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Toyota Prius trademark case: Law versus justice

Summary:This decision, though in favour of the Indian company, is obviously following the path of strict legality and totally ignoring the fairness and justice part of the business dispute. It is very well known in the legal fraternity that the protection granted to registered trademark is much more than that of passing off. Last week, the Supreme Court decided an interesting case regarding trademark in favour of an Indian automobile spare part company and against the Japanese automobile giant Toyota. An Indian automobile spare parts company started selling products under the brand name of Toyota, Innova, and Prius a few years later. In the instant case, the trial court had no problem in deciding that the Indian automobile spare part company had wrongly – in law – used the trademarks Toyota and Innova.

Last week, the Supreme Court decided an interesting case regarding trademark in favour of an Indian automobile spare part company and against the Japanese automobile giant Toyota. This decision, though in favour of the Indian company, is obviously following the path of strict legality and totally ignoring the fairness and justice part of the business dispute. It so happened that by the turn of the century, Japanese giant Toyota had created a new trademark Prius, which gained popularity abroad, but was not launched in India. An Indian automobile spare parts company started selling products under the brand name of Toyota, Innova, and Prius a few years later.

The Japanese company did not take any action immediately at that time, and it is quite natural also that the Japanese company might not have even known about this development. Sometime later, when Toyota initiated legal action, the issue in the trial court was more about the protection given to registered versus unregistered trademarks, that is the comparison of the strength of protection to registered trademarks and the remedy of passing off under the common law. It is very well known in the legal fraternity that the protection granted to registered trademark is much more than that of passing off. However, an important consideration is that the registration itself must be genuine and without an intention of misusing already established marks, even if unregistered. In the instant case, the trial court had no problem in deciding that the Indian automobile spare part company had wrongly ��“ in law ��“ used the trademarks Toyota and Innova.

https://www.nyoooz.com/news/ahmedabad/992193/toyota-prius-trademark-case-law-versus-justice/