BY: Cheenu Bhatia
Mediation Ordered in Tesla Inc. vs. Tesla Power India Pvt Ltd. Dispute
The Delhi High court vide his order dated 4th July 2024 has directed mediation between Tesla Inc. and Tesla Power India Pvt Ltd. to resolve their ongoing dispute to which both parties has agreed and will now appear before a senior mediator from the Delhi High court mediation and conciliation Centre.
But what prompted Tesla Inc. to sue Tesla Power India Pvt Ltd.?
Tesla Inc., a worldwide renowned company claims to be in the business of innovative advanced battery technologies has alleged that an Indian company Tesla Power India Pvt Ltd is using name “TESLA” in its advertisements to promote its business of EV scooters.
Tesla Inc. claims that this misuse of their trademark is causing consumer confusion and harming their business reputation. In support of its allegations, Tesla Inc. presented copies of advertisements to the court, showing the use of the “TESLA” name by the Indian company.
Tesla Power India Pvt Ltd., in its defense, argued that that it has no intention to manufacture EVs at all and will not market other entities’ EVs as well under their trademark and stated that advertisements that were issued were in respect of a marketing alliance that they had with another manufacturer of EVs being ‘E-Ashwa’.
Furthermore, Tesla Power is accused of breaching the court’s order and selling e-scooters with TESLA name despite having submitted a declaration to cease such practices.
Will Tesla be able to protect its Trademark on grounds of transborder reputation?
As the dispute moves towards mediation, both parties hope to find a mutually acceptable resolution. The next court hearing is scheduled for September 18, 2024, where further directions will be provided based on the progress of the mediation.