Protecting Well-Known Marks: Why Delhi HC Favored Tesla in Trademark Dispute

Protecting Well-Known Marks: Why Delhi HC Favored Tesla in Trademark Dispute. Trademarks help people recognize the real source of a product. When a company becomes famous, its name becomes valuable because people trust it. But if another company starts using the same or similar name, it can confuse the public and harm the original company. Something like this happened when Tesla Inc, the American electric car company, complained in India that a Gurugram-based company named Tesla Power was using its name without permission. The Delhi High Court looked into the issue and temporarily stopped the Indian company from using the name “Tesla.”
Background of the Trademark Dispute
Tesla Inc is a very famous American company known for electric cars, solar products, and strong battery technology. Over many years, Tesla has built an international reputation. The name “Tesla” has become a powerful symbol of innovation and high-quality products. Because of this, the company protects its brand very strongly all over the world.
Tesla Power is an Indian company in Gurugram. It mainly sells batteries, inverters, UPS systems, and water purifiers. For a long time, Tesla Power said that it was not involved in the electric vehicle business. But later, the company started showing electric scooters and EV-related items on its website. All of these were displayed under the name “Tesla Power.”
When Tesla Inc came to know about this, they filed a case in the Delhi High Court. They argued that Tesla Power was using the name “Tesla” in a dishonest way and creating confusion among customers. Tesla Inc also said that Tesla Power used phrases like “Tesla Power USA,” which could make people think the company was American or connected to Tesla Inc, even though it was not.
This raised serious concerns, and the case came before Justice Tejas Karia in the Delhi High Court.
Observations of the Delhi High Court
The court looked carefully at the arguments and decided that Tesla Power did not adopt the name honestly. The judge said that the Indian company’s explanation for using the name “Tesla” was not convincing. It looked as if the company wanted to take advantage of the huge reputation of the American Tesla brand.
The court was especially worried about customer confusion. “Tesla” is a very famous name. If another company uses the same name, many people may assume that Tesla Power is linked to Tesla Inc. Even if the products are different, the same name can easily mislead the public. The judge explained that for an average customer, brand names play a big role in making buying decisions. A name like “Tesla” automatically reminds people of the American electric car company.
Another important point was that both companies worked in similar areas. Tesla Power said it only sold normal lead-acid batteries, not electric vehicles. But the court explained that batteries are a basic and essential part of electric vehicles. In an EV, the battery is more important than anything else. Tesla Inc also sells battery-related products. This means both companies operate in connected or related fields, which increases the chance of confusion even more.
The court also pointed out that Tesla Power had earlier given a written promise to the court. In that promise, the company said it would not enter the EV market and would not promote EV-related products under the name “Tesla Power.” However, after giving this promise, the company continued to advertise electric scooters. Breaking a promise made to the court made their actions look dishonest and unreliable.
The use of the phrase “Tesla Power USA” also looked misleading. Tesla Power is an Indian company, but using a foreign-sounding name may give customers a wrong impression. This added to the court’s doubts about the company’s intentions.
Interim Order of the High Court
After considering all the facts, the Delhi High Court passed a temporary order in favour of Tesla Inc. In this order, the court told Tesla Power that it must stop using the names “Tesla,” “Tesla Power,” and “Tesla Power USA” in any form. This ban applies until the final decision of the case.
The order applies to everything: product labels, packaging, websites, social media, online advertisements, and offline promotion. Tesla Power cannot use “Tesla” anywhere.
The court also said that the earlier promise made by Tesla Power would remain in force. This means the company cannot enter the EV market or promote EV-related products while the case is ongoing.
Relevant Provisions of the Trademarks Act, 1999
The High Court’s decision is based on several important sections of the Trademarks Act, 1999. These laws protect registered trademarks and prevent others from using them unfairly.
Section 29 – Trademark Infringement
This section says that if someone uses the same or similar trademark for similar or related goods, and people may get confused, it is a case of infringement. In this case, the name used by both companies is identical. Their products are related, and customers may think both companies are connected. So, Section 29 clearly applies.
Section 29(4) – Protection of Well-Known Marks
This section protects famous trademarks even when the other company sells different goods. If a famous mark is used without justification and it harms the reputation of the original company, it is considered infringement. Tesla is a very famous global brand, so this section strongly supports Tesla Inc.
Section 11 – Prohibition of Similar Marks
This section prevents trademarks that are similar to well-known marks from being registered. It shows that Indian law protects popular trademarks very seriously.
