In a major development in the trademark battle over the “Kirloskar” brand, the Bombay High Court has upheld Kirloskar Proprietary Limited’s ( KPL) rights as the registered proprietor of the mark, rejecting the claims of exclusive and perpetual ownership made by Sanjay Kirloskar-led Kirloskar Brothers Limited (KBL).
The HC stayed the order of the Pune District Court that had temporarily restrained KPL from creating licensing rights, reaffirming that KPL has been the custodian of the “Kirloskar” trademarks for over 50 years and is empowered to grant licenses to its member companies as per its Articles of Association.
“There is no material to support the contention of Kirloskar Brothers that it continued to be beneficial owner of the Kirloskar trademarks even after the assignment of the marks. The assignment and user agreements state to the contrary,” a division bench of Chief Justice and Justice M.S. Karnik ruled.
The court noted that the user agreements clearly state that the goodwill in the “Kirloskar” marks vests with KPL, and that the permitted user (KBL) derives no ownership rights from usage. It further observed that there was no justification at this interim stage to restrain KPL from granting licenses, maintaining that the arrangement has been in place for the past five decades.
The HC agreed with KPL’s contention that the Pune court had erred in altering the status quo by restricting KPL’s licensing rights. It also rejected documents submitted by KBL claiming perpetual ownership, saying they did not establish an exclusive or interminable right.
The matter has been posted for further hearing on August 11.
The HC stayed the order of the Pune District Court that had temporarily restrained KPL from creating licensing rights, reaffirming that KPL has been the custodian of the “Kirloskar” trademarks for over 50 years and is empowered to grant licenses to its member companies as per its Articles of Association.
“There is no material to support the contention of Kirloskar Brothers that it continued to be beneficial owner of the Kirloskar trademarks even after the assignment of the marks. The assignment and user agreements state to the contrary,” a division bench of Chief Justice and Justice M.S. Karnik ruled.
The court noted that the user agreements clearly state that the goodwill in the “Kirloskar” marks vests with KPL, and that the permitted user (KBL) derives no ownership rights from usage. It further observed that there was no justification at this interim stage to restrain KPL from granting licenses, maintaining that the arrangement has been in place for the past five decades.
The HC agreed with KPL’s contention that the Pune court had erred in altering the status quo by restricting KPL’s licensing rights. It also rejected documents submitted by KBL claiming perpetual ownership, saying they did not establish an exclusive or interminable right.
The matter has been posted for further hearing on August 11.
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