Czech Finance Group Using Harvard Name

The Harvard name can almost always be counted on to raise heads and stir interest. For one enterprising young Harvard graduate, the label has been a money-maker even in Eastern Europe.

For the past year and a half, an investment company calling itself Harvard Capital and Consulting (HC&C) has been offering investment opportunities and other business services like financial advice and corporate law in Czechoslovakia, The New York Times reported last week.

The Harvard label has been a key factor in enabling the company to pump millions of dollars into the Czechoslovakian economy since 1990, thus aiding the weak Czech financial market in its effort to privatize industry, the newspaper reported.

The firm's founded, Victor Kozeny '89, told The Times that he chose the company's name because he has a bachelor's degree in economics from Harvard.

However, in a prepared statement released last week, University administrators expressed disapproval over the unauthorized use of the Harvard name.

"Harvard University has no affiliation or involvement with Harvard Capital and Consulting Co. and was unaware of its existence until recently," said Vice President and General Counsel Daniel Steiner '54. "The University has not authorized use of the Harvard name in connection with this company."

Steiner said in an interview yesterday that businesses which advertise under the Harvard name without permission not only take advantage of the University's reputation but also pose a considerable threat to consumers.

"What bothers us is that apparently people are being misled, as the name of Harvard has been used in [HC&C] advertising," Steiner said.

Steiner said that the University has no immediate plans to take legal action against the firm. He added, however, that Harvard has taken steps in the past against companies that had refused to voluntarily drop the Harvard label.

Two years ago, the University officiallyregistered the Harvard name as a trademark. Thatmove, however, was designed to control theproliferation of Harvard T-shirts andsweat-shirts, not investment companies.

But while Harvard is not currently planning anylawsuits, the Czech government is poised toinspect and possibly shut down investmentcompanies like HC&C, according to Tomas Jezek, theCzech Republic's Minister of Privatization.

Jezek told The Times last week that hesuspected HC&C, the largest of the investmentgroups in Czechoslovakia, was buying up largequantities of government coupons in order toresell them to the public at a profit.

HC&C may also be enticing Czech citizens tohand over to the investment group their control of"coupons," which are an important element ofCzechoslovakia's sweeping plan to privatizestate-owned industries, Jezek told The Times.

The government hopes to eventually convert thecoupons into stocks and bonds, Jezek said.

Czech and Slovak Ministers of Privatizationhave already put a 10-day moratorium on couponsales in an effort to prevent speculators fromfurther depleting coupon stores, according toJezek.

Jezek told The Times that he would take thelicense away from any investment groups foundguilty of speculation

Two years ago, the University officiallyregistered the Harvard name as a trademark. Thatmove, however, was designed to control theproliferation of Harvard T-shirts andsweat-shirts, not investment companies.

But while Harvard is not currently planning anylawsuits, the Czech government is poised toinspect and possibly shut down investmentcompanies like HC&C, according to Tomas Jezek, theCzech Republic's Minister of Privatization.

Jezek told The Times last week that hesuspected HC&C, the largest of the investmentgroups in Czechoslovakia, was buying up largequantities of government coupons in order toresell them to the public at a profit.

HC&C may also be enticing Czech citizens tohand over to the investment group their control of"coupons," which are an important element ofCzechoslovakia's sweeping plan to privatizestate-owned industries, Jezek told The Times.

The government hopes to eventually convert thecoupons into stocks and bonds, Jezek said.

Czech and Slovak Ministers of Privatizationhave already put a 10-day moratorium on couponsales in an effort to prevent speculators fromfurther depleting coupon stores, according toJezek.

Jezek told The Times that he would take thelicense away from any investment groups foundguilty of speculation