Mayadunne Corea J

The Respondent is a company that imports, manufactures, and distributes dairy products. As per the submissions made, the main shareholder is Fonterra Brands Singapore (Pvt) Limited. According to the written submissions of the Respondent the ultimate parent entity of the entire group is the Fonterra Co-Operative Group of New Zealand (herein referred to as “FCG”). The Respondent had entered into a licence agreement with another company, New Zealand Milk Brands Limited (herein referred to as “NZMB”). However, it is the contention of the Appellant that NZMB has instructed Fonterra Brands Lanka (Pvt) Ltd (herein referred to as “FBL”), the Respondent to remit royalties to FCG. This is also borne out by the letter of intimation found on page 51 of the brief. This contention was never challenged by the Respondent but in fact was admitted by the Respondent.

As per the licencing agreement which has come into effect from 01.06.2006, the Licensor has allowed the Licensee to use the “Technical Know How” of the Licensor for the manufacturing of products and also the “Communication Package” for the marketing of the dairy products which included the milk powder. It is pertinent to