Court restrains Dpka Universal Consumer Ventures from using 'Lotus Splash' due to infringement of Lotus Herbals' registered trademark 'Lotus.'
In a significant ruling, the Delhi High Court has granted a temporary injunction against Dpka Universal Consumer Ventures Private Limited, restraining them from using the trademark "Lotus Splash" or any similar marks infringing on Lotus Herbals Private Limited's registered trademark "Lotus." The division bench, comprising Justices V. Kameswar Rao and Vinod Kumar, found that the use of "Lotus Splash" by the respondents created a likelihood of confusion among consumers, infringing the appellant's rights under the Trade Marks Act, 1999.
The court examined the elements of trademark infringement and passing off, concluding that the appellant's mark "Lotus," which has acquired substantial goodwill and reputation, was likely to be confused with the respondents' "Lotus Splash" mark. Despite arguments from the respondents that "Lotus Splash" was used descriptively to indicate the presence of lotus extracts in their product, the court determined that the term was used as a trademark, not just as a descriptor.
The court emphasized that the use of "Lotus Splash" could lead to initial interest confusion, which is sufficient under Section 29 of the Trade Marks Act, 1999, to establish deceptively similar marks. The defense of descriptiveness under Section 30(2)(a) was rejected, as the term did not merely describe the product's quality or characteristics but served as a trademark.
The court also highlighted that the appellant, being a prior user with a registered trademark, was entitled to protection. The balance of convenience and irreparable harm favored the appellant, as the respondents' use of the mark could dilute the goodwill and reputation associated with the "Lotus" trademark.
The injunction prevents Dpka Universal Consumer Ventures and associated parties from manufacturing, selling, or advertising products under the "Lotus Splash" mark or any deceptively similar marks until the final resolution of the suit. This decision underscores the court's commitment to protecting registered trademarks and preventing consumer confusion in the marketplace.
Bottom Line:
Trade Marks Act, 1999 - Temporary injunction granted restraining respondents from using the trademark "Lotus Splash" or "Lotus" derivative marks, or any other deceptively similar trademarks, as it was held to infringe the appellant's registered trademark "Lotus". The use of "Lotus Splash" was deemed to be as a trademark and not merely descriptive, negating the applicability of Section 30(2)(a) of the Act.
Statutory provision(s):
Trade Marks Act, 1999 Sections 27, 29, 30(2)(a), 35
