The Delhi High Court has granted an interim injunction in favour of US-based Tesla Inc., restraining Indian company Tesla Power India from using the trademarks Tesla Power, Tesla Power USA, or any deceptively similar mark in any form, including in connection with electric vehicles, batteries, inverters, or online advertising.
Court Bars Use of ‘Tesla’ Branding Pending Final Hearing
In a 52-page order dated November 24 and uploaded on November 26, Justice Tejas Karia held that Tesla Inc. had established a strong prima facie case based on its prior registrations, goodwill, and global reputation.
The court noted a statement made on behalf of Tesla Power India that it had no intention to manufacture electric vehicles and would not market any EVs, its own or others’, under the disputed marks until the suit is finally decided.
The court expanded the restriction to all goods and services currently offered by the Indian firm.
“The above statement shall also apply to using, soliciting, providing services, advertising in any manner, including on the internet and e-commerce platform, directly or indirectly, selling or dealing in lead acid batteries for all kinds of automobiles, inverters and UPS,” the order said.
Tesla’s Claim: Indian Firm Riding on Global Reputation
Tesla Inc. approached the High Court seeking a permanent injunction against the Indian entity, arguing that its marks prominently feature the word TESLA and were likely to mislead consumers into believing an association with the US company.
The court agreed, observing that the adoption of the name Tesla Power USA appeared intended to exploit Tesla’s goodwill.
It noted that the Indian firm’s branding:
“appears to be with an intention to mislead the customers into believing that the technology that the defendants are using originated in the USA and that they are connected with the plaintiff, which is based in the USA.”
Balance of Convenience Favouring Tesla Inc.
Justice Karia held that failing to grant an injunction would cause grave prejudice to Tesla Inc.
“Injunction is a relief in equity… the same is in favour of the plaintiff and against the defendants. Further, the balance of convenience also lies in favour of the plaintiff,” the court said.
