Delhi High Court Rules in Favor of Tesla Inc in Trademark Battle Against Tesla Power India

New Delhi:

The Delhi High Court has issued an interim injunction favoring US-based Tesla Inc, directing Indian company Tesla Power India to cease using trademarks 'Tesla Power' or 'Tesla Power USA' in any form, including electric vehicle manufacturing.

This interim order was passed after noting that representatives of the Indian company stated they have no intention to manufacture electric vehicles or market other companies' EVs under the trademarks 'Tesla Power', 'Tesla Power USA', or any deceptively similar brands using the word 'Tesla' until the final resolution of the lawsuit.

The court stated, "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."

Justice Tejas Karia determined that Tesla Inc, headed by CEO Elon Musk, had established a prima facie case warranting an interim injunction, having proven its prior usage and established goodwill and reputation.

The judge further noted, "Injunction is a relief in equity, and in view of the discussion, the same is in favour of the plaintiff and against the defendants. Further, the balance of convenience also lies in favour of the plaintiff and against the defendants and grave prejudice is likely to be caused to the plaintiff if interim injunction as prayed for is not granted."

The comprehensive 52-page order was issued on November 24 and made available on the court's website on November 26 evening.

Tesla Inc. had filed the lawsuit seeking a permanent injunction to prevent Tesla Power India from using the trademarks 'Tesla Power', 'Tesla Power USA', associated logos, and related domain names.

The American company based its case on prior registrations and extensive international usage of the TESLA trademark, arguing that the Indian company's marks prominently feature the word 'TESLA', creating likely consumer confusion.

The court also determined that the Indian company appeared to be capitalizing on Tesla Inc's reputation, particularly by adopting the name 'Tesla Power USA'.

According to the court, this name "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".