Nestlé vs Maggisun: HC closes Nestlé trademark suit, orders defendant to abide by Settlement terms

In a development that emphasises the protective reach of trademark rights, the Delhi High Court has formally closed a long-pending trademark infringement suit filed by Nestlé SA against Shankeshwar Utensils & Appliances Private Limited, the manufacturer of utensils marketed under the name “Maggisun.” The closure follows an amicable settlement between the parties, resolving a dispute that had persisted since 2018.

The litigation centered on Nestlé’s claim that the defendant’s branding of utensils as “Maggisun” constituted an infringement of the company’s registered trademark “MAGGI,” the household instant noodle brand. According to the Court, Shankeshwar Utensils & Appliances has agreed in the settlement that it will not manufacture, sell, or advertise products under the mark “Maggisun” or any brand confusingly similar to “MAGGI.”

“The Suit is decreed in terms of the Settlement arrived at between the Parties as recorded above. Let the Decree Sheet be drawn up accordingly. The Parties are directed to be bound by the terms of the Settlement,” the Court previously ordered. The Court further noted, “The Suit and the pending Application(s) stand disposed of.”

As part of the undertaking, the defendant acknowledged Nestlé as the proprietor of the trademark MAGGI and undertook that it would “not manufacture, sell, offer for sale, advertise, directly or indirectly deal in pressure cookers or any goods/services under the trade mark MAGGISUN or any other trade mark as may be identical to or similar to the Plaintiffs’ trade mark MAGGI, and further undertakes not to advertise MAGGISUN, MAGGI or any other similar trade mark on any media including print, electronic, social media, or on ecommerce platforms in any manner whatsoever now and in future.”

Additionally, the company has committed to destroying all pressure cookers, stickers, and labels bearing the name Maggisun and submitting photographic evidence of compliance to Nestlé within two weeks. The settlement also mandates the cancellation of any trademark registration pertaining to the name “Maggisun.” In turn, Nestlé has agreed to refrain from pursuing the remaining prayers of the suit if the decree is executed in accordance with the settlement terms.

Justice Tejas Karia, overseeing the matter, formally recorded the settlement and directed the decree sheet to be drawn up, bringing closure to the seven-year-long dispute.

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