KTM Fahrrad GmbH clarifies “no cooperation” with Pexco, warns legal action

KTM’s bike division has moved to clarify that it is not working in collaboration with Pexco GmbH, a zero emissions lightweight vehicles producer headed up by Susanne Puello.

The has been some confusion within the industry relating to separate KTM businesses. “KTM Bike Industries is not identical with KTM Industries AG,” stressed the former.

In a statement the bicycle business said:

“We, the KTM Fahrrad GmbH, have a common license agreement with KTM AG (Motorcycle-Group) dating back to the year 1997. In this license agreement only we (KTM Fahrrad) were given the worldwide and exclusive right to use the brand and the keyword “KTM” in the bicycle-sector.

“KTM Industries AG (established 2016) is a company which belongs to the KTM-Motorcycle-Group. This company – including all the other companies of the motorcycle group – is not allowed to use the name “KTM” for the bicycle industry. This is prohibited by contract and forbidden on legal grounds. 

“This is why we have initiated legal measures in Germany as well as in Austria, to temporarily secure our rights towards the KTM Industries AG (Motorcycle Group). This has already been confirmed in an accelerated proceeding (not legally binding) in Germany.

“As far as can be seen Pexco GmbH, consequently only partially deleted possible references on their website relating to a collaboration with KTM Industries AG. Pexco GmbH, as well, is not entitled to use the keyword KTM for any application in the bicycle sector. We are currently urging for a fast and fair solution in this case, if necessary also by taking legal action against Pexco GmbH.

“In a letter, dated from October 19th, 2017, KTM AG (Motorcycle-Group) already confirmed that they did not give any right to Pexco to use neither the brand, nor the keyword, “KTM” in the bicycle sector. Therefore the usage of “KTM” by Pexco is lacking any legal basis.”