Ramada Trademark Infringement Case
In a significant ruling, the Delhi High Court has issued a permanent injunction against trademark infringement involving Ramada International Inc. The Court has restrained Clubramada Hotels And Resorts Private Limited (the defendant) from unauthorized use of the RAMADA trademark and awarded ₹10 lakh in damages to the plaintiff.
Background of the Case
Ramada International, a globally recognized hotel chain, was established in 1954 with its first hotel in Arizona, USA. Over the years, the brand has expanded its presence to over 900 hotels across more than 60 countries, including India.
The plaintiff alleged that Clubramada Hotels And Resorts Private Limited had unlawfully incorporated the “Ramada” trademark into its corporate name. Additionally, the defendant had registered domain names using the disputed trademark without authorization.
Legal Notice and Defendant’s Response
Upon discovering the trademark infringement, Ramada International issued a legal notice to the defendant. In response, the defendant admitted to using the trademark but refused to transfer the rights of the disputed domain names to the plaintiff.
Recognizing the continued misuse of its brand identity, Ramada International approached the Delhi High Court, seeking legal intervention to stop the infringement.
Court Proceedings and Key Observations
Ex Parte Ad Interim Injunction (2021)
On December 14, 2021, the Delhi High Court passed an ex parte ad interim injunction, prohibiting the defendant from using the RAMADA name and trademarks. Despite this order, the defendant continued its infringing activities.
Repeated Violation of Court Orders
Ramada International filed two interim applications after observing that the defendant had failed to comply with the Court’s injunction order. The Court reiterated its ruling and instructed the Managing Director of the defendant company to appear in person to explain the continued infringement.
On August 17, 2023, the Court reviewed the MD’s explanation and found it unsatisfactory. The Court recorded that the defendant had shown blatant disregard for judicial orders and directed them to deposit ₹5 lakh as a provisional penalty.
However, despite the Court’s directives, the defendant failed to pay the amount. This further demonstrated willful non-compliance and contemptuous conduct in the case.
Court’s Findings on Trademark Infringement
The Delhi High Court emphasized that Ramada International had been using the RAMADA trademark extensively and continuously across multiple countries, including India. The plaintiff holds at least eight trademark registrations for the “Ramada” brand in India and operates 39 hotels across 30 cities under the Ramada name.
The Court referred to a previous decision by the World Intellectual Property Organisation (WIPO) in Ramada International, Inc. v. Degui Wang, which recognized Ramada International’s exclusive rights over the trademark and ordered the transfer of the infringing domain names to the plaintiff.
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Defendant’s Bad Faith and Unjustified Use of the Trademark
The Court observed that the defendant had full knowledge of the Ramada brand’s reputation but intentionally adopted the disputed mark to exploit the goodwill of the plaintiff. It held that the defendant’s actions were mala fide and stated:
“The defendant’s adoption of the infringing marks cannot be deemed bona fide or honest. The defendant was fully aware of the plaintiff’s registered trademarks and their established reputation, making any plea of ignorance untenable. Further, the defendant has failed to provide any credible justification for adopting the plaintiff’s trademark, clearly intending to exploit the plaintiff’s goodwill and reputation for its own benefit.”
The Court criticized the defendant for deliberate misrepresentation and bad faith use of the trademark, which amounted to a blatant disregard of Ramada International’s statutory and proprietary rights.
Final Ruling and Compensation Awarded
In view of the continued trademark infringement, the Delhi High Court passed a permanent injunction restraining the defendant from:
- Using the RAMADA name in any form, including corporate branding, advertisements, and websites.
- Operating under domain names containing the infringing marks.
Additionally, the Court ordered the defendant to pay ₹10 lakh in damages to Ramada International for unauthorized usage of its trademark.
The Court also ruled that the plaintiff was entitled to recover actual litigation costs and directed it to submit the bill of costs within three months.
Significance of the Judgment
This ruling reinforces the importance of protecting well-established trademarks and sets a strong precedent against companies attempting to misuse reputed brand names. The Delhi High Court’s decision highlights:
- The stringent approach towards willful trademark infringement.
- The importance of compliance with Court orders.
- The financial consequences of bad faith adoption of registered trademarks.
This case serves as a warning to businesses attempting to capitalize on established brand names and reaffirms the legal protections available under Indian trademark law.
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