Delhi High Court to hear Tesla vs Tesla Power case next on 28 May

New Delhi: The Delhi High Court will hear Tesla Inc's trademark infringement case against Gurugram-based Tesla Power India Pvt Ltd next on 28 May. The case was initially slated to be heard by Justice Anish Dayal on Wednesday, but was deferred because of time constraints.

On 2 May, the court issued a notice in response to Tesla Inc's plea and restrained Tesla Power from publishing any advertisements featuring electric-vehicle (EV) products with a trademark similar to Tesla's. It also instructed Tesla Power reply to the allegations.

The American EV giant filed the lawsuit to prevent Telsa Power from using the "Tesla" trademark. It argued that Tesla Power's use of the trademark in India was causing confusion among consumers and potentially harming its business interests. 

It claimed Tesla Power not only had a similar trademark but also advertised itself as an EV company in newspapers. It said consumers were mistakenly buying Tesla Power batteries, assuming they are associated with the US company, and sending complaint to Tesla Inc.

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Legal experts earlier told Mint that the case could have a significant impact on similar cases in the future as it could establish precedents in intellectual property (IP) law related to the rapidly growing EV industry.

A verdict in favour of Tesla Inc could lead to stricter enforcement of IP rights, which would affect licensing negotiations and technology co-referencing businesses in the industry.

Tesla Power 'deserves a hearing'

The court also criticised Tesla Inc, saying that it had not shown any urgency, considering that it has been communicating with Tesla Power about the trademark dispute since 2020. The court said Tesla Power had been operating for four years and deserved an opportunity to present its case. 

Also read: How Tesla's first India lawsuit will affect EV trademark battles

Tesla Power argued that it was not manufacturing EV batteries, but rather selling lead-acid batteries used in conventional vehicles and inverters. At the previous hearing, its chairman Kavinder Khurana personally pleaded in court that the company had no plans to enter the EV market. 

He clarified that the advertisement featuring the Tesla trademark was related to another company, e-Ashwa, with whom Tesla Power has a strategic partnership to sell branded products. According to Khurana, Tesla Power has been in business since 2020 and has a million customers in India.