Delhi High Court sends Tesla vs. Tesla Power trademark case to mediation

New Delhi: The Delhi High Court on Thursday referred a trademark infringement case involving Tesla Inc and Tesla Power for mediation after the two companies agreed to try and settle their dispute through this route.

A senior mediator of the Delhi High Court Mediation and Conciliation Centre will take up the matter starting July 18. If the mediation fails, a bench of the court will hear the case on September 18.

Chander Lall, a senior lawyer representing Tesla Inc, told the court on Thursday that mediation might not be effective because Tesla Power would not relinquish its brand. 

"Mediation will not work when it comes to their brand—they are not going to give it up," Lall said.

In response, lawyer J. Sai Deepak, representing Tesla Power, said, "We are open to mediation.”

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Tesla Inc, the US electric vehicle giant co-founded by Elon Musk, sued Tesla Power India Pvt Ltd on May 2, accusing the Gurugram company of infringing on its trademark and misleading consumers by implying an association with its EVs. Tesla Inc. claimed this caused confusion among customers and potential damage to its reputation as it looked to enter the Indian market.

Lall reiterated that Tesla Power was not abiding by the court's orders and that it continued to sell e-scooters on IndiaMart. He also said that people had called him up personally, alleging cheating by Tesla Power.

“They say they have been charged lakhs of rupees and then abandoned," Lall said.

According to Sai Deepak, Tesla is not a unique trademark as there are many companies and registrations with this name in India, Taiwan and other countries.

“Therefore, for someone to come out and say that because of Elon Musk, we are the only ones who are entitled to claim Tesla and a monopoly over it, frankly speaking, doesn't fly," he said.

On May 30, Tesla Power informed the court that it had instructed its partners and vendors to remove the Tesla logo from their electric scooters to comply with a May 2 Delhi High Court order prohibiting the sale and promotion of products bearing the Tesla trademark. Tesla Power clarified that it had no intention to market its electric scooters under the Tesla brand.

The Indian company said 699 e-scooters bearing the Tesla trademark had been sold by its partners and dealers so far. Tesla Power's partner company, e-Ashwa, was mostly responsible for selling the e-scooters.

Also Read: Tesla’s India entry on ice: Musk yet to firm up plans for India

The court instructed Tesla Power to take further steps to comply with its orders and refrain from engaging in any EV business using the Tesla trademark.

The US company informed the court that Tesla Power was selling e-scooters with the Tesla logo even after undertaking on May 2 that it would not sell anything related to EVs. Tesla Inc. had claimed that the Indian company had violated the court's order.

On May 2, the Delhi High Court restrained Tesla Power from publishing promotional advertisements featuring EV products under the Tesla trademark, following the plea from Tesla Inc. It claimed Tesla Power not only had a similar trademark but also advertised itself as an EV company in newspapers. It said consumers were mistakenly buying Tesla Power batteries, assuming they were associated with the US company, and sending complaints to Tesla Inc.

Tesla Power argued in response that its primary business was supplying lead-acid batteries for applications such as automobiles, inverters, and UPS systems, and that it was not involved in manufacturing EVs. The company said advertisements featuring the Tesla name were part of a marketing alliance with another EV manufacturer, E-Ashwa, and that it had no intention of producing or marketing EVs under its own brand.