Section 30 – Honest Use Only
This section provides some exceptions, but only when the use of the trademark is honest. The court found Tesla Power’s use dishonest, so this section does not help them.
Relevant Case Laws
Many earlier Indian court cases support the reasoning behind the Tesla judgment.
PhonePe Pvt. Ltd. vs. BharatPe
Judgment Dates: 15 April 2021 & 17 August 2022
PhonePe said BharatPe’s name sounded very similar because both end with “Pe.” Even though spelling was different, the pronunciation was almost the same. The court said that customers may get confused because both companies work in the same field (digital payments).
So, similar-sounding names in the same market can create confusion.
MakeMyTrip (India) Pvt. Ltd. vs. Makemytravel USA Inc.
Judgment Date: 5 April 2022
MakeMyTrip said that “MakeMyTravel” looked too much like its own name. Even if some letters were different, the overall structure and meaning were very close. The court agreed and said that copying the same pattern of words also counts as infringement.
Hindustan Unilever Ltd. (HUL) vs. Emami Ltd. – Glow & Handsome Dispute
Judgment Date: 28 July 2020
HUL used the name “Glow & Lovely,” and Emami started using “Glow & Handsome.” The court said that similar naming patterns can give customers the wrong idea that the products come from the same company. Even if the products are different, the naming style can mislead buyers.
Dabur India Ltd. vs. Emami Ltd.
Judgment Date: 24 December 2021
Dabur argued that Emami copied the colour and design of its chyawanprash bottle. The court agreed and stopped Emami from using the confusingly similar packaging. This case shows that even packaging similarity can cause customer confusion.
MakeMyTrip vs. Orbit Corporate & Leisure Travels
Judgment Date: 15 December 2022
Orbit Travels used advertising materials that looked very similar to MakeMyTrip’s branding. The court said that copying any part of a famous brand can harm its reputation. So, Orbit was stopped from using similar marks.
Why Tesla Power’s Arguments Failed
Tesla Power tried to argue that it used the name “Tesla” because it was inspired by the scientist Nikola Tesla. But the court did not accept this because of the company’s behaviour. If the name was chosen honestly, there was no need to use phrases like “Power USA.” Also, the company did not follow its earlier promise to the court. This made it look like Tesla Power was not being truthful.
Tesla Power also said that its products were different from Tesla Inc. But the court explained that batteries and EV technology are connected. Tesla Inc also makes batteries and energy-related products. Because the goods were related, confusion was even more likely.
Importance of This Judgment
This judgment is important for several reasons.
It protects famous international brands from misuse in India. Companies like Tesla need confidence that their name will be safe in the Indian market.
It protects customers from being misled. If someone buys a product thinking it belongs to Tesla Inc, they may be misled if it actually belongs to another company.
It stops unfair competition. A company should not take advantage of a famous name without permission.
It also shows that honesty is important in business. Companies should not try to copy famous names or create false impressions.
Finally, the judgment shows that promises made to the court must be respected. Breaking such promises weakens a company’s credibility.
Final Word
The Delhi High Court’s decision to stop Tesla Power from using the name “Tesla” is an important step in protecting trademark rights in India. The court found that the Indian company’s use of the name was not honest and could confuse customers. Tesla is a globally famous brand, and such names deserve strong protection.
By applying the relevant sections of the Trademarks Act and relying on important case laws, the court protected both Tesla Inc and the public interest. The case is still pending, but the interim order already sets a strong example for trademark safety and fair business practices. 
Frequently Asked Questions (FAQs)
Q1. What was the main issue in the Tesla vs. Tesla Power case?
Ans. The main issue was that Tesla Power, an Indian company, was using the name “Tesla,” which is identical to the globally famous brand owned by Tesla Inc. This raised concerns of trademark infringement and customer confusion.
Q2. Why did the Delhi High Court stop Tesla Power from using the name “Tesla”?
Ans. The court found that Tesla Power’s use of the name was dishonest, misleading, and likely to confuse customers into believing it was connected to Tesla Inc. The company even promoted EV-related products despite promising not to do so, making the court doubt its intentions.
Q3. Does trademark infringement apply even if the products are different?
Ans. Yes. Under Section 29(4) of the Trademarks Act, 1999, even if the goods are different, using a famous or well-known mark without justification can still amount to infringement if it harms the brand’s reputation.
Q4. What is a “well-known trademark”?
Ans. A well-known trademark is one that is recognized by the public across regions and markets. “Tesla” is considered a globally well-known mark because of its reputation in electric vehicles and energy products.
Q5. How did Tesla Power mislead customers?
Ans. Tesla Power used phrases like “Tesla Power USA”, advertised EV-related products, and used branding that could make customers believe it was connected to Tesla Inc, even though it is an Indian company with no such relationship.
Q6. What provisions of the Trademarks Act were applied in this case?
Ans. Key provisions included:

