Answer Happy

Carefully read the case and identify the legally relevant
issues. Use the applicable law and explain the solution to the
dispute between the parties.
The famous Portuguese car manufacturer CPM (Companhia Portuguesa
de Motores) ceased operations after the death of its founder Joe
Rodinhas in 1986. The company named "COMPANHIA PORTUGUESA DE
MOTORES, LDA." owned the production facilities and restarted
operations later, selling for different car manufacturers. An
American company named "BESTAUTO, INC." bought the trademarks "CPM"
and "Companhia Portuguesa de Motores". As disputes were raised
between "BESTAUTO, INC." and "COMPANHIA PORTUGUESA DE MOTORES,
LDA." about the use of this mark by the latter, both companies
entered, in 1988, into a contract providing perpetual obligations
of payment by "COMPANHIA PORTUGUESA DE MOTORES, LDA." for the use
of the company name to identify itself as a manufacturer of the
goods it would distribute world-wide. Both parties expressly
declared the intention to create perpetual obligations as a direct
consequence of the indefinite duration of the trademark. In 1989,
the European Directive on Trademarks (89/104/EEC) was adopted,
introducing more liberal terms than those agreed with "BESTAUTO,
INC." "COMPANHIA PORTUGUESA DE MOTORES, LDA." presented a claim to
a court of arbitration asking for the modification of the contract,
only for its effects on the European territory, because the
liberalization introduced by the European Directive put the company
in a situation of hardship. "COMPANHIA PORTUGUESA DE MOTORES, LDA."
also invoked its right to terminate the contract on the ground that
the contract provided for perpetual obligations.
What should be the decision concerning the Portuguese Company's
claims?