SOMBA K'E/YELLOWKNIFE
The Ministry of Industry, Tourism and Investment announced last week it is terminating trademark licensing agreements with Deepak International Ltd.

Former Industry, Tourism and Investment minister David Ramsay, left, described granting the Polar Bear Trademark to Deepak Kumar, president and CEO of Deepak International Ltd., a "rebirth" in 2013. Last week, that licensing agreement was terminated. - photo courtesy of GNWT

This means the company is no longer an approved Northwest Territories diamond manufacturer, and is no longer allowed to use the Polar Bear Diamond trademark. Polar Bear Diamonds are laser engraved with a microscopic polar bear symbol, certifying the diamonds are Canadian and conflict-free.

"Designed to be marketed as a prestigious, high-end brand, these marks are well regarded in the international market," said Drew Williams, manager of public affairs and communications for the Department of Industry, Tourism and Investment.

"To support consistent origin branding of NWT mined, cut and polished diamonds, the GNWT developed a number of trademarks, including polar bear related trademarks and a stylized diamond maple leaf trademark."

But these engraved bears have been endangered since 2010, when the previous company that held the trademark, Arslanian Cutting Works, went into receivership. In 2013, Deepak International Ltd. was granted exclusive use of the trademark. At the time, then-minister of Industry, Tourism and Investment David Ramsay called Deepak's trademark a "rebirth" for the diamond industry in Yellowknife and the NWT.

Things didn't quite work out that way. Deepak International Ltd.'s plans to open diamond polishing plants ended up with lender Callidus Capital Corp. filing a lawsuit against the company, president and CEO Deepak Kumar and his wife Ragini Kumar.

Callidus filed the lawsuit last year, seeking $4.53 million, alleging Deepak failed to live up to the terms of a loan, and failed to provide financial information, among other claims.

There was a hearing in June to determine whether the case would proceed to trial, but there has been no decision yet.

Kumar used $18 million worth of equipment as security for the loan, which he claimed was stored in shipping containers near the site of the future diamond polishing operations. But when Callidus opened the containers, the equipment was nowhere to be found.

Neither was Kumar. He failed to appear at this summer's NWT Supreme Court hearings.

In the meantime, no diamonds are being engraved with the Polar Bear trademark.

Deepak International Ltd. and Deepak Kumar could not be reached for comment: the company's website states it is under construction and the phone number provided is out of service.

Current Minister of Industry, Tourism and Investment Wally Schumann stated in a news release this shouldn't rattle confidence in the diamond industry.

"The GNWT remains confident about the future of the NWT secondary diamond industry," he stated.

"The NWT was recently reconfirmed as the world's third largest producer of diamonds by value and there continues to be significant manufacturer interest in establishing operations in the NWT.

All NWT diamond producers remain committed to providing up to 10 per cent of their NWT mine production to approved manufacturing operations based in the NWT."

The department could not confirm if any other companies are currently applying for the trademark.

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