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Tesla files trademark infringement case in Delhi High Court
Elon Musk's electric vehicle-maker has taken a Gurgaon-based battery seller called Tesla Power India to court over the use of its name, Tesla
Electric vehicle (EV) giant Tesla Inc. has filed a lawsuit in the Delhi High Court against Gurgaon-based battery seller Tesla Power India Pvt. Ltd for infringing on its trademark, 'Tesla'.
The Delhi High Court issued a notice on Thursday in response to Tesla Inc.'s plea and restrained Tesla Power from publishing any promotional advertisements featuring EV products with a similar Tesla trademark.
The court also instructed Tesla Power to file its replies in response to the allegations and adjourned the case until 22 July.
During the hearing, Tesla Inc. argued that Tesla Power's use of the trademark in India was causing confusion among consumers and potentially harming its business interests. It claimed that Tesla Power not only shares a similar trademark name but also advertises as an EV company in newspapers.
Also read: Tesla’s India entry on ice: Musk yet to firm up plans for India
Tesla Inc. stated that consumers are mistakenly purchasing Tesla Power batteries assuming they are associated with Tesla Inc. and registering complaints with them.
Tesla Inc. counsel sought urgent action against Tesla Power's use of the Tesla trademark, citing potential damage to their brand and ongoing business activities in India.
However, the court criticized Tesla Inc. saying it had not shown any urgency, especially considering that it has been in communication with Tesla Power since 2020 over the trademark dispute.
According to the court, Tesla Power has been operating for four years and deserves the opportunity to present its case; they cannot be shut down abruptly.
In response, Tesla Power argued that it is not manufacturing EV batteries but rather selling lead acid batteries used in conventional vehicles and inverters.
The company representative present in court stated that it has no plans to enter the EV market and 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 the company representative, Tesla Power has been in business since 2020 and has 1 million customers in India.
Also read: Elon Musk shows why India can’t take China-plus-one narrative for granted
Recently, Tesla chief executive eElon Musk postponed his much-anticipated visit to India citing prior commitments to Tesla.
Media reports suggest that Tesla is considering a significant investment of nearly $30 billion in India over the next five years, including the establishment of a manufacturing plant and battery ecosystem.
On 15 March, the Indian government introduced a new electric vehicle (EV) policy. This move is expected to help Tesla get started in India. As part of this policy, the government will lower taxes on certain electric vehicles.
But there's a condition: companies must promise to invest at least ₹4150 crore (about $500 million) and build a manufacturing facility in India. They'll have three years to set up this facility, and at least 25% of the parts used must be from India.
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Business NewsCompaniesTesla files trademark infringement case in Delhi High Court
First Published:2 May 2024, 04:32 PM IST
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