Mint Explainer: How Tesla’s first India lawsuit will affect EV trademark battles

livemint.com:

Mint examines Tesla's aggressive trademark-protection strategy and how India's trademark regime shields foreign companies operating in India from infringement by domestic entities. We also explain how this case could set a precedent for future trademark-infringement cases in India’s growing EV market. On 4 May, Tesla Inc sued Tesla Power India Pvt Ltd, accusing the Gurugram firm of infringing on its trademark and misleading consumers by implying association with Tesla Inc's electric vehicle (EV) batteries.

Tesla Inc alleged that customers were buying batteries from Tesla Power assuming it was affiliated with the US firm, leading to confusion and potential damage to Tesla Inc's reputation as it looks to enter the Indian EV market. In response, Tesla Power argued that its primary business was supplying lead-acid batteries for various applications such as automobiles, inverters and UPS systems, and that it was not involved in manufacturing EVs. The company said any advertisements featuring the Tesla name were part of a marketing alliance with another EV manufacturer, E-Ashwa, and that it had no intention of producing or marketing EVs under its own brand.

The company pledged not to use the Tesla trademark or any similar deceptive branding for EVs, and agreed not to feature Tesla's registered logos or trademarks in promotional material related to EVs. Tesla Inc, however, sought a complete ban on Tesla Power using the Tesla trademark. The Delhi High Court has responded by issuing a notice and restraining Tesla Power from publishing any promotional advertisements featuring EV products with the Tesla trademark.