Dishonest adoption of a trademark that mimics a well-known trademarks, warrants an interim injunction
The case of Under Armour, Inc. Vs. Anish Agarwal & Anr.
represents a significant adjudication in the realm of trademark law in India,
focusing on the principles of trademark infringement and passing off under the
Trade Marks Act, 1999. This case involves a dispute between Under Armour, Inc.,
a globally recognized American sportswear company, and the respondents, Anish
Agarwal and his company, who were using the mark "AERO ARMOUR" for apparel. The
core contention was whether the respondents’ mark was deceptively similar to
Under Armour’s registered trademark "UNDER ARMOUR," leading to potential
consumer confusion. The appeal before the High Court of Delhi arose from a
Single Judge’s order denying a complete interim injunction, prompting the
appellate court to examine the doctrines of initial interest confusion,
dishonest adoption, and the scope of trademark protection for well-known marks.
Factual Background: Under Armour, Inc., a company incorporated in the United
States in 1996, is a prominent manufacturer and distributor of sports apparel,
casual apparel, footwear, and related products. The company, founded by Kevin
Plank, entered the Indian market in 2017 through Amazon Fashion and opened its
first retail store in New Delhi in 2019. Under Armour holds multiple trademark
registrations in India and globally, including the word mark "UNDER ARMOUR" and
various formative marks such as "GAMEDAY ARMOUR," "ARMOURVENT," and "UA." These
marks are registered under various classes, including Class 9, 18, 25, 28, 35,
41, and 42, covering apparel, footwear, and related services. Notably, the
standalone word "ARMOUR" is not registered in India but is registered in
jurisdictions like the United States, European Union, and Canada. Under Armour’s
trademarks are globally recognized, associated with significant goodwill due to
extensive advertising, sponsorships, and their use in blockbuster movies.
The respondents, Anish Agarwal (a director and promoter) and his company,
operate in India, manufacturing and selling clothing and footwear under the
trademark "AERO ARMOUR." They also use a logo combining a shield, airplane, and
stripes, reflecting military and aviation themes. Their products, primarily
casual apparel, feature designs inspired by the Indian armed forces, with
taglines like "WEAR YOUR VALOUR" and "WEAR YOUR PRIDE." The respondents applied
for registration of "AERO ARMOUR" under Class 25 in India, which Under Armour
opposed, alleging deceptive similarity with its trademarks. The respondents’
products are sold at a significantly lower price point (e.g., ₹799 for T-shirts)
compared to Under Armour’s products (e.g., ₹2,000 for similar items), raising
concerns about trademark dilution.
Procedural Background:
Under Armour initiated a suit, CS(COMM) 843/2023, against
the respondents in the High Court of Delhi, alleging trademark infringement,
passing off, and copyright infringement. The company sought an interim
injunction under Order XXXIX Rules 1 and 2 of the Code of Civil Procedure, 1908,
to restrain the respondents from using "AERO ARMOUR" and "AERO ARMR" or any
deceptively similar marks. The Single Judge, in an order dated May 29, 2024,
disposed of the application by imposing limited restrictions on the respondents’
use of their marks but declined to grant a full injunction. The Single Judge
reasoned that there was no likelihood of confusion due to differences in the
products’ themes (sports apparel for Under Armour versus military-themed casual
apparel for the respondents), distinct market channels, and the sophistication
of modern consumers. The respondents undertook not to use "ARMR" or place "AERO
ARMOUR" on sleeves in a manner similar to Under Armour’s branding.
Aggrieved by the partial relief, Under Armour filed an intra-court appeal under
Section 13 of the Commercial Courts Act, 2015, read with Order XLIII Rule 1 of
the Code of Civil Procedure, 1908, challenging the Single Judge’s order. The
appellant argued that the Single Judge misapplied the test of initial interest
confusion and failed to recognize the deceptive similarity between "AERO ARMOUR"
and "UNDER ARMOUR," particularly given the respondents’ alleged dishonest
adoption of the mark.
