B&T AG Ends Licensing Agreement With B&T USA Over Unpaid Fees

B&T AG has officially terminated its licensing agreement with its U.S. branch, B&T USA, following a prolonged dispute over unpaid licensing fees.

The development came to light after James Reeves of The Firearm Blog presented documentation from B&T AG, on his X account, outlining the licensing termination. The official notice, dated February 19, 2026, was addressed to the ownership of B&T USA and formally revoked the company’s rights to sell, distribute, and operate under the B&T brand.

Breakdown of the Dispute

According to the documentation, payment issues date back to 2023, with B&T AG citing repeated failures by B&T USA to meet its financial obligations under the licensing agreement.

Throughout 2025, B&T AG issued multiple payment reminders and formal notices, including:

• A formal demand for payment on November 24, 2025

• A notice of default on January 20, 2026, just ahead of SHOT Show

Despite these efforts, the outstanding balance remained unresolved.

Attempts to Resolve the Issue

In an effort to settle the dispute, both parties engaged in discussions, including a lengthy WhatsApp conference call on January 12, 2026. Additional in-person discussions took place during the week of SHOT Show, where B&T AG leadership again pressed for payment.

B&T AG, led by CEO Karl Brugger, reportedly offered alternative settlement solutions and flexible payment terms in an attempt to resolve the issue. However, these efforts were ultimately rejected by B&T USA leadership.

Further outreach by legal counsel, including contact from the law firm Wiley Rein on February 17, 2026, was also declined. Following this final refusal, B&T AG withdrew all settlement offers and proceeded with termination two days later.

Immediate Impact of Termination

With the agreement now terminated, B&T USA no longer authorized to:

• Use the B&T name or trademarks

• Sell or distribute B&T AG products under the licensing agreement 

• Represent any affiliation with B&T AG

The company has been instructed to:

• Cease all use of B&T trademarks

• Return U.S.-registered trademarks associated with the brand

• Transfer all intellectual property back to B&T AG under the terms of the agreement

• Remove “B&T” from its corporate name and adopt a new identity

These actions are required to be completed within seven days of receiving the termination notice.

Inventory and Intellectual Property

B&T AG has also requested the return of inventory previously supplied to B&T USA for refund or credit consideration. However, under the terms of the agreement, if B&T AG declines to accept the return, B&T USA may be permitted to sell through remaining inventory.

Additionally, all intellectual property both provided by B&T AG and developed under the agreement is to be returned in accordance with contractual obligations, further severing ties between the two entities.

B&T AG & B&T USA Moving Forward

The termination of this licensing agreement marks a significant shift for both B&T AG and its former U.S. partner. Beyond the immediate business implications, the situation highlights the growing importance of financial accountability and operational alignment in international partnerships. Especially in an industry where brand identity, intellectual property, and distribution control are tightly intertwined.

Moving forward, the key questions will center around how B&T AG reestablishes its presence in the U.S. market and what path B&T USA takes as it transitions away from the brand. For consumers and industry observers alike, this development could signal broader changes in how global firearms manufacturers manage their U.S. operations.