Intellectual property changes grants Pandora all rights to design.
Pandora has announced it will pay fellow Danish charm bead brand Trollbeads DKK190 million (£21.9m) for all intellectual property rights to Pandora’s glass bead designs by Trollbead’s Lise Aagaard.
The announcement relating to Pandora subsidiary Pandora Production Co. Ltd was made this morning. Pandora has entered into an agreement with Trollbeads for a one-off payment due to be made in Q1 2013.
To date, Trollbeads has granted Pandora intellectual property (IP) rights to glass charm bead designs under the Pandora name in a long-term royalty agreement relating to the designs by Lise Aagaard.
Under the new agreement Pandora will buy all IP rights to glass designs from Trollbeads‘ founder Aagaard used by Pandora at present.
The total amount will be capitalised on the balance sheet and amortised until the end of 2030. Pandora stated that the yearly amortisation of the one-off payment will not exceed the yearly payments under the former royalty agreement.
Pandora said: "The effect on Pandora’s financial accounts should thus be positive going forward."