Dela Cruz, Kathreena Louise C.
Edding, Moniva B.
Enriquez, Kaye Anne DA.
Nooh, BrenMarr
Summary
The case on Luna Pen revolves around the dispute between two large manufacturing companies; the DGG, where Erika Graeper is employed, and the Global Service, having Alven Feng as the owner. The understanding about how the disagreement and miscommunication between the two companies had happened, all pins down to the history of DGG. Luna was a staionary company owned by the Durant family which had operated for 60 years. It was then acquired by a larger company, DGG.
Problem Statement
IV. Decision Alternative
A. Assert DGG’s rights. Write a letter to Mr. Feng to inform him that his company GSC is unauthorized to use the Luna name. Tell Mr. Feng that DGG is prepared to file lawsuits to cover the damages for past trademark violations, if necessary. Thus, making them liable for back payments for past misuse of Luna Name.
B. Negotiate with Mr. Feng. Have an on going licensing arrangement through forming a partnership with GSC. Inform Mr. Feng of your discovery that Luna is selling well in Southeast Asia, under his marketing strategy.
C. Sell the goodwill of Luna to some enterprise interested in buying specifically in the Southeast Asia also inform Mr. Feng about it.
Pros & Cons
The suit is of high risk because of the abandonment of Luna pen industry. Filing a law suit is also time consuming and expensive. It may also cause to ruin the image of DGG in Asia. It will require them to spend for the expenses such as compensation for the advocates in each country where GSC sells luna pens. But it will gain them royalty on the Luna name.