HC bars Gurugram company from using Tesla’s brand name

The Delhi High Court has granted interim protection to Elon Musk’s Tesla Inc ina trademark infringement suit against Gurugram-based Tesla Power, ruling that the Indian firm dishonestly adopted the global brand’s name to exploit its reputation and goodwill.

- Shruti Kakkar

Justice Tejas Karia, in a detailed judgement released on Wednesday, observed that the Gurugram firm's justification for using the “Tesla” trademark “does not inspire confidence”. The court held that the adoption appeared “dishonest with an intention to benefit from the goodwill and reputation” of Tesla Inc's trademarks.

Tesla Inc had approached the court seeking to restrain Tesla Power from using the marks “Tesla Power” and “Tesla Power USA”, arguing that the Indian company was using its registered trademarks alongside the descriptive phrase “POWER USA”. The suit alleged actual confusion among the public when the Gurugram firm announced plans to enter the electric vehicle business.