Twenty Four Seven Retail Store Private Limited sues Godfrey Phillips India for unauthorized use of its trademark, with the Delhi High Court recording a statement that the tobacco company ceased using the mark in October 2024.
In a significant legal confrontation, Twenty Four Seven Retail Store Private Limited has initiated a lawsuit before the Delhi High Court against its former stakeholder Godfrey Phillips India Limited, alleging unauthorized use of the trademark "24Seven." The case highlights the complexities of intellectual property disputes, particularly in the context of business transitions and shared branding.
Background of the Dispute
- Origin of the Brand: Godfrey Phillips, a prominent tobacco manufacturer, entered the retail sector in 2005, establishing the 24Seven convenience store chain. Over time, this venture expanded to operate approximately 150 outlets by December 2023.
- Exit from Retail: In July 2024, Godfrey Phillips exited the retail business. Twenty Four Seven Retail Store alleged that despite this exit, the company continued using the "24Seven" trademark unauthorizedly.
Allegations by Twenty Four Seven Retail Store
- The plaintiff claimed that the use of the 24Seven trademark by Godfrey Phillips post its exit harmed the brand’s goodwill and market reputation.
- The lawsuit emphasized the importance of protecting intellectual property rights and ensuring that former stakeholders respect branding agreements.
Defense by Godfrey Phillips India
- Ceasing Trademark Use: Godfrey Phillips argued that it had ceased using the "24Seven" trademark in October 2024, three months after exiting the retail business.
- During the hearing, the company’s legal counsel categorically stated that the trademark was discontinued on October 10, 2024, and affirmed compliance with intellectual property norms.
Delhi High Court Proceedings
- Mediation Proposal: Justice Mini Pushkarna, presiding over the case, expressed an initial inclination to refer the matter to mediation, seeking an amicable resolution.
- Plaintiff’s Opposition: Twenty Four Seven Retail Store opposed the mediation suggestion, opting to argue the matter in court instead.
Key Legal Questions
The case raises critical questions regarding intellectual property rights:
- Trademark Violation: Did Godfrey Phillips’ alleged post-exit use of the "24Seven" mark constitute unauthorized trademark infringement?
- Impact on Goodwill: How does the continuation or perceived misuse of a shared trademark affect the brand’s market standing?
- Obligations Post Exit: What responsibilities do former stakeholders hold regarding the use of branding and trademarks after exiting a business?
Court’s Interim Order
The Court recorded the statement of Godfrey Phillips’ counsel and issued the following directive: "Let the Plaint be registered as a suit. Learned Senior Counsel states that the defendant is not using the mark ... 'Twenty Four Seven' was discontinued from October 10, 2024. The defendant is made bound by the statement."
Source: Business Standard
