The parties have agreed not to disclose the financial details of their trademark agreement. PPF plans to use the funds raised from the transfer of the Škoda brand rights mainly to reduce Škoda Group’s debt and continue growing its business. This will include the development of innovative products and the creation of new jobs.
“We remain proud ambassadors of the legacy left by Emil Škoda, who paved the way for the industry to flourish in Plzeň and across the Czech Republic. However, the time has come to acknowledge reality and resolve long-standing disputes over the scope of rights which have resulted from completely different products being marketed under the same brand. I am confident that the final agreement we have reached will help Plzeň-based Škoda forge a future in pursuit of its vision as a company that delivers comprehensive solutions for modern mobility in addition to a range of public transport vehicles,” says Stanislav Kuba, investment manager at PPF Group’s industry division and chairman of Škoda Transportation’s supervisory board.
Volkswagen Group, the parent of Škoda Auto, owns the Škoda brand and logo for cars, but most of the historical rights have remained with Škoda Plzeň and its subsequent owners, including Škoda Group and Škoda Transportation. Škoda registered the winged-arrow logo as a trademark in December 1923 before adding the “Škoda” wording in 1937. The Mladá Boleslav carmaker has used the Škoda brand since 1925. A survey conducted by Ipsos last year for Škoda Group revealed that the public usually associates the Škoda brand with car production (93%) and that only a quarter of the Czech population is familiar with Škoda Transportation in Plzeň.