Tesla Inc.

vs Tesla Power
India Private Limited
& Ors.
CS (COMM) 353/2024
CASE ANALYSIS
 FACTS OF THE CASE

The electric vehicle (EV) Juggernaut Tesla Inc. decided to take legal action
against Tesla Power India Pvt. Ltd. A Gurgaon-based battery seller, with the
allegation of trademark infringement. The lawsuit, filed in the Delhi High
Court, revolves around the unauthorized use of the 'Tesla' trademark by
Tesla Power. Furthermore, a cease-and-desist notice was sent by Tesla Inc.
on 18th April 2022

The dispute between Tesla and TPI has been prevailing since the year 2020.
The court criticized Tesla Inc. with the reasoning it had not shown any
urgency, especially considering that it has been in communication with
Tesla Power since 2020 over the trademark dispute., allowing Tesla Power
to present their case , for which Tesla Inc. strongly emphasized the
urgency of the matter .
This notable case highlights the complexities of trademark law in a globalized
economy. The outcome will be closely watched by businesses operating across
borders, particularly those with strong brand recognition.

CONTENTIONS OF THE PETITIONER

I. The Petitioner, Tesla Inc. claim that the Gurgaon-based company has blatantly
copied their brand name for their monetary and goodwill benefits, amounting to
trademark infringement.

II. Tesla inc. claims that use of the Tesla trademark in India is confusing consumers
and damaging their interests with regards to business, which is in a form, deceiving
the consumers of the nation.
III. Tesla inc. also claims that the opponents advertise themselves as an EV
company in newspapers, leading consumers to mistakenly associate its products
with Tesla Inc., citing potential damage to their brand and ongoing business
activities in India.

IV. Tesla inc. states that consumers are buying TPI batteries under the false
assumption that the same is in association with Tesla Inc., which leads to
complaints and negative reviews directed at Tesla inc.
 CONTENTIONS OF THE RESPONDENT

I. Tesla Power argued that it is not manufacturing EV batteries but rather

selling lead acid batteries used in conventional vehicles and inverters.

II. Counsel for the Respondent argued for the company representative present
in court stating that the respondents have no intentions to enter the EV market
and also properly clarified that the advertisement featuring the Tesla trademark
was related to another company, e-Ashwa, with whom Tesla Power has a
strategic partnership to sell branded products.

III. Counsel for the Respondent states on instructions from defendant, who is
present in court that defendants have no intention to manufacture EVs at all and
will not market other entities’ EVs as well under their trademark and tradename
‘TESLA POWER USA’ and or any other brand deceptively similar or use the word
‘TESLA’. The Counsel further states that they will not issue any promotional
advertisements or material in relation to EV vehicles under thier brand name.
 DECISION OF THE COURT

The Delhi High Court issued a notice in response to arguments and plea
made on behalf of Tesla Inc. as well as subsequent to the undertaking on
record by the Respondents to not use the registered device/logos of ‘TESLA’,
restraining Tesla Power from publishing any promotional advertisements
featuring EV products with a similar trademark. The Court further states
that Tesla Power India Pvt. Ltd. has been in operation for years and deserves
the opportunity to present its case; the company cannot be shut down
abruptly. The court also instructed the respondents to file further replies in
response to the allegations posed by the Petitioners of the case and
adjourned the case to 5th of August,2024.