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Monday August 12

DuPont Performance Coatings Licenses Use of Color Formulas

DuPont Performance Coatings (DPC) has initiated a worldwide licensing program for color formulas for the DuPont Finishes®, Standox®, Spies Hecker®, Nason® and DuPont Industrial Coatings brands. The focus of the program is to secure the competitive advantage represented by these formulas for DPC product systems and end users, and to prevent free-riding competitors from taking advantage of DPC color formula research.

The licensing program creates a contract between DPC and customers who receive these color formulas via microfiche, CD or web. The license will be activated when the customer opens the microfiche package, enters an approval on-screen during updates or on-line when accessing formulas through the DPC Web site. By activating the contract, the color formula user agrees to keep the formula confidential, to follow the formula requirements, and to not substitute alternate products without paying DPC a royalty for use of the formulas. DPC brand user collision repair facilities and jobbers who use color formulas properly will see no other changes.

Commenting on the new policy, Doug Moore, vice president, DuPont Refinish, said, "Accurate, easy-to-use color formulas represent a substantial business advantage to our jobbers and our customer body shops. DuPont Finishes, Standox, Spies Hecker, Nason and DuPont Industrial Coatings brands products are designed to work together as brand systems to ensure quality, color accuracy and consistency. Substitute products may not meet DPC quality standards, and may jeopardize color accuracy and the integrity of the systems, and invalidate any brand warranty."

DPC is working collaboratively with the great majority of its jobbers and collision repair facilities who are using DPC formulas correctly. The response to those who use substitute products will be a required royalty fee of $2,400 per year to use the formulas in a non-approved manner.

The agreement became a component of all color formula updates on August 1, 2002.

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