HC grants interim injunction in favour of US-based Tesla, bars Indian firm from using trademark
HC grants interim injunction in favour of US-based Tesla, bars Indian firm from using trademark
New Delhi, The Delhi High Court has granted interim injunction in favour of US-based Tesla Inc by directing Indian company Tesla Power India not to use trademarks ‘Tesla Power’ or ‘Tesla Power USA’ in any form, including manufacturing of electric vehicles.
The court passed the interim order while noting that a statement has been made on behalf of defendants -– the Indian company that they have no intention to manufacture electric vehicles at all and will not market other entities’ EVs as well under the trademarks, ‘Tesla Power’, ‘Tesla Power USA’ or any other brand deceptively similar or use the word ‘Tesla’ till the final disposal of the suit.
“The above statement shall also apply to using, soliciting, providing services, advertising in any manner, including on the internet and e-commerce platform, directly or indirectly, selling or dealing in lead acid batteries for all kind of automobiles, inverters and UPS,” the court said.
Justice Tejas Karia said plaintiff Tesla Inc, whose CEO is Elon Musk, has prima facie made out a case for grant of interim injunction and it has established its prior user as well as good will and reputation.
“Injunction is a relief in equity, and in view of the discussion, the same is in favour of the plaintiff and against the defendants. Further, the balance of convenience also lies in favour of the plaintiff and against the defendants and grave prejudice is likely to be caused to the plaintiff if interim injunction as prayed for is not granted in favour of the plaintiff and against the defendants,” the court said in its 52-page order.
The court’s order was passed on November 24 and made available on its website on November 26 night.
Tesla Inc. had approached the court seeking a permanent injunction to restrain Tesla Power India from using the trademarks ‘Tesla Power’, ‘Tesla Power USA’, accompanying logos and related domain names.
Tesla Inc relied on its prior registrations and its extensive international use of the TESLA trademark and argued that the Indian company’s marks prominently feature the word ‘TESLA’, thereby creating a likelihood of consumer confusion.
The court also found that the Indian company appeared to be leveraging Tesla Inc’s reputation, particularly by adopting the name ‘Tesla Power USA’.
It said this name “appears to be with an intention to mislead the customers into believing that the technology that the defendants are using originated in the USA and that they are connected with the plaintiff, which is based in the USA”.
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