Section 29: Trademark infringement

Section 29(4): Protection for well-known marks

Section 11: Prohibition of similar marks

Section 30: Honest use exception (not applicable due to dishonest conduct)

Q7. Did Tesla Power claim any justification for using the name?
Ans. Yes, Tesla Power claimed it used the name to honor scientist Nikola Tesla. However, the court rejected this explanation because of the company’s misleading conduct and misuse of terms like “Power USA.”
Q8. What role did customer confusion play in this case?
Ans. A major role. The court stated that an average consumer may assume both companies were connected because they share the same name and operate in related fields like batteries and energy products.
Q9. What did the High Court’s interim order say?
Ans. The court ordered Tesla Power to completely stop using the names “Tesla,” “Tesla Power,” and “Tesla Power USA” across all platforms products, packaging, website, and advertisements until the final judgment.
Q10. Can a company use a famous brand name if it operates in a different industry?
Ans. Usually no, especially when the original brand is well-known globally. Using a famous name can unfairly benefit the new company and mislead consumers, which the law prohibits.
Q11. Why is this case important for Indian businesses?
Ans. It reinforces that:

Famous brands get strong protection in India

Misleading branding will not be tolerated

Companies must act honestly and respect trademarks

Promises made to courts must be honored

Q12. Is the case fully decided?
Ans. No. The court has passed an interim (temporary) order. The final decision will come after a complete trial. However, the interim order already sets an important precedent.
Q13. What should businesses learn from this case?
Ans.  Avoid using names identical or similar to well-known trademarks

Be transparent and truthful in branding

Do not mislead customers with foreign-sounding names

Always honor commitments made to courts or regulatory bodies

Trademarks help people recognize the real source of a product. When a company becomes famous, its name becomes valuable because people trust it. But if another company starts using the same or similar name, it can confuse the public and harm the original company. Something like this happened when Tesla Inc, the American electric car company, complained in India that a Gurugram-based company named Tesla Power was using its name without permission. The Delhi High Court looked into the issue and temporarily stopped the Indian company from using the name “Tesla.”

Background of the Trademark Dispute

Tesla Inc is a very famous American company known for electric cars, solar products, and strong battery technology. Over many years, Tesla has built an international reputation. The name “Tesla” has become a powerful symbol of innovation and high-quality products. Because of this, the company protects its brand very strongly all over the world.

Tesla Power is an Indian company in Gurugram. It mainly sells batteries, inverters, UPS systems, and water purifiers. For a long time, Tesla Power said that it was not involved in the electric vehicle business. But later, the company started showing electric scooters and EV-related items on its website. All of these were displayed under the name “Tesla Power.”

When Tesla Inc came to know about this, they filed a case in the Delhi High Court. They argued that Tesla Power was using the name “Tesla” in a dishonest way and creating confusion among customers. Tesla Inc also said that Tesla Power used phrases like “Tesla Power USA,” which could make people think the company was American or connected to Tesla Inc, even though it was not.

This raised serious concerns, and the case came before Justice Tejas Karia in the Delhi High Court.

Observations of the Delhi High Court

The court looked carefully at the arguments and decided that Tesla Power did not adopt the name honestly. The judge said that the Indian company’s explanation for using the name “Tesla” was not convincing. It looked as if the company wanted to take advantage of the huge reputation of the American Tesla brand.

The court was especially worried about customer confusion. “Tesla” is a very famous name. If another company uses the same name, many people may assume that Tesla Power is linked to Tesla Inc. Even if the products are different, the same name can easily mislead the public. The judge explained that for an average customer, brand names play a big role in making buying decisions. A name like “Tesla” automatically reminds people of the American electric car company.

