A Costly Mistake Many Businesses Make Before They Begin

Digital Desk

A Costly Mistake Many Businesses Make Before They Begin

The importance of conducting a trademark search before using a name, logo, or brand.

-Abhiraj Jayant, Advocate Partner at Obiter Dicta Legal Solutions LLP

www.obiter.in

In 2015, a young entrepreneur from Delhi, Mr. Sanmeet Singh Kalra, recognising India’s growing appetite for premium coffee and aspirational café experiences, launched a homegrown coffee chain under the name “Sardarbuksh.” The brand quickly gained popularity and received an enthusiastic response from consumers, positioning itself as a notable player in India’s café culture.

However, this early success was soon overshadowed by a legal oversight made at the inception stage. The issue lay in the very name of the coffee chain. Starbucks Corporation, the global proprietor of the STARBUCKS trademark, took the view that the name “Sardarbuksh”, along with its logo, was deceptively similar to its own brand. In 2018, Starbucks Corporation instituted a suit before the Delhi High Court alleging trademark infringement and passing off.

The Delhi High Court passed an interim order restraining the use of the impugned name for opening new outlets. This order came at a crucial juncture, when the chain was reportedly poised to launch nearly 20 new stores. Although the dispute was eventually settled with Sardarbuksh

 

Agreeing to change its name to “Sardar Ji Buksh”, it resulted in significant disruption to business expansion plans, rebranding costs, and legal expenses.

The case eventually got settled however the it caused disruption in the business plans, expenditure on rebranding, and legal expenses. This case serves as an important reminder that brand names, company names and logos must be chosen very carefully.

 

 The Legal Position

Brand names, taglines, packaging, and logos are all protected under the Trade Marks Act, 1999. Registration of a trademark grants its proprietor the exclusive right to use the mark and to restrain others from using identical or deceptively similar marks in relation to the same or allied goods and services. Importantly, the law does not require dishonest intent to establish infringement. Even innocent or unintentional infringement can be restrained by courts, and legal consequences may follow regardless of the infringer’s lack of knowledge.

 

What Should You Do Before Using a Trademark

 

1.  Choose your trademark carefully

Before finalising any company name, brand name, logo, tagline, or packaging, it is crucial to ensure that it does not conflict with existing trademarks. Avoid adopting names or logos that are identical or deceptively similar to well-known or established brands, whether in India or internationally. A common misconception is that global brands which have not yet entered the Indian market are free to imitate—this is legally incorrect.

 

2.  Keep multiple options ready

When brainstorming brand or company names, always shortlist several acceptable alternatives. Avoid becoming emotionally attached to a single name, as it may already be unavailable or legally risky.

 

3.  Conduct a comprehensive trademark search

A thorough trademark search should be conducted on the website of the Indian Intellectual Property Office. This involves searching the proposed word mark and relevant trademark classes, which are determined by the nature of goods or services offered. In many cases, searches may be required across multiple classes. Given the technical nature of trademark classification and similarity analysis, seeking assistance from an Intellectual Property lawyer is advisable.

 

 4.  File for registration without delay

Once a trademark is cleared through a comprehensive search, an application for registration should be filed at the earliest. Delay can be costly, as trademark rights in India are largely based on priority and use.

 In today’s crowded and competitive marketplace, a brand is often a business’s most valuable asset. Yet, as the Sardarbuksh episode demonstrates, even a promising venture can face serious disruption if trademark law is overlooked at the outset. A simple trademark search, conducted before adopting a name or logo, can prevent years of litigation, forced rebranding, and financial loss. For entrepreneurs and businesses alike, investing time and resources in clearing a trademark is not merely a

legal formality, it is a strategic business decision that safeguards growth, goodwill, and long-term success.

 

 

 

-Abhiraj Jayant, Advocate is an expert in Intellectual Property Law. He is the partner of Obiter Dicta Legal Solutions LLP. He can be reached at

mail@obiter.in or at +91-9217114811.

Website: www.obiter.in

 

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