Legal Issue: The primary legal issue in this case was whether the respondents’
use of the mark "AERO ARMOUR" constituted trademark infringement or passing off
under the Trade Marks Act, 1999, particularly Section 29, by being deceptively
similar to Under Armour’s registered trademark "UNDER ARMOUR." A related issue
was whether the respondents’ adoption of the mark was dishonest, warranting an
interim injunction. The court was tasked with determining whether the Single
Judge erred in denying a full injunction, especially in light of the doctrine of
initial interest confusion and the protection afforded to well-known trademarks.
Discussion on Judgments: The court referenced several judgments to analyze the
issues of trademark infringement, initial interest confusion, and dishonest
adoption. The appellant relied on Under Armour, Inc. v. Aditya Birla Fashion &
Retail Ltd. (2023:DHC:2711), where a Single Judge of the Delhi High Court
granted an injunction against the mark "STREET ARMOUR" for being deceptively
similar to "UNDER ARMOUR." The court in that case emphasized initial interest
confusion, holding that a customer of average intelligence and imperfect
recollection could be confused by the defendant’s mark, even if the confusion
was resolved before purchase. The Division Bench found this precedent relevant,
noting the phonetic and structural similarity between "AERO ARMOUR" and "UNDER
ARMOUR," particularly in the use of "ARMR" and sleeve placement.
The respondents’ defense was addressed through Institute Europeen D.
Administration Des Affaires, Insead v. Fullstack Education Pvt. Ltd.* (2023 SCC
OnLine Del 3016), where the Delhi High Court held that phonetic similarity
between "INSEAD" and "INSAID" could cause initial interest confusion, even among
sophisticated consumers like students. The court clarified that consumer
sophistication does not preclude confusion, as modern business trends like
licensing and mergers may lead consumers to assume an association between
similar marks. This case supported the appellant’s argument that even brief
confusion satisfies the infringement test under Section 29.
The court also cited Midas Hygiene Industries (P.) Ltd. v. Sudhir Bhatia & Ors.
((2004) 3 SCC 90), where the Supreme Court held that dishonest adoption of a
mark warrants an injunction, even if there is a delay in bringing the action.
This precedent was pivotal in the court’s finding that the respondents’ adoption
of "AERO ARMOUR," given its similarity to "UNDER ARMOUR" and Under Armour’s
global reputation, was prima facie dishonest.
Additional cases referenced included Baker Hughes ((1998) 74 DLT 745), which
discussed the irrelevance of consumer sophistication in preventing initial
confusion, and Mobil Oil Corp. Vs. Pegasus Petroleum Corp., where the U.S. court
recognized that initial confusion could harm the trademark owner by attracting
customers to a competitor’s product. Similarly, Lois Sportswear, USA Inc. v.
Levi Strauss & Co. and Wincharger Corporation v. Rinco, Inc. (297 F.2d 261
(1962)) were cited to underscore that sophisticated consumers are not immune to
confusion, especially when marks are highly similar. The court
distinguished John Hayter Motor Undertaking Agencies Ltd. v. RBHS Agencies
Limited ([1977] 2 Lloyd’s Rep. 105), rejecting its view that sophisticated
consumers are unlikely to be confused, as it conflicted with the principle of
initial interest confusion.
Reasoning and Analysis of the Judge:The Division Bench conducted a thorough
analysis of the Single Judge’s order and the principles of trademark law. The
court found that the Single Judge erred in concluding that there was no
likelihood of confusion, particularly by misapplying the doctrine of initial
interest confusion. The Bench emphasized that Section 29 of the Trade Marks Act
does not require prolonged confusion; even transient confusion or "wonderment"
at the initial stage is sufficient to establish infringement. The Single Judge
had acknowledged that customers might experience transient wonderment upon
encountering "AERO ARMOUR" but assumed that informed consumers would resolve
this confusion through further inquiry. The Division Bench rejected this
reasoning, holding that the mere occurrence of initial confusion, even if brief,
satisfies the infringement criteria under Section 29(2).
