Tesla Inc’s trademark dispute with Gurugram’s Tesla Power heads to Delhi High Court
The court had last year asked the parties to settle their dispute over the alleged infringement of the trademark through mediation and appear before the Delhi High Court Mediation and Conciliation Centre.
Tesla Inc, the multinational automotive and clean energy company, had moved court in May alleging infringement of its Tesla trademark by the Gurugram-based firm and had sought restraint orders. It said that Tesla Power’s use of the trademark in India was causing confusion among consumers and potentially harming its business interests. Tesla Inc further said consumers were mistakenly buying Tesla Power’s batteries assuming they were associated with the US company and thereafter registering complaints with them.
However, Tesla Power said it was not manufacturing electric vehicles but only selling lead acid batteries for automobiles and inverters.
Tesla Inc on May 28 had accused Tesla Power of violating the undertaking given to the court, saying that despite an undertaking that it had no plans to enter the electric vehicle market, electric scooters were being sold by the Gurugram company through dealers under various sub-brands. The court had then asked Tesla Power to file an affidavit on the number of electric scooters sold and the current stocks available with it.
Tesla Power had argued that it was not in violation of the trademark as Tesla was not a coined mark, and the US company cannot claim “monopoly” over it. There are many companies with the same name in the world, including in India. It further told the court that it had written to its vendors and partners to remove the Tesla marks on the electric scooters. “We don’t wish to sell anything beyond the undertaking,” it had assured the HC.
