Trademark 'TESLA' : Defendants injuncted from using 'TESLA POWER' and 'TESLA POWER USA' for lead acid batteries

Delhi High Court Restrains Tesla Power India from Using 'TESLA' Trademark Court Grants Interim Injunction in Favor of Tesla Inc. over Trademark Infringement and Passing Off

In a significant ruling, the Delhi High Court has granted an interim injunction in favor of Tesla Inc., restraining Tesla Power India Private Limited and its associates from using the trademark 'TESLA' and its associated marks 'TESLA POWER' and 'TESLA POWER USA'. The decision was rendered by Justice Tejas Karia, acknowledging the potential for consumer confusion and the misappropriation of Tesla Inc.'s established goodwill.

The case, titled "Tesla Inc. v. Tesla Power India Private Limited," was centered around allegations of trademark infringement and passing off. Tesla Inc., a global leader in electric vehicles and sustainable energy solutions, claimed that the defendants' use of similar trademarks on products like lead acid batteries and related services was likely to cause confusion among consumers.

The Court found that Tesla Inc. had successfully demonstrated prior use, goodwill, and international reputation of the 'TESLA' trademark, including in India. It was noted that the defendants’ addition of descriptive words like 'POWER' and 'USA' to the 'TESLA' mark did not sufficiently distinguish their products from those of Tesla Inc.

The judgment emphasized the likelihood of consumer confusion, highlighting instances of actual confusion, including media reports that mistakenly associated the defendants' activities with Tesla Inc. The Court underscored the principle that even initial interest confusion could constitute trademark infringement.

The defendants argued that the 'TESLA' mark was inspired by the renowned scientist Nikola Tesla and claimed no exclusive rights over the name. However, the Court dismissed these claims, pointing out the defendants' own applications for trademark registration of 'TESLA POWER', which contradicted their argument of 'TESLA' being common to trade.

Furthermore, the Court addressed the issue of delay in filing the suit, clarifying that delay does not bar interim relief in cases of trademark infringement, especially when the defendants' adoption of the mark was deemed dishonest.

In conclusion, the Delhi High Court directed that the defendants cease the use of the impugned trademarks and any promotional activities under the 'TESLA' name until the final disposal of the suit. The case is set to proceed with further legal processes, including the completion of pleadings and admission of documents.

Bottom Line:

Trademark infringement and passing off - The use of the mark 'TESLA' by the defendants, which is deceptively similar to the plaintiff's registered trademarks, is likely to cause confusion among consumers, and the defendants are restrained from using the impugned trademarks.

Statutory provision(s): Trademark Act, 1999 Sections 28, 29

Tesla Inc. v. Tesla Power India Private Limited, (Delhi) : Law Finder Doc Id # 2812934