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Entitlement of Injunction against Trade Name on the Strength of Trade Mark

This legal article delves into a recent appellate decision by the Hon'ble Division Bench of the High Court of Delhi, addressing the entitlement of an injunction against the use of a trade name based on the strength of a registered trademark. The case in question revolves around the trademark "MABELLE," where the appellant sought relief against the respondent's use of the mark as part of their company name. The article analyzes the court's reasoning, focusing on the interplay between trademark rights and corporate nomenclature, with particular emphasis on Section 16 of the Companies Act, 2013.

The dispute in question arises from an appellate challenge against an order dated 22.02.2023, where the Ld. ADJ permitted the respondent to use the trademark "MABELLE" as part of their company name. The crux of the decision rested on the premise that the inclusion of "MABELLE" in the corporate name granted the respondent the right to use the mark. The appellant contested this decision, arguing that Section 16 of the Companies Act, 2013, had been overlooked.

Trademark Act Implications:
In granting the appeal, the Hon'ble Division Bench delved into the Trade Marks Act, particularly Section 29(6)(d). The court reasoned that the use of "MABELLE" in the respondent's corporate or business name, including on invoices and business communications, fell within the ambit of this section. Notably, the court found that such use constituted solicitation and an attempt to derive benefits associated with the mark, thus violating the provisions of the Trade Marks Act.

The concluding Note:
The appellate decision in this case sets a significant precedent regarding the entitlement of an injunction against the use of a trade name based on the strength of a registered trademark. The court's careful analysis of Section 16 of the Companies Act, 2013, and its alignment with the provisions of the Trade Marks Act showcases the necessity of protecting established trademark rights even in the context of corporate nomenclature.

The Case Law Discussed:
Case Title: Loreal Vs Ravi Gandhi
Date of Judgement/Order:07.12.2023
Case No. FAO (COMM) 116/2023
Neutral Citation No:NA
Name of Hon'ble Court: Delhi High Court
Name of Hon'ble Judge: Yashwant Verma and Ravinder Dudeja HJ

Ideas, thoughts, views, information, discussions and interpretation expressed herein are being shared in the public Interest. Readers' discretion is advised as these are subject to my subjectivity and may contain human errors in perception, interpretation and presentation of the fact and issue involved herein.

Written By: Advocate Ajay Amitabh Suman, IP Adjutor - Patent and Trademark Attorney
Email: [email protected], Ph no: 9990389539

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