Delhi HC grants interim injunction to Tesla Inc., bars Indian firm from using trademark

The Delhi High Court has granted an interim injunction in favour of US-based Tesla Inc., restraining Indian firm Tesla Power India from using the trademarks ‘Tesla Power’ or ‘Tesla Power USA’ in any form, including for the manufacture of electric vehicles, according to PTI.

In its order, the court recorded a statement made on behalf of the defendants that they had no intention of manufacturing electric vehicles and would not market EVs of other companies under the disputed trademarks or any brand deceptively similar. They also undertook not to use the word ‘Tesla’ in any capacity until the suit is finally decided.

The direction extends to all forms of usage, including solicitation, services, advertising—both online and offline—and the sale or trade of lead acid batteries for automobiles, inverters and UPS systems.

Justice Tejas Karia observed that Tesla Inc., led by CEO Elon Musk, had made out a prima facie case for interim relief, having demonstrated prior use, goodwill and substantial global reputation, as per the PTI report.

“Injunction is a relief in equity, and in view of the discussion, the same is in favour of the plaintiff and against the defendants,” the court said in its 52-page ruling. It added that the balance of convenience lay with Tesla Inc., and that the company would face grave prejudice if relief was denied.

The order, issued on 24 November, was uploaded on the court’s website on the night of 26 November.

Tesla Inc. had sought a permanent injunction to prevent Tesla Power India from using the contested trademarks, related logos and associated domain names. The American company argued that the Indian firm’s marks prominently featured the word ‘TESLA’, creating a likelihood of confusion among consumers, relying on its prior registrations and extensive global use of the brand.

The court agreed that the Indian company appeared to be exploiting Tesla Inc.’s reputation, particularly through the adoption of the name ‘Tesla Power USA’. This, it noted, seemed intended “to mislead customers into believing that the technology that the defendants are using originated in the USA and that they are connected with the plaintiff, which is based in the USA.”