02 May 2024 Business Laws >> Business & Commercial Law   |   Trademark Laws in India >> Intellectual Property Rights  

Electric car giant Tesla has won an early victory in its lawsuit against Tesla Power India Private Limited, with the Indian company agreeing not to use "Tesla" branding for electric vehicles (EVs). The lawsuit, filed in May 2024, alleged trademark infringement, passing off, and unfair competition.

Tesla argued that Tesla Power India's use of "Tesla Power" and "Tesla Power USA" on its website and in advertisements created confusion among consumers, potentially damaging Tesla's reputation. Tesla provided evidence of its global brand recognition and trademark registrations in India.

The Indian company, while admitting no wrongdoing, clarified that their business focuses on lead-acid batteries and they have no intention of entering the electric vehicle market. To address Tesla's concerns, they agreed not to use "Tesla" or similar branding for EVs or any marketing partnerships related to EVs. Additionally, they are prohibited from using Tesla's registered logos.

The court allowed Tesla to submit additional documents and file a redacted version of an email as evidence. Both parties will now file written statements with supporting documents. A hearing for further proceedings is scheduled for May 22nd, 2024.

This case highlights the importance of protecting trademarks, especially for globally recognized brands. It also underscores the potential for confusion when similar names are used in different industries. While the lawsuit isn't entirely settled, this initial agreement prevents Tesla Power India from capitalizing on Tesla's brand recognition in the EV market.

  COMMERCIAL COURTS ACT, 2015    TRADE MARKS ACT, 1999