Bombay High Court Stops Trademark Infringement of Everest Tikhalal
The Bombay High Court has delivered a landmark judgment restraining Shyam Dhani Industries Pvt. Ltd. from using the trademark ‘Tikhalal’, belonging to the renowned spice brand Everest. Alongside granting relief to the plaintiff, Everest Food Products Private Limited, the Court imposed a penalty of ₹2 lakh on Shyam Dhani Industries for filing a false claim of trademark usage since 2006. The judgment came after the plaintiff sought an injunction against the defendants for infringing on their registered trademark and engaging in deceptive practices.
Key Observations by the Court
Justice R.I. Chagla, presiding over the case, highlighted the lack of justification from the defendants for adopting the impugned trademark. The Court observed that the defendants’ usage of the ‘Tikhalal’ trademark created the potential for confusion among consumers and could harm Everest’s established reputation.
In the ruling, Justice Chagla remarked:
“The defendants’ use of the impugned trademark would dilute the distinctiveness of the plaintiff’s trademark and lead to irreparable injury to the plaintiff’s goodwill and reputation, which cannot be compensated monetarily.”
Everest’s Proprietary Rights
The Court acknowledged that Everest has been the registered proprietor of the ‘Tikhalal’ trademark since 2002. Over the years, the company has used the mark extensively for its chili powder products, earning significant goodwill and statutory rights. The ruling favored Everest due to its consistent and transparent use of the trademark.
The Court underscored that Everest’s rights were not only statutory but also rooted in common law principles. These rights enabled them to seek legal protection against unauthorized usage of their trademarks.
Background of the Dispute
Everest Food Products traces its origins back to 1961 when its predecessor, M/s. Vadilal Champaklal & Co., began manufacturing and selling spices under the ‘Everest’ brand. In 1989, the company licensed its trademark to M/s. S. Narendrakumar & Co., which later became Everest Food Products Private Limited. By 2002, Everest had registered the unique wordmark ‘Tikhalal’ specifically for chili powder products, enhancing the brand’s portfolio and reputation.
The conflict began in 2019 when Everest discovered a product labeled ‘Shyam Tikha Lal’, distributed by Shyam Dhani Industries. Despite legal notices, the defendant failed to respond, prompting Everest to file a suit and interim application.
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Legal Findings and Implications
The Court found substantial evidence of trademark infringement under Section 29(2)(c) and Section 29(3) of the Trade Marks Act, 1999. The defendants’ trademark ‘Shyam Tikha Lal’ was deemed visually and phonetically similar to Everest’s ‘Tikhalal’, leading to a likelihood of consumer confusion.
The Court rejected the defendant’s claims of prior use and territorial jurisdiction, noting discrepancies in their affidavits and fabricated sales invoices. Justice Chagla stated:
“The plaintiff has established overwhelming goodwill and reputation for the ‘Tikhalal’ trademark since its registration in 2002, making this a clear case for granting an injunction.”
The Court also emphasized that the defendants’ trademark registration could not serve as a defense against the plaintiff’s claims of passing off.
Directions and Penalty
The Court directed Shyam Dhani Industries to cease using the ‘Tikhalal’ trademark immediately. Additionally, the defendants were ordered to pay ₹2 lakh to Everest Food Products within four weeks for filing a false claim of usage since 2006. The penalty reflects the Court’s stance against fraudulent practices and aims to deter similar violations in the future.
Conclusion
This judgment reinforces the importance of protecting intellectual property rights and maintaining the integrity of registered trademarks. It underscores the judiciary’s commitment to upholding the rights of businesses that invest time and resources in building their brand identity.
Everest Food Products has emerged victorious in preserving the exclusivity of its ‘Tikhalal’ trademark, securing its position as a trusted name in the Indian spice market. The ruling sends a strong message to entities attempting to infringe upon established trademarks, ensuring fair competition and consumer trust in the marketplace.
Read from Outsource: Trademark Protection: Everything You Need to Know
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