Billabong International, the world's biggest publicly traded surfwear maker, landed in the court by its former Indonesian licensee, CV Bali Balance (CVBB), on account of the cancellation of its distribution license in Indonesia.

Billabong today claimed that to have been subjected to a civil claim requesting compensation of $US53 million and $US100m for unknown damages in association to a license dispute in Indonesia.

Billabong reveals that it was not very likely that the civil claim would pose any material negative effect on its business or operations outside Indonesia or on the revenue, profitability or financial condition of the Billabong Group.

"Billabong believes, on the basis of the legal advice it has received, that there is absolutely no basis whatsoever for CVBB's civil claim", the company posted in a statement.

The company has disclosed that it has terminated CV Bali Balance's license in 2005 on the grounds of right of termination in the agreement.

According to Billabong, Indonesia represents nearly 0.7 per cent of the group's global sales in fiscal 2009.