RED BULL AG v. ROHIDAS POPAT KAPADNIS & ANR.
The legal case of Red Bull AG vs. Rohidas Popat Kapadnis & Anr., CS(COMM) 512/2023 & I.A. 20372/2023, revolves around the unauthorized use of the blue and silver colour combination by the defendant in their energy drink product named 'SEVEN HOURS.' The plaintiff, Red Bull, claims exclusive rights to this colour combination and has obtained various trademark registrations. The court, after initially granting an ex-parte injunction, further considered the defendant's application. The recent judgment allows the defendant to fill and sell their unfilled cans with certain conditions, imposing a substantial financial penalty. The court restricts the defendant from selling further products under infringing marks and withdraws their trademark applications.
RED BULL AG v. ROHIDAS POPAT KAPADNIS & ANR.
CS(COMM) 512/2023 & I.A. 20372/2023
Decided on: 16/10/2023
Brief Facts:
The ongoing legal dispute centres around the use of the blue and silver colour combination by the defendant in their energy drink product, which is identical to the plaintiff's drink. The defendant has been marketing and manufacturing their product under the name 'SEVEN HOURS'. The plaintiff's counsel has argued that the blue and silver colour combination for energy drinks has been protected by courts in various orders in the past. The plaintiff has registered marks such as 'RED BULL', 'BULL', the double BULL device, the single BULL device, and the blue and silver colour combination in a trapezial design. The plaintiff claims that the blue and silver colour combination in a distinctive layout and arrangement is exclusively associated with them.
Previously, an ex parte injunction was granted on 1st August 2023, and a Local Commissioner was appointed, directing the seizure of the defendant's products. The defendant was also ordered to deposit Rs. 3 Lakhs to the Registrar general of the court.
The defendants have now filed an application for further consideration. They argue that unfilled cans are also quite expensive and that they have been selling their products since 2021. The defendants contend that they have invested a significant amount of money in the production and marketing of their energy drink, and a sudden seizure of their products would cause them irreparable harm. They also argue that the blue and silver colour combination is not unique to the plaintiff and has been used by various other companies in the past. The defendant's counsel, has further argued that the plaintiff's claims are baseless and that the defendant has not violated any of the plaintiff's rights.
The court is currently examining the defendant's application and will take all the arguments presented into consideration before arriving at a decision.
Court’s Analysis and Judgement:
In a recent court case, the defendant was found to have been using cans for the past two years without proper permission. However, the court granted them permission to fill the unfilled cans and sell them during the usual course of their business, provided they pay an additional Rs.10 Lakhs to the plaintiff for the loss they had incurred, in addition to the previous Rs.3 Lakhs that were already paid.
The court also ordered that the defendants cannot sell any further products under the infringing marks and labels, except for the filled and unfilled cans that were seized by the Local Commissioner. The unfilled cans that were seized shall be released in favour of the defendants, which were given to them on superdari basis, in the presence of a representative of the plaintiff.
Furthermore, the court has withdrawn the defendant's trademark applications bearing numbers 5683132 and 5598032. The Registrar of Trademarks has been directed to reflect the same on its website within four weeks from the receipt of the order.
Lesson Learnt:
The recent court judgment resolved a legal dispute between a plaintiff and a defendant regarding the use of blue and silver colour combinations in the energy drink market. The court acknowledged the plaintiff's exclusive rights over the said colour combination and imposed a significant financial penalty of Rs. 10 Lakhs on the defendant for unauthorized use of their intellectual property. The judgment prohibits the defendant from selling any further products under the infringing marks and labels, except for the seized filled and unfilled cans. The court also withdrew the defendant's trademark applications and directed the Registrar of Trademarks to reflect this decision on its website. Overall, the court aimed to balance the interests of both parties by allowing the defendant to continue their business with certain restrictions and compensation to the plaintiff for their incurred losses.
Conclusion:
The recent court judgment in Red Bull AG vs. Rohidas Popat Kapadnis & Anr. addresses a trademark dispute involving the use of a specific colour combination in the energy drink market. The court acknowledges the plaintiff's exclusive rights to the colour combination and imposes a significant financial penalty on the defendant for unauthorized use. While allowing the defendant to fill and sell their seized unfilled cans, the judgment places restrictions on further sales under infringing marks. The withdrawal of trademark applications further solidifies the protection of the plaintiff's intellectual property. The court's decision aims to strike a balance between the interests of both parties, ensuring compensation for the plaintiff and regulating the defendant's future activities.
