Hi Kanyapan,
Regarding the attached outstanding invoice, we have seek our internal legal advice and here is our legal position:
Basically, I can understand why BOL have said what they have to Hazel. Whilst the same situation would not occur today (the TMLA signed in October 2015 would not have to be extended, because it exists and runs alongside the CSA and is co-terminus with the CSA, ie. if we extend the CSA the TMLA is impliedly extended for the same duration), BOL are correct in saying that the old TMLA, because of the way it was worded, should probably have been extended at the same time as the CSA.
That said, I don’t think we have to retrospectively extend the old TMLA. I don’t feel there is any need to formally extend a historical agreement (that would have terminated in January 2015, I imagine) which was replaced in October 2015 by a new TMLA in any event (ie. we’d be extending an agreement, for a period of time that occurred in the past, and that agreement no longer exists).
The old TMLA states that it can be renewed beyond the termination date by mutual consent. As you will be aware, after the TMLA “effectively” terminated in January 2015, we didn’t stop BOL/Thailand from using the D&B brand. In other words, the rights granted by the TMLA continued even though it had “effectively” terminated. I use the word “effectively” here, because DBI and Thailand, and indeed business, continued as normal and is if the TMLA was in existence (otherwise Thailand would not have been permitted to use our brand, from January 2015 until October 2015 when the new TMLA was signed). As such the TMLA was clearly, and impliedly by the course of conduct of both parties, renewed by mutual consent until replaced by the new TMLA on renewal. As such, there is no need to retrospectively renew the old agreement.
Appreciate if BOL can settle the outstanding invoice soon.
If you have any question, please contact Ricky Sidhu from legal & Piers Woolston.
Thanks.
Regards
Hazel