Tesla Power Barred from Advertising in Trademark Infringement Battle with Elon Musk's Tesla Inc

The Delhi High Court on Monday prohibited Gurugram-headquartered Tesla Power India from issuing any marketing communications regarding electric vehicle (EV) merchandise under the "Tesla" brand until final determination of Elon Musk's Tesla Inc trademark infringement legal action filed against the former, The Economic Times has reported. Justice Tejas Karia, while acknowledging the commitment provided by Tesla Power CEO Kavinder Khurana that it had no intentions to enter the EV market, said that the restraint order will remain in force till the main petition is decided.

The HC barred Gurugram-based Tesla Power from "using, soliciting, offering services or advertising under the impugned mark, including on the Internet and e-commerce platforms, in relation to batteries for all kinds of vehicles, automotive UPS systems, inverters, solar hybrid valve-regulated lead-acid (VRLA) batteries, sealed maintenance-free VRLA batteries, and lithium-ion batteries", the report added.

Failed Mediation

As mediation talks between Musk's Tesla Inc and Gurugram-based Tesla Power India failed, the court had last year agreed to hear the US electric-vehicle maker's trademark infringement petition.

Tesla Inc, a US-based multinational automotive and clean energy company, had moved court in May last year alleging infringement of its Tesla trademark by the Gurugram firm. 

It said Tesla Power's use of the trademark in India was causing confusion among consumers and potentially harming its business interests, it said, adding that consumers were mistakenly buying Tesla Power's batteries assuming they were associated with the US company and thereafter registering complaints with it.

Tesla Power's Defence

However, Tesla Power had argued that it was not manufacturing EVs but only selling lead acid batteries for automobiles and inverters.

However, Khurana had submitted to the court that the company had no plans to enter the EV market and the advertisements featuring the Tesla trademark were related to another company, e-Ashwa, with which it has a strategic partnership to sell branded products.

Allegations of Undertaking Violation

However, later that month, Tesla Inc accused the Indian company of violating an undertaking given to the court, saying Tesla Power was selling electric scooters through dealers under various sub-brands. The court had then asked Tesla Power to file an affidavit on the number of electric scooters it sold and the stocks with it.

Tesla Power argued that it was not in violation of the trademark as Tesla was not a coined mark, and the US company could not claim "monopoly" over it. There are many companies with the same name in the world, including in India, it said.

The company also told the court that it had written to vendors and partners to remove the Tesla marks on the electric scooters. "We don't wish to sell anything beyond the undertaking," it had assured the HC.