on it for the value they know it represents. We will bring back the iconic Caltex Brand in Australia once we are contractually able.”
Federal Court documents allege Caltex used inappropriate signage at several service stations where The Foodary was the main image seen upon entry.
Chevron also said the background of the Caltex star had red as its primary background colour rather than green as spelt out under a set of brand standards between the two companies, according to the court documents.
The sign “must comprise the colour deep ocean green as its primary background colour and the canopy of the service station must comprise the colour red or alternatively the colour red with a silver stripe.”
The first Ampol sites have started to appear in Sydney and Melbourne ahead of a national rollout in 2021 and use of the Caltex name officially shelved by the end of 2022.
Caltex started trading under its new name, Ampol, in May after shareholders approved the brand switch at its annual general meeting.
Ampol shares closed down 1.5 per cent on Tuesday, at $25.62.
