Kenrich Petrochemicals.Kenrich Petrochemicals, Bayonne, NJ, has filed a demand for arbitration arbitration
Process of resolving a dispute or a grievance outside a court system by presenting it for decision to an impartial third party. Both sides in the dispute usually must agree in advance to the choice of arbitrator and certify that they will abide by the against Ajinomoto Co., Tokyo, Japan, before the American Arbitration Association The American Arbitration Association (AAA) is a private enterprise in the business of arbitration, and one of several arbitration organizations that administers arbitration proceedings. The AAA also administers mediation and other forms of alternative dispute resolution. in New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . 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 ti·tan·ate
A salt or ester of titanic acid. 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 Net Sales
The amount a seller receives from the buyer after costs associated with the sale are deducted.
This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight 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.