The Bombay High Court has now stepped into the legal dispute between the international food joint Burger King and a local eatery in Pune with the same name. The Pune Court had dismissed the suit against the Pune based eatery but The Bombay High Court has now put a temporary stop on that decision.
Background of the case
The conflict began when Burger King Corporation from the U.S., who started in India in 2014, found out a Pune restaurant had used the name "Burger King" since 2008. The company decided to pursue legal action against Anahita and Shapoor Irani, who own "Burger King" outlets in Camp and Koregaon Park areas of Pune. Burger King alleged that the Pune restaurant's use of its trademarked name was causing enduring harm to its brand's reputation and requested a permanent injunction to prevent the local establishment from using the name.
However, a surprising turn of events occurred on July 16, 2024, when Judge Sunil Vedpathak of Pune Court ruled in favor of the Pune restaurant. The court found that the local business had been using the name before the U.S. company registered the trademark in India.
The judge observed:
"With respect to relief of perpetual injunction is concerned, admittedly the plaintiff has started to provide services through restaurant under its trademark Burger King in India particularly in the year 2014 whereas since 1991-92 defendants are using the trademark Burger King to provide restaurant services. Even the plaintiff has not placed on record the registration certificate about registration of its trademark in India under class 42 prior to 1991-92. Admittedly plaintiff has registered its trade mark Burger King under class 42 pertaining to restaurant services is of 06.10.2006. So, considering the fact that defendants are prior user of trademark in question, I am of the opinion that the plaintiff has no cause of action to seek relief of perpetual injunction," the Court had ruled.
The judgment further emphasized that the Pune establishment had been conducting their business for a long time without interruption under the "Burger King" name and were, therefore, the honest and prior users of the name.
Following the Pune court's decision, Burger King Corporation approached the Bombay High Court seeking an interim stay on the order. On August 26, 2024, a Bench comprising Justices AS Chandurkar and Rajesh Patil heard the matter and granted the stay until the next hearing, scheduled for September 6. During the proceedings, Burger King's counsel argued that there had been an injunction order in their favor since January 28, 2012, and that the Pune restaurant had begun using the "Burger King" trademark only after the July 16 decision.
The Court, upon reviewing the injunction order, decided that a hearing was necessary to consider the plea for a stay. Addressing the objections raised by the Pune-based restaurant's counsel regarding the maintainability of the appeal, the Court remarked:
"…if you don't agree to the appeal, we can give a date. Meanwhile the ad interim relief may continue (in favor of the appellant)," thereby granting interim relief to the U.S. corporation.
Conclusion
The interim ruling from the Bombay High Court has given Burger King Corporation temporary respite by permitting it to stay in its current position until the next court session. The situation showcases the intricacies of trademark regulations, especially when several parties assert ownership of a common name in the same legal area. The ongoing legal dispute will probably have important consequences for both parties and trademark conflicts in India in general.
TAGS: Bombay High Court Burger King trademark dispute interim relief Pune restaurant trademark infringement prior user injunction order Anahita and Shapoor Irani brand reputation legal battle trademark law in India.
