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J. Clarke[_4_]

In article , says...

On 5/21/2017 1:48 PM, J. Clarke wrote:
In article , says...

On 5/21/2017 11:24 AM, J. Clarke wrote:

"Sears sold its Craftsman tool brand to Stanley Black & Decker earlier this
year in a deal valued at $900 million. The deal gives Sears the right to
sell Craftsman products made by its existing suppliers royalty-free for 15
years."

It is not uncommon to buy a competitor and shut them down.

Who do you think has the power to shut anything down? Stanley did not buy
Sears so they most assuredly cannot shut Sears down. Sears has the right
to use the name without royalties for the next 15 years, so Stanley can't
shut _that_ down. And the lawsuit shows that Sears (***NOT*** Stanley) now
does and expects to continue to buy tools from One World Technologies to be
sold under the Craftsman brand. One World Technologies is NOT owned by
Stanley, One World is the parent company of Ryobi, and is thus a direct
competitor to Stanley. So how is Stanley going to shut Craftsman down?

If Sears sold Craftsman to Stanley they must hve given them some
control. Depending on how much, Stanley can just shut down anything
sold under that name. Sears won't be around in 15 years. Maybe not
even another year as they spirol down.

I don't think you get it. "Craftsman" is a name, not a company. What
Stanley got was the right to use the name. Sears however did not give up
their own right to use the name. The deal was that Sears can use it for 15
years without paying Stanley anything for the privilege of using it and
after that they have to give Stanley a percentage of the take.

Stanley didn't get a factory, they didn't get workers, or foremen, or
stocks of materials, or contracts with suppliers. There's nothing for them
to "shut down". If Stanley wants to sell tools that are labelled
"Craftsman" they are going to have to start making them in their own
facilities, make their own agreements with suppliers, or buy them from
Sears which already has such agreements in place and has stocks of product
ready to ship.