Tesla Takes Legal Action Against Indian Firm for Trademark Infringement; Delhi High Court Issues Notice
Elon Musk's carmaker Tesla Inc. has filed a suit against an Indian battery maker for alleged infringement of trademark and unfair trade competition by using the brand name "Tesla Power" to promote its products. The suit seeks an injunction and damages against the company. Elon Musk's Tesla Inc suit stated that it is a multinational company that has been operating and recognized by the name 'TESLA', registered under the laws of Delaware, United States of America.
The suit further claimed that the plaintiff Tesla Inc. has obtained registrations for its trademarks in various jurisdictions around the world. Plaintiff also claims to be in the business of innovative advanced battery technologies. The total revenue for the year 2023 by the company is claimed to be USD 98.6 billion. The presence of the plaintiff on the internet is through its website 'www.tesla.com' and various social media handles.
According to Tesla Inc, a cease-and-desist notice was sent on 18th April 2022 to defendants nos. 1, 2, and 3, to which a holding response was issued by counsel for defendant no.1 on 2nd May 2022, and a detailed response was received through counsel of defendant nos. 1 and 3 on 9th May 2022. Communications were thereafter exchanged in the months of August, September, November, and December 2022, and from January to March in the year of 2023. Since the defendants continued to advertise and market their goods, the the present suit was filed
The bench of Justice Anish Dayal of Delhi High Court in an order passed on May 2, 2024, issued notice to Tesla Powers India Private Limited and other defendants in the matter and listed the hearing on May 22, 2024, for further hearing.
During the hearing, the bench noted that one of the defendants no 3 Kavinder Khurana was present during the hearing. Counsel for the defendants stated that Khurana is the CEO defendant no 1 of an Indian company (Tesla Power India Private Limited); a director in defendant no. 2 which is a company incorporated in the USA (Tesla Power USA, LLC), and a director in defendant no. 5 company. (Energy and Fire Tech India Pvt. Ltd.).
The lawyer further stated that the entity of defendant no 4 (Tesla Power USA Inc.) does not exist anymore since their original business started in 2020 under defendant no. 4, but was later shifted to the Indian entity floated by him.
Lawyer for defendants further stated that business is predominantly into 'Lead Acid Batteries are supplied for automobiles, inverters, and UPS and they do not manufacture any electric vehicles (EVs) of any nature whatsoever. It was also stated that advertisements that were issued were in respect of a marketing alliance that they had with another manufacturer of EVs 'E-Ashwa'.
Counsel for the defendant stated that defendants have no intention to manufacture EVs at all and will not market other entities' EVs as well under their trademark and tradename 'TESLA POWER USA' and or any other brand deceptively similar or use the word 'TESLA'. He further stated that they will not issue any promotional advertisements or material in relation to EV vehicles under their brand name/ tradename. He further undertakes that defendants shall not use the registered device/logos of 'TESLA'. The said undertaking is taken on record and the defendants will be bound by it.
