Mumbai, Jan. 13: UTI Asset Management Company (UTI AMC) has said all entities using the UTI name and logo will have to pay royalty after January 31.

UTI Bank changed its name to Axis Bank in May last year. This was prompted by demands for royalty from UTI AMC.

A UTI AMC statement said: “Other business entities which were promoted by Unit Trust of India also use the UTI name, and difficulties those businesses encounter may damage our brand and reputation and harm our business.

“Our registered trademark — including the name and logo — UTI, is an important asset of our business. Maintaining and enhancing the reputation associated with our trademark is integral to our success.

“The transfer agreement whereby we acquired the rights to our brand name and logo permits other business entities to use our name without paying any royalty until January 31, 2008,” the statement said.

UTI Trustee Company Pvt Ltd, which is the trustee of UTI Mutual Fund, and UTI AMC own the UTI brand and the logo.

Four other entities — UTI Securities, UTI Investment Advisory Services, UTI Infrastructure Services and UTI Technology Services — are also using the UTI brand.

According to an agreement worked out by the government in 2005, control of the asset management company was transferred to four promoters — the State Bank of India, the Life Insurance Corporation of India, the Bank of Baroda and Punjab National Bank. UTI Bank also had the right to use the UTI brand until January 31 but decided to become Axis Bank in May last year.

Axis Bank had then said it would spend around Rs 50 crore on a rebranding exercise. Faced with a similar situation, the other entities might also find rebranding a cheaper option compared with the fee demanded by UTI AMC.

“Certain events in the past involving entities that are allowed to use the UTI brand have attracted negative publicity, which may have damaged our reputation,” UTI AMC said.

“Two other entities using the UTI name operate in the financial services sector. Therefore, the public may have come to believe that these entities are all part of the same UTI family and have common ownership and management. It associates us with difficulties they encounter,” it said.

The company does not have direct control over UTI Trustee, and three of the other entities using the name are owned by the Specified Undertaking of UTI which is controlled by the Indian government.