Mediation Ordered in Tesla Inc. vs. Tesla Power India Pvt Ltd.
Dispute
The Delhi High court vide his order dated 4th July 2024 has
directed mediation between Tesla Inc. and Tesla Power India Pvt Ltd. to resolve
their ongoing dispute to which both parties has agreed and will now appear
before a senior mediator from the Delhi High court mediation and conciliation
Centre.
But what
prompted Tesla Inc. to sue Tesla Power India Pvt Ltd.?
Tesla Inc., a worldwide renowned company
claims to be in the business of innovative advanced battery technologies has
alleged that an Indian company Tesla Power India Pvt Ltd is using name “TESLA”
in its advertisements to promote its business of EV scooters.
Tesla Inc. claims that this misuse of
their trademark is causing consumer confusion and harming their business
reputation. In support of its allegations, Tesla Inc. presented copies of
advertisements to the court, showing the use of the "TESLA" name by
the Indian company.
Tesla Power India Pvt Ltd., in its
defense, argued that that it has no intention to manufacture EVs at all and will not market
other entities’ EVs as well under their trademark and stated that
advertisements that were issued were in respect of a marketing alliance that
they had with another manufacturer of EVs being ‘E-Ashwa’.
Furthermore, Tesla Power is accused of breaching
the court’s order and selling e-scooters with TESLA name despite
having submitted a declaration to cease such practices.
Will Tesla be able to protect its Trademark on
grounds of transborder reputation?
As the dispute moves towards mediation, both
parties hope to find a mutually acceptable resolution. The next court hearing
is scheduled for September 18, 2024, where further directions will be provided
based on the progress of the mediation.