Big blow for Avida manufacturer
Australian manufacturer faces huge payout to American Winnebago company after latest court rulingA Federal Court ruling could see the former Australian manufacturer of Winnebago motorhomes pay out millions of dollars in damages to the US-based Winnebago Industries Inc.
A decision this week by Justice David Yates found that Knott Investments and nine dealers must pay the American manufacturer one per cent royalties on sales of Winnebago vehicles in Australia over a 10 year period from 2004.
Justice Yates said the parties had until December 16 to deliver agreed orders.
The Federal Court decision is the latest chapter in a five-year legal tussle between Iowa-based Winnebago Industries, which has been manufacturing motorhomes in the US since 1966, and Knott Investments which produced a range of Winnebago-branded motorhomes in Australia from 1978 to 2013.
In 2012 the iconic American company won a court case against the local manufacturer and dealers using their brand name, after which the Australian company changed its name to Avida.
In a further twist, a new range of Winnebago-branded RVs were introduced to Australia in mid-2014, after Queensland-based Apollo Motorhome Holidays struck a licensing deal with the American company.
According to a report in The Australian, a lawyer following the case said the latest ruling could financially ruin the Australian company, which employs about 200 people and builds an estimated 600 motorhomes and caravans a year at its Emu Plains, NSW factory.
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