Moti Mahal Delux Management Services (P) Ltd. v. Ex-Franchisee

"Protecting Brand Identity Beyond Franchise Agreements"

Description :

Moti Mahal, a popular restaurant chain, successfully obtained an interim injunction against its ex-franchisee for trademark and copyright infringement. The ex-franchisee continued to use Moti Mahal's trademarks and artistic works despite the termination of their franchise agreement.

The Delhi High Court has ruled in favor of Moti Mahal Delux Management Services Pvt. Ltd. against its ex-franchisee, SRMJ Business Promoters Pvt. Ltd., for trademark and copyright infringement. Here's a breakdown of the case.

Case Background :

Moti Mahal, a popular restaurant chain, had a franchise agreement with SRMJ Business Promoters Pvt. Ltd. that ended on October 5, 2022. Despite the termination, the ex-franchisee continued to use Moti Mahal's trademarks, including "MOTI MAHAL" and "MOTI MAHAL DELUX TANDOORI TRAIL".

Allegations :

Moti Mahal alleged that the ex-franchisee's actions were an attempt to mislead consumers and ride on Moti Mahal's goodwill and reputation. The court noted that the defendant's malafides were evident from their continued use of similar marks.

Court Ruling :

Justice Mini Pushkarna granted an interim injunction in favor of Moti Mahal, restraining the ex-franchisee from using Moti Mahal's registered trademarks. The court also directed the defendant to remove references to the impugned marks from their premises, social media, and third-party websites.

Key Findings :

- Trademark Infringement : The court found that the ex-franchisee's use of similar marks was likely to cause confusion among consumers.

- Copyright Infringement : Moti Mahal's labels and artistic work were also infringed by the ex-franchisee.

- Goodwill and Reputation : The court recognized Moti Mahal's immense goodwill and reputation in the market.

The court's decision highlights the importance of protecting intellectual property rights, particularly in the context of franchise agreements. Moti Mahal's success in this case demonstrates the effectiveness of legal recourse in safeguarding brand identity and reputation.