Another important point was that both companies worked in similar areas. Tesla Power said it only sold normal lead-acid batteries, not electric vehicles. But the court explained that batteries are a basic and essential part of electric vehicles. In an EV, the battery is more important than anything else. Tesla Inc also sells battery-related products. This means both companies operate in connected or related fields, which increases the chance of confusion even more.

The court also pointed out that Tesla Power had earlier given a written promise to the court. In that promise, the company said it would not enter the EV market and would not promote EV-related products under the name “Tesla Power.” However, after giving this promise, the company continued to advertise electric scooters. Breaking a promise made to the court made their actions look dishonest and unreliable.

The use of the phrase “Tesla Power USA” also looked misleading. Tesla Power is an Indian company, but using a foreign-sounding name may give customers a wrong impression. This added to the court’s doubts about the company’s intentions.

Interim Order of the High Court

After considering all the facts, the Delhi High Court passed a temporary order in favour of Tesla Inc. In this order, the court told Tesla Power that it must stop using the names “Tesla,” “Tesla Power,” and “Tesla Power USA” in any form. This ban applies until the final decision of the case.

The order applies to everything: product labels, packaging, websites, social media, online advertisements, and offline promotion. Tesla Power cannot use “Tesla” anywhere.

The court also said that the earlier promise made by Tesla Power would remain in force. This means the company cannot enter the EV market or promote EV-related products while the case is ongoing.

Relevant Provisions of the Trademarks Act, 1999

The High Court’s decision is based on several important sections of the Trademarks Act, 1999. These laws protect registered trademarks and prevent others from using them unfairly.

Section 29 – Trademark Infringement

This section says that if someone uses the same or similar trademark for similar or related goods, and people may get confused, it is a case of infringement. In this case, the name used by both companies is identical. Their products are related, and customers may think both companies are connected. So, Section 29 clearly applies.

Section 29(4) – Protection of Well-Known Marks

This section protects famous trademarks even when the other company sells different goods. If a famous mark is used without justification and it harms the reputation of the original company, it is considered infringement. Tesla is a very famous global brand, so this section strongly supports Tesla Inc.

Section 11 – Prohibition of Similar Marks

This section prevents trademarks that are similar to well-known marks from being registered. It shows that Indian law protects popular trademarks very seriously.

Section 30 – Honest Use Only

This section provides some exceptions, but only when the use of the trademark is honest. The court found Tesla Power’s use dishonest, so this section does not help them.

Relevant Case Laws

Many earlier Indian court cases support the reasoning behind the Tesla judgment.

PhonePe Pvt. Ltd. vs. BharatPe

Judgment Dates: 15 April 2021 & 17 August 2022

PhonePe said BharatPe’s name sounded very similar because both end with “Pe.” Even though spelling was different, the pronunciation was almost the same. The court said that customers may get confused because both companies work in the same field (digital payments).

So, similar-sounding names in the same market can create confusion.

MakeMyTrip (India) Pvt. Ltd. vs. Makemytravel USA Inc.

Judgment Date: 5 April 2022

MakeMyTrip said that “MakeMyTravel” looked too much like its own name. Even if some letters were different, the overall structure and meaning were very close. The court agreed and said that copying the same pattern of words also counts as infringement.

Hindustan Unilever Ltd. (HUL) vs. Emami Ltd. – Glow & Handsome Dispute

Judgment Date: 28 July 2020

HUL used the name “Glow & Lovely,” and Emami started using “Glow & Handsome.” The court said that similar naming patterns can give customers the wrong idea that the products come from the same company. Even if the products are different, the naming style can mislead buyers.

Dabur India Ltd. vs. Emami Ltd.

Judgment Date: 24 December 2021

Dabur argued that Emami copied the colour and design of its chyawanprash bottle. The court agreed and stopped Emami from using the confusingly similar packaging. This case shows that even packaging similarity can cause customer confusion.

MakeMyTrip vs. Orbit Corporate & Leisure Travels

Judgment Date: 15 December 2022

Orbit Travels used advertising materials that looked very similar to MakeMyTrip’s branding. The court said that copying any part of a famous brand can harm its reputation. So, Orbit was stopped from using similar marks.