The court further analyzed the similarity between the marks, noting that "AERO
ARMOUR" and "UNDER ARMOUR" share phonetic and visual similarities, particularly
due to the dominant word "ARMOUR" and the respondents’ use of "ARMR," which
mirrored Under Armour’s branding. The placement of "AERO ARMOUR" on the sleeves
of T-shirts, similar to Under Armour’s practice, reinforced the likelihood of
confusion. The Bench disagreed with the Single Judge’s reliance on the
anti-dissection rule, which prohibits analyzing parts of a trademark in
isolation, as the overall commercial impression of the marks was deceptively
similar.
On the issue of dishonest adoption, the court found prima facie evidence that
the respondents knowingly adopted a mark similar to "UNDER ARMOUR," given the
appellant’s global reputation and the respondents’ operation in the apparel
industry. The respondents’ claim that "AERO ARMOUR" was inspired by aeronautics
and military themes was deemed insufficient to negate the inference of dishonest
intent, especially since they used the mark in a manner mimicking Under Armour’s
branding. The court relied on Midas Hygiene to assert that dishonest adoption
warrants an injunction.
The Bench also addressed the Single Judge’s distinction between sports apparel
(Under Armour) and casual apparel (respondents), finding it unpersuasive. Both
parties operated in the apparel market, used similar trade channels, and
targeted overlapping consumer bases, increasing the likelihood of confusion. The
significant price difference (₹2,000 vs. ₹799 for T-shirts) was seen as
potentially diluting Under Armour’s brand, further supporting the need for an
injunction.
Final Decision: The Division Bench allowed the appeal, setting aside the Single
Judge’s order dated May 29, 2024. The court granted an interim injunction,
restraining the respondents from using the marks "AERO ARMOUR," "AERO ARMR," or
any other mark deceptively similar to "UNDER ARMOUR" until the disposal of the
suit. All pending applications were disposed of, and the court directed that the
issues would be finally adjudicated at trial.
Law Settled in This Case: The case clarified several key principles of trademark
law in India. First, it established that initial interest confusion, even if
transient, constitutes trademark infringement under Section 29 of the Trade
Marks Act, 1999. The duration of confusion is irrelevant; the mere likelihood of
a customer associating the impugned mark with the registered mark, even briefly,
satisfies the infringement test. Second, the court affirmed that dishonest
adoption of a mark, particularly one that mimics a well-known trademark’s
phonetic, visual, or structural elements, warrants an interim injunction, as per
Midas Hygiene Industries (P.) Ltd. v. Sudhir Bhatia & Ors.
Third, the strength
of a trademark determines the degree of protection, requiring new entrants to
maintain a greater distance from well-known marks to avoid infringement.
Fourth,
consumer sophistication does not preclude infringement, as even informed
consumers may experience initial confusion due to modern business practices like
licensing or mergers. Finally, the court emphasized that the global appreciation
test, when applied correctly, considers the overall commercial impression of
marks, including their use in similar trade channels, to assess the likelihood
of confusion.
Case Detail: Under Armour, Inc. Vs . Anish Agarwal: May 23, 2025:FAO(OS) (COMM)
174/2024: 2025:DHC:4243:High Court of Delhi: Hon'ble Mr. Justice Vibhu Bakhru
and Hon'ble Mr. Justice Sachin Datta
Disclaimer: The information shared here is intended to serve the public interest
by offering insights and perspectives. However, readers are advised to exercise
their own discretion when interpreting and applying this information. The
content herein is subjective and may contain errors in perception,
interpretation, and presentation.
Written By: Advocate Ajay Amitabh Suman, IP Adjutor - Patent and
Trademark Attorney
Email: ajayamitabhsuman@gmail.com, Ph no: 9990389539
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