Court rules 'Chacha' as distinctive, restrains use of infringing marks in garment trade.
In a landmark judgment, the Delhi High Court has restrained 'Chacha Cloth House' from using the trademark 'Chacha' for their clothing business, ruling it as an infringement of the registered trademarks of 'Chacha Saree Bazar Pvt. Ltd.' The court found the term 'Chacha' to be a distinctive feature in the context of sarees and garments, contrary to the previous ruling by the Commercial Court which deemed it generic.
The appellate bench, comprising Justices C. Hari Shankar and Om Prakash Shukla, overturned the Commercial Court's decision that denied the interim injunction sought by Chacha Saree Bazar. The High Court determined that the dominant feature of both 'Chacha Saree Bazar Pvt. Ltd.' and 'Chacha Cloth House' marks is the word 'Chacha', which, when used for identical goods, constitutes a prima facie case of trademark infringement.
The court emphasized the importance of assessing the distinctiveness of a trademark with respect to the specific goods or services it represents, rather than in the abstract. It ruled that 'Chacha', though a common vernacular term for 'uncle', bears no etymological connection to sarees or garments, thus retaining its distinctiveness in this trade.
This decision aligns with established judicial principles that infringement occurs when a mark is deceptively similar to another, causing potential confusion among consumers. The High Court applied the anti-dissection rule, affirming that trademarks must be compared as a whole rather than dissecting individual elements. It concluded that despite visual differences in logos, the dominant shared feature 'Chacha' in both trademarks is sufficient to cause consumer confusion.
The ruling further clarified that claims of a mark being "common to trade" must be substantiated with evidence of significant trade presence or turnover using the mark within the specific industry, which was not demonstrated by the respondent.
Consequently, the court has issued an injunction prohibiting 'Chacha Cloth House' from using the contested trademarks in their business operations under Classes 24, 25, and 35, pending the outcome of the ongoing lawsuit. This case underscores the criticality of trademark distinctiveness and the potential for legal protection against infringement in the Indian garment industry.
Bottom Line:
Trademark infringement - The court held that the dominant feature of the appellant's and respondent's marks is "CHACHA." Since both marks are used for identical goods (sarees and garments) and the dominant feature is identical, a prima facie case of infringement is established.
Statutory provision(s): Trade Marks Act, 1999 Sections 17, 28, 29, and 31.
Chacha Saree Bazar Pvt. Ltd. v. Chacha Cloth House, (Delhi)(DB) : Law Finder Doc id # 2857148
