Delhi High Court To Indian Company Tesla Power: Stop Using Tesla Trademark On Electric Scooters
The American electric vehicle giant Tesla Inc. headed by billionaire CEO Elon Musk has won the trademark dispute that it had with an Indian company. It has been reported that the Delhi High Court has granted initial relief to Tesla Inc., in its ongoing trademark dispute with Gurugram-based Tesla Power. The court has directed Tesla Power to cease manufacturing, selling, or marketing electric vehicles (EVs) under the Tesla trademark. The Indian Tesla has already instructed its distributors and dealers to remove the Tesla trademark from its electric scooters.
Tesla trademark infringement
Earlier this month it was reported that the American EV maker Tesla Inc., initiated legal proceedings against Tesla Power which is an an Indian company. It accused the Indian company of trademark infringement. The issue revolved around e-scooters branded with “Tesla Power,” which Tesla Inc. argued led to consumer confusion and potential harm to its brand reputation.
In response to these allegations, the Delhi High Court has now directed Tesla Power to halt the production and sale of EVs. Tesla Power has been instructed to take “all and further steps” to comply with the court’s directives.
However, despite assurances from Tesla Power, Tesla Inc. has continued to report the availability of e-scooters bearing the “Tesla” branding. Tesla Inc. stated that the Indian company is now also violating its own undertaking. It has been reported that the next hearing is scheduled for July 3.
Earlier directives from the court-mandated Tesla Power to file a detailed affidavit. The court highlighted that this document must outline the stocks and sales of their electric vehicle scooters. It added that it should include dealer names, launch dates, and current stock levels. The court asked for this comprehensive disclosure to clarify the extent of Tesla Power’s activities and ensure compliance with the court’s orders.
What happened?
As mentioned, the roots of this legal conflict trace back to Tesla Inc. issuing a cease-and-desist notice to Tesla Power. The notice, which was ignored by the Indian company, which made Tesla Inc. to seek judicial intervention. The lawsuit demanded unspecified damages. It also requested a permanent injunction against Tesla Power for unauthorized use of the trademark.
During the court proceedings, Tesla Inc. presented compelling evidence including website screenshots, that Tesla Power had unauthorized association with “Tesla Power USA LLC.” The American EV maker also emphasized that Tesla Power’s claims of being headquartered in Delaware. This is exactly where Tesla Inc. is also incorporated and this complicated the trademark infringement issue even more.
Tesla Power’s Defense and Court’s Response
Tesla Power, which is primarily a manufacturer of lead-acid batteries, defended its position. It stated that it has no plans to manufacture EVs and that its operations are distinct from Tesla Inc.’s business. The company also highlighted its long-standing presence in India and compliance with all necessary government approvals.
However, despite this Delhi court grants Tesla Power three weeks to submit a written response with supporting documents. The judge scheduled a follow-up hearing for May 22. During which both parties were expected to present their arguments and evidence. The court’s recent decision to set another hearing for July 3 indicates ongoing scrutiny of Tesla Power’s activities.