Delhi High Court Upholds Trademark Injunction in Family Dispute Over 'SACHAMOTI'
Court affirms interim injunction against Sabu Trade Pvt. Ltd., prioritizing registered trademark rights over claims of prior use.
In a significant ruling by the Delhi High Court, the bench comprising Justices V. Kameswar Rao and Vinod Kumar upheld the interim injunction granted in favor of Rajkumar Sabu, the proprietor of the trademark 'SACHAMOTI'. The dispute between Sabu Trade Private Limited and Rajkumar Sabu involves the rights over the trademark and copyright label 'SACHAMOTI', with both parties asserting ownership based on prior use and registration.
The court's decision, delivered on October 13, 2025, stems from an appeal filed by Sabu Trade Pvt. Ltd. against an order dated March 5, 2024, passed by the Single Judge which granted an interim injunction preventing the appellants from using the 'SACHAMOTI' trademark and label. The appellants, represented by Senior Counsel Mr. J. Sai Deepak, argued that they were the prior users of the trademark since 1993 and that the respondent, Rajkumar Sabu, had falsely registered the trademark in his name.
However, the court emphasized the legal principle that registered trademark rights take precedence under Sections 28(1) and 29 of the Trade Marks Act, 1999, and the registration itself serves as prima facie evidence of validity under Section 31(1). The responsibility to challenge this validity lies with the appellants, who failed to provide sufficiently compelling evidence to overturn the presumption of the registered trademark's validity.
Justice V. Kameswar Rao, in his judgment, underscored the fact that the respondent's registration of the trademark, dating back to 1997, stands as valid unless decisively disproven. The court determined that the documentary evidence presented by the appellants, including their alleged prior use and various advertisements, did not conclusively establish their claim to the trademark 'SACHAMOTI'.
The ruling also noted the historical context, with the respondent claiming that the trademark was originally adopted by his mother in 1982, and registered in his favor later on. The appellants' arguments regarding prior use and family arrangements were deemed insufficient to challenge the respondent's registered trademark rights effectively.
This decision serves as a reaffirmation of the principle that registered trademarks hold significant legal weight, and prior use claims must be supported by substantial evidence. The court's reliance on the settled legal principles regarding trademark registration and infringement reflects a consistent application of the law protecting intellectual property rights.
The case highlights the complexities involved in trademark disputes, especially within the context of family businesses where informal arrangements and understandings often lead to legal challenges. The ruling has implications for businesses operating under similar circumstances, emphasizing the importance of formal registration and legal documentation of trademark rights.
Bottom Line:
Trademark Law - Registered trademark provides prima facie evidence of validity under Section 31(1) of the Trade Marks Act, 1999 - Onus lies on the challenger to disprove the validity of the registration during trial.
Statutory provision(s): Trade Marks Act, 1999 Sections 28(1), 29, 31(1), 34
Sabu Trade Private Limited v. Rajkumar Sabu, (Delhi)(DB) : Law Finder Doc Id # 2793714
