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intermediate entity could grant DHL and DHL Airways the right to
use the DHL trademark in the United States, it could not grant
the right to use the DHL trademark to any other person or entity
anywhere in the world.
In July 1990, there was an agreement in place between DHL
and DHLI providing that, if the transaction with the foreign
investors were terminated, DHLI could not use the DHL name
outside the United States for 5 years.
V. Financial Condition of DHL
During the 1980’s DHL’s principal competitors included
Federal Express, United Parcel Service (UPS), and Airborne
Express (Airborne), all of which were larger, had better
economies of scale, and were in better financial condition than
DHL. In the early 1980’s, Federal Express had an 80-percent
share of the U.S. domestic overnight delivery market, and it did
not regard DHL as a significant competitor.
In the early 1980’s, however, DHL had 30-40 percent of
the U.S. international outbound market. Federal Express, which
did not have or offer its own international line of business at
that time, decided to expand into the European market. Federal
Express did regard the DHL network as the significant competitor
in the European market because of DHL’s existing network and
ability to clear customs. Federal Express failed to build a
successful European delivery network and lost several hundred
million dollars but continued to offer U.S. outbound service.
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