Tesla vs Tesla Power: Gurgaon company removes logo from e-scooters

New Delhi: Gurgaon-based Tesla Power Pvt. Ltd has asked its partners and vendors to remove the Tesla logo from their electric scooters following the Delhi high court order prohibiting the sale and advertisement of products related to the Tesla trademark.

During a hearing on the trademark dispute case with American EV giant Tesla Inc, the Indian company, informed the court that it had no intention to sell its electric scooters under the Tesla trademark.

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

The court stated that Tesla Power must take further steps to comply with its undertaking and refrain from engaging in any EV business using the Tesla trademark. 

The court deferred the hearing to 4 July, post-vacations.

Trademark infringement

Elon Musk-led Tesla Inc had alleged that Tesla Power was selling e-scooters with the Tesla logo despite a court undertaking on 2 May that it will not sell anything related to EVs. Tesla Inc. had claimed that the Indian company had violated the court's order.

On 28 May, the bench of Justice Anish Dayal sought an affidavit detailing the number of electric scooters sold and the current stocks available, along with the names of dealers.

The court had issued a notice in response to Tesla Inc's plea and restrained Tesla Power from publishing any advertisements featuring electric-vehicle (EV) products with a trademark similar to Tesla's. It also instructed Tesla Power to reply to the allegations.

The American EV giant in its lawsuit argued that Tesla Power's use of the trademark in India was causing confusion among consumers and potentially harming its business interests.

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 are associated with the US company, and sending complaints to Tesla Inc.

Also read: How Tesla's first India lawsuit will affect EV trademark battles

Legal experts earlier told Mint that the case could have a significant impact on similar cases in the future as it could establish precedents in intellectual property (IP) law related to the rapidly growing EV industry.

The verdict in favour of Tesla Inc could lead to stricter enforcement of IP rights, which would affect licensing negotiations and technology co-referencing businesses in the industry.

During the previous proceeding, the high court had also criticised Tesla Inc, saying that it had not shown any urgency, considering that it has been communicating with Tesla Power about the trademark dispute since 2020. The court said Tesla Power had been operating for four years and deserved an opportunity to present its case.

Tesla Power argued that it was not manufacturing EV batteries, but rather selling lead-acid batteries used in conventional vehicles and inverters. At the previous hearing, its chairman Kavinder Khurana personally pleaded in court that the company had no plans to enter the EV market.

He 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. According to Khurana, Tesla Power has been in business since 2020 and has a million customers in India.

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