Why Tesla Power’s Arguments Failed

Tesla Power tried to argue that it used the name “Tesla” because it was inspired by the scientist Nikola Tesla. But the court did not accept this because of the company’s behaviour. If the name was chosen honestly, there was no need to use phrases like “Power USA.” Also, the company did not follow its earlier promise to the court. This made it look like Tesla Power was not being truthful.

Tesla Power also said that its products were different from Tesla Inc. But the court explained that batteries and EV technology are connected. Tesla Inc also makes batteries and energy-related products. Because the goods were related, confusion was even more likely.

Importance of This Judgment

This judgment is important for several reasons.

It protects famous international brands from misuse in India. Companies like Tesla need confidence that their name will be safe in the Indian market.

It protects customers from being misled. If someone buys a product thinking it belongs to Tesla Inc, they may be misled if it actually belongs to another company.

It stops unfair competition. A company should not take advantage of a famous name without permission.

It also shows that honesty is important in business. Companies should not try to copy famous names or create false impressions.

Finally, the judgment shows that promises made to the court must be respected. Breaking such promises weakens a company’s credibility.

Final Word

The Delhi High Court’s decision to stop Tesla Power from using the name “Tesla” is an important step in protecting trademark rights in India. The court found that the Indian company’s use of the name was not honest and could confuse customers. Tesla is a globally famous brand, and such names deserve strong protection.

By applying the relevant sections of the Trademarks Act and relying on important case laws, the court protected both Tesla Inc and the public interest. The case is still pending, but the interim order already sets a strong example for trademark safety and fair business practices.

Frequently Asked Questions (FAQs)

Q1. What was the main issue in the Tesla vs. Tesla Power case?

Ans. The main issue was that Tesla Power, an Indian company, was using the name “Tesla,” which is identical to the globally famous brand owned by Tesla Inc. This raised concerns of trademark infringement and customer confusion.

Q2. Why did the Delhi High Court stop Tesla Power from using the name “Tesla”?

Ans. The court found that Tesla Power’s use of the name was dishonest, misleading, and likely to confuse customers into believing it was connected to Tesla Inc. The company even promoted EV-related products despite promising not to do so, making the court doubt its intentions.

Q3. Does trademark infringement apply even if the products are different?

Ans. Yes. Under Section 29(4) of the Trademarks Act, 1999, even if the goods are different, using a famous or well-known mark without justification can still amount to infringement if it harms the brand’s reputation.

Q4. What is a “well-known trademark”?

Ans. A well-known trademark is one that is recognized by the public across regions and markets. “Tesla” is considered a globally well-known mark because of its reputation in electric vehicles and energy products.

Q5. How did Tesla Power mislead customers?

Ans. Tesla Power used phrases like “Tesla Power USA”, advertised EV-related products, and used branding that could make customers believe it was connected to Tesla Inc, even though it is an Indian company with no such relationship.

Q6. What provisions of the Trademarks Act were applied in this case?

Ans. Key provisions included:

Section 29: Trademark infringement
Section 29(4): Protection for well-known marks
Section 11: Prohibition of similar marks
Section 30: Honest use exception (not applicable due to dishonest conduct)

Q7. Did Tesla Power claim any justification for using the name?

Ans. Yes, Tesla Power claimed it used the name to honor scientist Nikola Tesla. However, the court rejected this explanation because of the company’s misleading conduct and misuse of terms like “Power USA.”

Q8. What role did customer confusion play in this case?

Ans. A major role. The court stated that an average consumer may assume both companies were connected because they share the same name and operate in related fields like batteries and energy products.

Q9. What did the High Court’s interim order say?

Ans. The court ordered Tesla Power to completely stop using the names “Tesla,” “Tesla Power,” and “Tesla Power USA” across all platforms products, packaging, website, and advertisements until the final judgment.

Q10. Can a company use a famous brand name if it operates in a different industry?

Ans. Usually no, especially when the original brand is well-known globally. Using a famous name can unfairly benefit the new company and mislead consumers, which the law prohibits.

Q11. Why is this case important for Indian businesses?

Ans. It reinforces that:

Famous brands get strong protection in India
Misleading branding will not be tolerated
Companies must act honestly and respect trademarks
Promises made to courts must be honored

Q12. Is the case fully decided?

Ans. No. The court has passed an interim (temporary) order. The final decision will come after a complete trial. However, the interim order already sets an important precedent.

Q13. What should businesses learn from this case?

Ans. Avoid using names identical or similar to well-known trademarks