Tesla Inc., a multinational EV and battery manufacturer using 'TESLA' mark since 2003 with Indian registrations from 2013, filed suit in 2024 against Tesla Power India Pvt Ltd & Ors for trademark infringement and passing off, alleging defendants' dishonest use of 'TESLA POWER USA' since around 2020 for lead acid batteries, inverters, UPS and water purifiers caused confusion; defendants responded to 2022 C&D denying similarity and claiming inspiration from Nikola Tesla.
Court recorded defendants' May 2024 undertaking not to deal in EVs; after arguments, the Delhi High Court held plaintiff proved prior use, trans-border reputation spilling to India, dishonest adoption by defendants, triple identity leading to inevitable confusion, and granted interim injunction on 24.11.2025 restraining defendants from using impugned marks for batteries, automobiles, inverters, UPS, and bound them to no EV activities.
Mere delay in filing suit is no ground to deny injunction if adoption is dishonest (Midas Hygiene Industries P. Ltd. v. Sudhir Bhatia, (2004) 3 SCC 90; Hindustan Pencils Private Limited v. India Stationery Products Co., 1989 SCC OnLine Del 34, Para 26).
Trans-border reputation protects a mark in India even without local sales if spillover goodwill is established through media, website access, and awards (Toyota Jidosha Kabushiki Kaisha v. Prius Auto Industries Ltd., (2018) 2 SCC 1, Para 39).
Initial interest confusion at pre-purchase stage suffices for infringement under Section 29 of Trade Marks Act, 1999 (Under Armour Inc v. Anish Agarwal, 2025 SCC OnLine Del 3784, Para 22).
Party seeking registration cannot later claim the mark is generic or common to trade, as it amounts to approbation and reprobation (Automatic Electric Limited v. R.K. Dhawan, 1999 SCC OnLine Del 27; Indian Hotels Company Ltd. v. Jiva Institute of Vedic Science & Culture, 2008 SCC OnLine Del 1758, Para 31).
Triple identity in marks, goods, and trade channels warrants interim injunction to prevent confusion (Para 44).
Case Title: Tesla Inc. Vs. Tesla Power India Private Limited :24 November 2025:CS(COMM) 353/2024 :2025:DHC:10367: Hon’ble Mr. Justice Tejas Karia
[Readers are advised not to treat this as substitute for legal advise as it may contain errors in perception, interpretation, and presentation]
[Written By: Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi]
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