Kenrich Petrochemicals, Bayonne, NJ, has filed a demand for arbitration against Ajinomoto Co., Tokyo, Japan, before the American Arbitration Association in New York. Kenrich invoked the terms of the Japan-American Trade Arbitration Agreement of 1952 in its demand for arbitration against the Japanese multinational. In 1980, Kenrich entered into a license agreement with Ajinomoto where Kenrich licensed its revolutionary titanate technology to Ajinomoto. Titanate technology is used in the polymer industry. The license agreement, which called for technological and marketing cooperation between the two companies, was meant to allow Kenrich to expand into the fast-growing Japanese and Pacific basin markets. The license agreement provides that Ajinomoto will pay a royalty based on a percentage of net sales value. If the aggregate royalties payable in any one year do not exceed a minimum royalty, then the minimum royalty is to be paid for that year. Since 1980, Ajinomoto has only paid the minimum royalty, alleging that the aggregate royalties payable under the license did not exceed this value. Ajinomoto's position that its sales never exceeded the minimum amount is said to be directly contradicted by overwhelming evidence in the marketplace.
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|Title Annotation:||files for arbitration of licensing agreement dispute with Ajinomoto Co.|
|Article Type:||Brief Article|
|Date:||Sep 1, 1995|
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