In a significant setback for the renowned skincare and cosmetics brand Forest Essentials, the Delhi High Court has refused their plea for an interim injunction against the use of the names “Baby Forest” and “Baby Forest-Soham of Ayurveda” by a competing company for infant care products.
Justice Anish Dayal, presiding over the case, ruled that the term “Forest” is generic and cannot be monopolized by Forest Essentials. The judgment highlighted that Forest Essentials had not sought trademark registration under Section 17(2) of the Trademark Act, which would have provided exclusive rights to the term “Forest” in their industry.
“It may not be tenable for the plaintiff [Forest Essentials] to claim monopoly over the mark ‘FOREST,’ as it is a commonly used word,” stated Justice Dayal. The ruling emphasized the generic nature of the term, which precludes Forest Essentials from exclusive rights.
Despite denying the interim injunction, the court upheld a prior agreement that restricts the defendant, Baby Forest, from using the trademarks “SAUNDARYA” and “BABY ESSENTIALS,” which were previously contested by Forest Essentials.
Forest Essentials, represented by Mountain Valley Springs India Private Limited, argued that their substantial market presence and higher sales figures (Rs. 15 crores compared to Baby Forest’s Rs. 2.26 crores) justified exclusive rights to terms like “Baby Forest.” The court dismissed this claim, stating that financial disparity does not entitle a company to exclusive rights over generic terms.
The court found the evidence provided by Forest Essentials of consumer confusion to be inadequate. The few social media references presented were deemed insufficient to establish widespread or likely consumer confusion.
Justice Dayal acknowledged the impact of the digital age and the high number of smartphone users in India (around 450 million), suggesting that consumers today have better access to information and are likely more discerning. This consumer awareness is a critical factor when evaluating trademark disputes in the digital era.
Although the interim injunction was denied, the ongoing legal battle between Forest Essentials and Baby Forest may continue. This case underscores the importance of careful trademark selection and registration, especially when dealing with generic terms.
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