Adidas AG vs. Keshav H. Tulsiani & Ors.

“Unauthorized use of ‘ADIDAS’ name on textiles creates real likelihood of confusion and dilutes brand identity.”

 Short Description

Adidas AG filed suit against a textile business using the name ADIDAS. The Delhi High Court held that this use infringed Adidas's trademark, caused consumer confusion, and diluted the distinctiveness of its world-famous brand.

Facts

• Defendant(s) operated textile businesses under the name "ADIDAS," claiming personal inspiration from a sister named "Adi," not intending infringement.

• Adidas AG has used the mark since 1949 and is globally recognized.

• Adidas sued for permanent injunction, damages, and costs.

Findings

• The court found the adoption was in bad faith, lacked credible justification, and failed basic due diligence.

• The similarity of names, goods, and commercial overlap satisfied Section 29(2)(a) TMA (likelihood of confusion).

• The distinctiveness of the invented "ADIDAS" mark made unauthorized use particularly deleterious.

Suggestion

• Unauthorized use of a well-known, coined mark like “ADIDAS” is not acceptable, even with plausible personal explanations.

• Courts must protect brand reputation from dilution and consumer deception.

 Judgement

• Date: 19 July 2024 (Decision published 24 July 2024)

• Permanent injunction granted.

• Defendant ordered to cease using "ADIDAS" or similar marks.

• Rs 14.22 lakh awarded: Rs 3 lakh nominal damages + Rs 11.22 lakh litigation costs