Name of the Case: Pepsico Inc. & Anr.

vs Parle Agro Private Limited on 18 September, 2023

Citation: C.S. (COMM) 268/2021, I.A. 7170/2021 & I.A. 9591/2021

Plaintiff: PEPSICO INC. & ANR. ....

Through: Mr. Amarjit Singh Chandhiok,
Sr. Adv. with Mr. Manish Jha, Mr. Dhruv
Nagar, Ms. Avni Sharma. Advs.

Defendant: PARLE AGRO PRIVATE LIMITED

Through: Mr. Sudhir Chandra, Sr. Adv.
with Mr. Ankur Sangal, Ms. Pragya Mishra
and Mr. Shashwat Rakshit, Advs.

Bench: HON'BLE MR. JUSTICE C. HARI SHANKAR

INTRODUCTION

The Hon'ble Delhi High Court has issued a significant and somewhat historic ruling,
prohibiting Parle Agro from using the tagline "FOR THE BOLD" as the primary and initial
part of their advertising for "B Fizz," in a recent legal battle that has captured the attention
and opinions of the entire Indian beverage industry. This injunction was brought about by a
case that was filed by the well-known beverage corporation PepsiCo, which claimed unfair
competition and trademark infringement. In addition, the lawsuit's evolution has not only
caused a stir in the fiercely competitive beverage industry, but it has also brought up some
crucial issues regarding branding tactics and intellectual property rights.

FACTS OF THE CASE

The dispute started when the defendants in this case, Parle Agro, released "B Fizz," a
carbonated beverage that positioned itself as a daring and refreshing option for customers.
The defendants' use of the slogan "For The Bold" in "B Fizz's" advertising campaign drew
PepsiCo, the plaintiff, in this case. By November 2020, they were informed that Parle Agro
had introduced a product in India under the same slogan. It was PepsiCo's firm belief that this
slogan was eerily close to their own well-known slogan, "For The Bold, The Young, The
Original," which is connected to one of the most well-known soft beverages, Pepsi.

Under the slogan and brand "For The Bold," PepsiCo first started a global marketing
campaign to inspire DORITOS customers to live boldly by embracing each moment and
stepping outside of the box. They were also urged to travel more and lead more assertive
lives. It stated that it started utilizing the slogan "For The Bold" globally in 2013 and in India
since its launch in 2015. However, Parle insisted in a formal declaration that PepsiCo refrain
from using the slogan "For The Bold" on all of its DORITOS chip packaging. It came across
PepsiCo product boxes with taglines like "DO YOU SNACK BOLD," "FOR MORE BOLD
EXPERIENCES," "SNACK BOLDLY," "BOLD CRUNCH," and "BOLD FLAVOR" instead.
Parle has separately filed a rectification petition against PepsiCo's "For The Bold" mark
before the IPD with C.O. (COMM. IPD-TM) 5/2021. The petition seeks to invalidate the
registration of the word mark that PepsiCo was awarded, which is now on hold until
September 25, 2023.

PepsiCo also claimed that Parle Agro's adoption of a virtually identical phrase was not an
accident but rather a calculated attempt to capitalize on the goodwill and reputation Pepsi had
built over the years. Moreover, they argued that this may first perplex all customers and cause
them to think "B Fizz" was connected in some way to PepsiCo. In retaliation, PepsiCo took
legal action, requesting an injunction to stop Parle Agro from using the slogan "For The
Bold." PepsiCo was further incensed by Parle's September 2020 attempt to register the phrase
"Be The Fizz! For The Bold!" as a trademark on a "proposed to be used" basis.

Justice C Hari Shankar the Hon’ble Delhi High Court judge passed the interim order in
PepsiCo’s suit seeking a permanent injunction against Parle from using the tagline “For The
Bold”. The suit is filed by the Plaintiff’s PepsiCo Inc. and PepsiCo India Holdings Private
Limited.

ARGUMENTS FROM THE PLAINTIFF

Arguments on behalf of PepsiCo were led by Mr. Amarjit Singh Chandhiok, learned Senior
Counsel and arguments on behalf of Parle were led by Mr. Sudhir Chandra, learned Senior
Counsel.

