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Ahmedabad court rules in favour of Volvo in 30-year trademark battle
An Ahmedabad court barred a local firm from using the Volvo trademark on towels and finance ventures, siding with Swedish auto giant AB Volvo in a three-decade-old case, reinforcing the brand’s cross-sector protection and awarding nominal damages.
The Swedish auto giant AB Volvo, which first registered the mark in India in the mid-1970s across multiple product categories, including garments and towels, had accused the Gujarat-based Volvo Terry Industries Ltd and its group firm Volvo Finance Ltd of “free-riding” on its global brand reputation.
Ahmedabad court has barred a local towel manufacturer from using the “Volvo” trademark, bringing closure to a dispute that has dragged on for more than three decades.
The Swedish auto-maker AB Volvo, which first registered the mark in India in the mid-1970s across multiple product categories, including garments and towels, had accused the Gujarat-based Volvo Terry Industries Ltd and its group firm Volvo Finance Ltd of “free-riding” on its global brand reputation.
The case, originally filed in 1995, culminated with the court ruling that the defendants “deliberately adopted” the Volvo name to exploit the goodwill of the iconic auto major, established in 1927. The firms were restrained from using the mark in both their towel business and their financial services arm.
The court also ordered the local company to pay Rs 1 lakh in nominal damages to AB Volvo. Despite repeated opportunities, the defendants did not cross-examine any of the witnesses presented by the automaker.
AB Volvo had argued that its trademark protection spanned beyond vehicles, covering a wide range of lifestyle products. The court upheld this claim, reinforcing that trademark dilution and misappropriation extend across categories if a brand enjoys well-known status.
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