Recently, a long-running culinary brand battle took a decisive turn when a Delhi Court intervened in a dispute between two popular South Indian eateries over the use of the name “Carnatic.” What started as a regional identity clash between Delhi’s Carnatic Cafe and a Bengaluru-based restaurant soon evolved into a significant case of trademark protection and brand integrity.

The dispute traces back to December 2018, when Delhi’s popular South Indian restaurant chain Carnatic Cafe discovered that a Bengaluru-based firm, Lemonpepper Hospitality Pvt. Ltd., had opened an outlet under the name “Carnatic.” Claiming this was a deliberate attempt to ride on its goodwill and confuse customers, the Delhi-based owner moved the court in April 2019, filing a trademark infringement suit.

Carnatic Cafe argued that it had been using the mark Carnatic Cafe” long before the Bengaluru outlet’s establishment and had legally registered the trademark. The Plaintiff contended that the defendants’ use of an identical name for restaurant services, without permission or licence, amounted to unfair competition, misrepresentation, and an attempt to exploit the established reputation of the brand.

The Plaintiff maintained that Lemonpepper Hospitality was fully aware of the existing rights associated with the Carnatic Cafe mark, but still chose to adopt the name “Carnatic” with mala fide intent. The firm’s use of the name, logo, and domain (www.carnaticrestaurant.com) was alleged to be deceptively similar to the Plaintiff’s identity. The Defendants, however, did not submit a written statement or counter their claims within the prescribed period, further weakening their position.

District Judge of the Saket Court observed that Carnatic Cafe had convincingly established its statutory rights as a registered proprietor, along with evidence of continuous use and the goodwill attached to its mark. The judge held that the defendants’ unauthorised use of the identical mark constituted trademark infringement, passing off, and an unfair trade practice.

The court also noted that the use of “Carnatic” by the Bengaluru firm was likely to mislead customers into believing that both eateries were connected or affiliated, thereby harming the Plaintiff’s reputation.

Bringing the six-year legal tussle to a close, the court permanently restrained Lemonpepper Hospitality, its directors, employees, and agents from using the mark Carnatic or any similar name, logo, or domain in any restaurant-related activity. The company was also directed to transfer its domain name to Carnatic Cafe within one month.

The court awarded Rs.50,000 as compensatory and deterrent damages and Rs.10,000 towards litigation costs, recognising the loss of goodwill and reputation suffered by the Delhi-based brand.

 

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Jagriti Sharma