The plaintiff asserts that it started a worldwide marketing campaign for its DORITOS line of
tortilla chips with the slogan "For The Bold." The plaint avers, curiously, that "the idea
underlying the "For The Bold" campaign was to encourage and urge the consumers of
DORITOS to live boldly by seizing the moments in life and breaking out of the norm of
everyday life, to experience more and live more". Since PepsiCo's DORITOS brand of tortilla
chips was released in India in 2015, Plaintiff has been utilizing the slogan "For The Bold" in
connection with the company's DORITOS tortilla chips, which it began producing in 2013.
Since then, the plaintiff claims that the phrase "For The Bold" has become inextricably linked
to PepsiCo's DORITOS tortilla chips due to widespread and constant use. The plaint
highlights how the phrase "For The Bold" is a recurring feature in all advertising campaigns
for PepsiCo's DORITOS chips. To bolster its position, PepsiCo has posted films on YouTube
and record social media platforms.

The production of DORITOS tortilla chips, which are known for their iconic "For The Bold"
slogan, is said to have started locally in India in 2017. Ever since, DORITOS chips with the
aforementioned phrase are believed to have sold a lot. The refunds from DORITOS chip sales
from 2016 through October 2020 are also included in the plaint.

ARGUMENTS FROM THE DEFENDANT

According to Mr. Chandhiok, "For The Bold" is a significant feature of Parle's label.
Mr. Chandhiok goes on to say that Parle has emphasized the phrase "For The Bold" in all of
its advertising efforts.

As a result, Parle has appropriated PepsiCo's registered "For The Bold" trademark and used it
as the inspiration for its own marketing initiative. It's argued that Parle cannot contest the
legality of PepsiCo's registration of "For The Bold" as a trade mark because it applied for
registration of the phrase "Be The Fizz! For The Bold!"

It is also argued that Parle has failed to present any convincing objection to PepsiCo's
argument in a written declaration. PepsiCo's claims about the standing and global recognition
that DORITOS tortilla chips—which are marketed under the slogan "For The Bold"—had
amassed over the years have not been significantly refuted. Parle's reply consists solely of an
omnibus denial, which would need a trial and the right to PepsiCo's protection during that
process.

JUDGEMENT

Following hearing arguments from both parties and a thorough review of the facts, the
Hon'ble Delhi High Court granted a preliminary injunction in PepsiCo's favor. The slogan,
which reads "Be The Fizz! For The Bold!" in the upper half and "For The Bold!" upside
down in the lower half, is confined to the label's border. Therefore, "For The Bold!" is only a
small portion of Parle's contested label. Even if it is treated as part of the “Be The Fizz! For
The Bold!” tagline, it nonetheless constitutes only the latter half of the tagline,” the court
said. The court further found that the ‘For The Bold’ tagline used by Parle Agro was indeed
similar enough to PepsiCo’s tagline to create a likelihood of confusion among consumers.

Therefore, "For The Bold" as it appears in the aforementioned Facebook ads is a distinct
mark rather than just a small portion of a bigger label, as it does on the outside of the "B
Fizz" bottle. It is exactly the same as PepsiCo's registered "For The Bold" word mark when
used independently. Given that the two marks are identical, Section 29(2)(c) read in
conjunction with Section 29(3) would apply, and the Court must assume that there was a
reasonable chance of confusion due to Parle's use of the "For The Bold" mark. Accordingly,
the court stated that Parle's use of "For The Bold" in its promotion of their "B Fizz" beverage
is definitely infringing in nature.

The court's ruling depended on the core ideas of trademark law, which safeguards a business's
image and brand identity. It was decided that Parle Agro's usage of a slogan so close to
PepsiCo's may hurt the latter's brand by eliminating what makes PepsiCo unique in the first
place and further confusing customers. The court further observed that Parle Agro's intents
were called into doubt by the timing of the release of "B Fizz" and the similarity of the
taglines.

CONCLUSION

The Hon'ble Delhi High Court's ruling to forbid the defendant from using the slogan "For The
Bold" as the main focus of their "B Fizz" advertising serves as a helpful reminder of the value
of trademark protection and sheds light on the possible legal repercussions that may arise
from branding similarities. It also emphasizes how competitive the beverage business really
is, and how companies need to always exercise caution to avoid violating the intellectual
property rights of its rivals and competitors. This case will probably be remembered as a
turning point in business history, making corporations more cautious in their branding tactics
and more proactive in safeguarding their own brand identities.

IMPORTANT LAWS

In The Trade Marks Act of 1999, Section 124(1)

The Trade Marks Act of 1999, Section 124(1)(a).
The Trade Marks Act, 1999, Section 124
The 1999 Trade Marks Act
The Trade Marks Act of 1999, Section 29