Royal Enfield faces a restraining order from the Madras High Court, prohibiting an unauthorized service center.

January 9, 2024by Primelegal Team0

Case Title: Eicher Motors Ltd v Nitin Service Point and Automobiles

Case No: C.S. (Comm.Div.) No.77 of 2023

Decided on: 22nd November, 2023

CORAM: THE HON’BLE MR. JUSTICE ABDUL QUDDHOSE

Facts of the Case

The case concerns Royal Enfield, a venerable and well-known motorcycle brand with roots in Redditch, England, where the first motorcycle was built in 1901. With the passage of time, Royal Enfield has become a household name, especially in India, where it was instrumental in providing the Indian Army with seize-proof bikes following the 1947–1948 Indo-Pakistan conflict. Growing ties between Royal Enfield and the Indian military forces resulted in the founding of Enfield India in 1955, which initiated a motorcycle manufacturing and marketing venture on a large scale in India.

The plaintiff noticed in January 2023 that the defendant had opened a service centre under the same name “‘Royal Enfield”, at 4.7 km from one of the plaintiff’s authorized showrooms. Public fears of deceit and confusion were aroused by this close proximity and the same branding. The plaintiff therefore claimed trademark infringement and possible damage to its well-established reputation in a case it filed for relief. The plaintiff claims that the defendant’s use of the same name for its service centre dilutes the plaintiff’s unique identity and may even cost it business by falsely associating the plaintiff’s brand with it.

Legal Provisions

The sections involved in this case are primarily related to trademark law under the Trade Marks Act, 1999. Section 2(1) (zg) defines a well-known trademark. Section 11 deals with the criteria for determining whether a trademark is well-known. The court explicitly referred to section 11 in declaring “ROYAL ENFIELD” as a well-known trademark in the motorcycle industry.

Issues

Did the defendant commit trademark infringement and passing off by unlawfully using the well-known trademark ‘Royal Enfield’?

Courts analysis and decision

A service centre was hit with a restraining injunction by the High Court for using the trademark “Royal Enfield” without authorization in order to market or sell their goods. Section 2(1) (zg) and Section 11 of the Trade Marks Act 1999 designate “Royal Enfield” as a well-known trademark, as the court underlined. The Registrar of Trademarks was then instructed by the court to formally include “Royal Enfield” in the registry of well-known marks. Remarkably, the court recognized the distinct trademarks and uniform exterior and interior designs set by Enfield for every authorized location, guaranteeing a unified corporate identity. According to the ruling, Enfield met the requirements to be recognized as a well-known brand by having ownership rights over the “Royal Enfield” name and its variations.

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Written by- Rupika Goundla

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Primelegal Team

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