Delhi High Court has referred a trademark infringement case between Tesla Inc and Tesla Power to mediation after both companies agreed to attempt to settle their dispute through this process.
A senior mediator from the Delhi High Court Mediation and Conciliation Centre will begin addressing the matter starting July 18. If the mediation is unsuccessful, a bench of the court will hear the case on September 18, as per reports.
Chander Lall, senior lawyer for Tesla Inc, informed the court that mediation would likely be ineffective because Tesla Power would not relinquish its brand.
“Mediation will not work when it comes to their brand—they are not going to give it up,” Lall stated.
In response, lawyer J. Sai Deepak, representing Tesla Power said, “We are open to mediation.”
Tesla Inc, co-founded by Elon Musk, filed a lawsuit against Tesla Power India on May 2. The lawsuit alleges that the Gurugram-based company infringed on Tesla Inc.’s trademark and misled consumers by suggesting an affiliation with its electric vehicles (EVs). Tesla Inc. claimed that this has led to customer confusion and potential harm to its brand reputation, particularly significant as it seeks to establish a presence in the Indian market.
Lall reiterated that Tesla Power was not complying with the court’s orders and continued to sell e-scooters on IndiaMart. He also mentioned that he had received personal calls from individuals accusing Tesla Power of cheating.
“They say they have been charged lakhs of rupees and then abandoned,” Lall mentioned.
According to Deepak, the trademark “Tesla” is not unique, as there are numerous companies and registrations with this name in India, Taiwan, and other countries.
“Therefore, for someone to come out and say that because of Elon Musk, we are the only ones who are entitled to claim Tesla and a monopoly over it, frankly speaking, doesn’t fly,” he stated.
Tesla Power notified the court on May 30 that it had instructed its partners and vendors to eliminate the Tesla logo from their electric scooters in adherence to a May 2 Delhi High Court order, which bars the sale and promotion of items featuring the Tesla trademark. Tesla Power affirmed that it did not plan to market its electric scooters under the Tesla brand.
The Indian company stated that 699 e-scooters branded with the Tesla trademark have been sold through its dealers and partners. The majority of these sales were facilitated by Tesla Power’s partner company, e-Ashwa.
The court has directed Tesla Power to take measures to comply with its orders and to refrain from all EV business activities under the Tesla trademark.
On May 2, the Delhi High Court restrained Tesla Power from publishing promotional advertisements featuring EV products under the Tesla trademark, following a plea from Tesla Inc.
