Fujifilm Holdings Corp. said Monday it will dissolve a contract with Xerox Corp. on sales cooperation and the right to use the U.S. office equipment-maker’s brand at the end of March 2021, opting to enter the U.S. and European markets with its own brand.
Fujifilm notified Xerox it will not renew the current five-year contract, under which the Japanese company’s unit Fuji Xerox Co. was allowed to engage in sales in the Asia-Pacific region while Xerox covered Europe and the United States.
With the decision, Fujifilm will also no longer need to pay about ¥10 billion ($92 million) in license fees annually charged by Xerox for using its brand for products to be sold in the Asia-Pacific region.
In line with the termination of the contract, Fuji Xerox will be renamed Fujifilm Business Innovation Corp. as of April 1, 2021. The company said it will continue to supply products to Xerox even after the contract ends.
Source: the japantimes