GOLD COAST: The history behind Billabong International’s latest licensing spat has been revealed. Documents released by the Supreme Court of Queensland disclose the circumstances leading up to the long-running dispute between Billabong and its former Indonesian licensee, CV Bali Balance (CVBB).
In an ongoing civil claim in Denpasar District Court in Indonesia, CVBB has alleged that Billabong’s termination of its licence to distribute Billabong product in Indonesia was invalid.
Supreme Court of Queensland documents reveal the person at the centre of CVBB’s claims is Australian-born Suzi Ann Suwenda. A former designer, Suwenda once operated a stall at Sydney’s famed Paddington markets before marrying Indonesian surfing veteran I Wayan Suwenda in 1981.
CVBB came into being two years later, with Wayan its director and managing shareholder. Billabong first granted CVBB a licence to conduct its business in Indonesia in 1991, and that licence was renewed from time to time up to and including June 2004.
It was the surfing veteran’s death on October 6, 2005 – and the changes this triggered with reference to CVBB’s shareholder control – that prompted Billabong’s review of its agreement with CVBB.
On October 25, 2005, Billabong International CEO Derek O’Neill terminated the agreement with CVBB. At that time, the licence had approximately three years left until expiry.
Suzi Ann Suwenda signed a Deed of Acknowledgement in October 2005 on behalf of CVBB acknowledging the termination. A shareholder in CVBB at the time of her husband’s death, Suwenda has since challenged the validity of the termination.
In a statement released by Billabong in March this year, the company said in the wake of receiving legal advice it believes “there is absolutely no basis” for CVBB’s civil claim.
“In Billabong’s view, the civil claim is simply tactical litigation in Indonesia to attempt to influence the settlement discussions which are ongoing between Billabong and CVBB,” Billabong said.
The Supreme Court of Queensland determined on June 7 this year that Billabong validly terminated the licensing agreement with CVBB in 2005. Billabong plans to use the Supreme Court findings as part of its defence in ongoing legal actions in Indonesia.
Erin O’Loughlin.