Fujifilm dissolving Xerox sales cooperation and brand license
Fujifilm Holdings Corp. said Monday it would dissolve a sales cooperation contract with Xerox Corp. and the right to use the U.S. brand of office equipment company, opting to enter the U.S. and European markets with its own brand.
Fujifilm told Xerox that the existing five-year deal serving until the end of March 2021 would not be extended. The agreement allowed the Fujifilm unit, Fuji Xerox Co. to sell in the Asia-Pacific region, while Xerox covered Europe and the United States.
Fujifilm also will no longer have to pay approximately 10 billion yen ($92 million) in annual licensing fees charged by Xerox for the use of its brand on products sold in the Asia Pacific region.
Fuji Xerox will be renamed Fujifilm Business Innovation Corp. on 1 April 2021 in line with the termination of the contract. The company said it would continue to supply Xerox with its products even after the contract has ended.
“Fuji Xerox is now well placed to conduct business in a dynamic and more global manner, with more freedom,” said Fuji Xerox Chairman Koichi Tamai in a prepared statement.
Fuji Xerox was a joint venture in November 2019 with the U.S. corporation for 57 years until Fujifilm became fully owned.
The decades-long relationship ended when Fujifilm abandoned its intention to combine with Xerox, revealed in 2018, in the face of strong opposition from the major shareholders of the US firm.