Recently, the Delhi High Court decided to proceed with Tesla Inc.'s trademark dispute against Tesla Power India, noting that mediation efforts had failed. The Court emphasized the significance of protecting intellectual property rights, given the allegations of trademark infringement.
Tesla Inc. approached the Delhi High Court in May 2024, challenging the use of the 'TESLA' trademark by Tesla Power India. The dispute arose after the Indian company advertised its plans to enter the electric vehicle (EV) market, leading Tesla Inc. to claim trademark infringement. The petitioner contended that Tesla Power India had carried advertisements in newspapers promoting their entry into the EV sector despite prior objections.
Tesla Inc. argued that it had issued a cease-and-desist notice to Tesla Power India and its associate Tesla Power USA in April 2022, followed by multiple communications until March 2023. However, the defendants allegedly continued using the 'TESLA' trademark in marketing and advertisements. On the initial hearing date, the proprietor of Tesla Power India appeared before the Court and assured that they had no intention of manufacturing EVs or marketing other entities’ EVs under the ‘TESLA POWER USA’ name or any similar brand.
Subsequently, Tesla Inc. alleged that Tesla Power India had begun manufacturing e-scooters under the Tesla brand name, contradicting its earlier undertaking. In response, the Court, on May 28 of the previous year, directed the defendants to file an affidavit disclosing details regarding the EVs sold by them, including dealer names, launch dates, sales data, and current stock availability. The Court instructed that the affidavit be placed on record before the next hearing date.
Following this order, the case was referred to mediation. However, as mediation did not yield a resolution, Tesla Inc. sought an early hearing, though it later withdrew the request. Nonetheless, the Court acknowledged the failure of mediation and decided to hear the matter on April 15.
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