Delhi Court Delivers Landmark Verdict in Restaurant Trademark Dispute
In a significant victory for intellectual property rights in India's food industry, a Delhi district court has permanently restrained a Bengaluru-based restaurant from using the trademark 'CARNATIC' following a six-year legal battle. The ruling comes as a major relief for Delhi's popular Carnatic Cafe, which had been fighting to protect its brand identity since 2019.
Court's Permanent Injunction and Key Directives
District Judge (Commercial) Neelam Singh of Saket Court issued a comprehensive order on October 29 that provides extensive protection to the Delhi establishment. The court permanently restrained Lemonpepper Hospitality Private Limited and all associated parties from using the 'CARNATIC' mark or any deceptively similar variations for their restaurant business operations.
The judicial order specifically prohibits the Bengaluru firm from manufacturing, selling, marketing, advertising, or rendering any restaurant-related services under the contested mark. Additionally, the court directed the defendant to transfer any domain names containing 'CARNATIC' to the legitimate trademark owner within one month.
Substantial Damages Awarded for Goodwill Loss
The court recognized the substantial evidence presented by Carnatic Cafe, noting that the plaintiff had successfully established its statutory rights as registered proprietor, prior and continuous use of the mark, and the significant goodwill associated with the brand. The court awarded damages and costs totaling ₹60,000 to compensate Carnatic Cafe for the loss of goodwill and reputation caused by the unauthorized use of their trademark.
In its observation, the court emphasized that the defendants had failed to file their written statements and submissions within the stipulated time period, further strengthening the plaintiff's case.
Background of the Six-Year Legal Battle
The trademark dispute originated in December 2018 when Carnatic Cafe discovered that Lemonpepper Hospitality had begun operating a restaurant business under the identical 'CARNATIC' name. This discovery prompted the Delhi-based cafe to initiate legal proceedings in April 2019 to protect their established brand identity.
During the initial hearings, a Delhi court had granted an ex-parte ad-interim injunction in favor of Carnatic Cafe, providing temporary relief while the case progressed through the legal system. The cafe maintained throughout the proceedings that the Bengaluru restaurant's adoption of their trademark was completely unauthorized and undertaken with full knowledge of their existing rights.
Carnatic Cafe argued that the defendant, operating in the same industry, had deliberately chosen the mark with the intention of capitalizing on the substantial goodwill and reputation that the Delhi establishment had carefully built over years of operation.
This landmark judgment sets an important precedent for trademark protection in India's rapidly growing food and beverage sector, emphasizing the legal system's commitment to safeguarding intellectual property rights and preventing brand confusion in the marketplace.
