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SC grants temporary relief to Pune eatery in 'Burger King' trademark dispute
The stay allows the Pune eatery to continue operating under the brand until the High Court delivers its final verdict.
The dispute revolves around Burger King Corporation, which entered the Indian market in 2014, and a Pune-based restaurant that has been using the 'Burger King' name since 2008.
The Supreme Court on Friday stayed the Bombay High Court's recent order that had restrained a Pune-based restaurant from using the name 'Burger King' in a trademark dispute with the global fast-food giant Burger King Corporation, reports Bar & Bench.
The apex court's stay means that the Pune eatery can continue to operate under the name until the Bombay High Court decides on the matter.
A Bench of Justices BV Nagarathna and Satish Chandra Sharma ruled, "The impugned order shall remain stayed. However, the Bombay High Court can continue to hear the appeal."
The legal battle between the US fast-food major and the Pune-based restaurant dates back several years. Burger King Corporation entered the Indian market in 2014 but claimed to have registered the trademark in India as early as 1979, the report added.
However, the Pune restaurant has been using the 'Burger King' name since 2008, and its legal representatives argued that it had been in operation since 1992, well before the US brand entered the country.
The dispute first played out in a Pune court, which in July 2024 ruled in favour of the local restaurant. The court dismissed Burger King Corporation's suit for trademark infringement, recognizing the Pune eatery as a "prior and honest user" of the name.
The court also noticed that while Burger King Corporation had trademarked the name for restaurant services in India in 2006, the local joint had already been using it for years.
Dissatisfied with this ruling, Burger King Corporation appealed to the Bombay High Court, which initially ruled in its favour and restrained the Pune restaurant from using the name.
Challenging the Bombay High Court’s order, the Pune eatery’s legal team argued that the US corporation was essentially ‘squatting’ on the name, given that its initial trademark registration in India was for paper products, not restaurant services. They contended that staying the trial court’s decree would create a legal disadvantage for the smaller business, as appeals take significant time to resolve.
Advocate Raunaq Kamath, representing Burger King Corporation, countered that the appeal was progressing quickly and that having another restaurant with the same name could confuse customers.
However, the Supreme Court took a balanced approach, granting interim relief to the Pune-based joint while the matter remains under judicial consideration.
The Court observed that the local restaurant operated only two outlets in Pune, whereas Burger King is a global brand with multiple locations. The judges also noted that an interim stay on the trial court’s decision could have a disproportionate impact on the smaller business
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