Delhi High Court Extends Protection for Tesla in Trademark Dispute
The Delhi High Court has provided temporary relief to Elon Musk's electric vehicle giant Tesla in an ongoing trademark infringement case against Indian company Tesla Power India. Justice Tejas Karia issued an order ensuring that a previous commitment made by the domestic firm remains effective until the lawsuit reaches its final resolution.
The court mandated that Tesla Power India must continue honoring its undertaking not to manufacture or market electric vehicles under the Tesla brand name. This protection for the American EV maker comes at a crucial time when Tesla has officially entered the Indian market with its first showroom in Mumbai.
Background of the Trademark Conflict
According to legal reports, Tesla approached the Delhi High Court in May 2024 after Tesla Power India announced plans to enter the electric vehicle market using the Tesla trademark. The American company informed the court that Tesla Power India had published newspaper advertisements about this strategic move into the EV sector.
The legal battle traces back to April 2022 when Musk's Tesla sent cease-and-desist notices to both Tesla Power India and Tesla Power USA. Despite these legal warnings, the Indian company continued advertising and marketing products under the Tesla trademark, prompting the current court proceedings.
During initial court hearings, the owner of Tesla Power India appeared before the court and gave a written undertaking stating they had no plans to manufacture electric vehicles. The company also committed not to market other companies' electric cars under the trademark or trade name 'TESLA POWER USA' or any other brand confusingly similar to 'Tesla'.
Escalation and Failed Mediation
In subsequent developments, Tesla alleged that Tesla Power had begun manufacturing e-scooters under the Tesla brand, contradicting their earlier commitments. This allegation led the court to order Tesla Power India to file a detailed affidavit disclosing:
- The specific electric vehicles sold by them
- Names of dealers through which these vehicles are sold
- Dates of vehicle launches
- Sales figures since launch
- Current stock availability
The case was referred for mediation in an attempt to reach an out-of-court settlement. However, when mediation efforts failed, the court resumed hearing the case on its legal merits. The Delhi High Court has yet to release a detailed copy of the recent order that extends the protective measures for Tesla.
Tesla's Strategic India Entry
This legal protection comes at a significant moment for Tesla's India operations. In July 2024, Tesla inaugurated its first official Indian showroom at Maker Maxity Mall in Mumbai's Bandra Kurla Complex (BKC). This launch represents a landmark event for Musk's automotive company, marking its formal entry into one of the world's largest automobile markets.
The showroom opening follows years of negotiations, policy discussions, and speculation about Tesla's India entry strategy. The Indian government has permitted Tesla to enter the market without requiring local manufacturing operations initially, though this may change as the company expands its presence.
Tesla's Mumbai showroom is designed to reflect the company's global brand image and will test consumer interest in premium electric vehicles amid growing climate awareness and urban demand for sustainable transportation solutions in India.
The trademark case, officially titled Tesla Inc v. Tesla Power India, continues to proceed through the Delhi High Court, with the next hearing date yet to be announced. The outcome could set significant precedents for international brand protection in India's rapidly growing electric vehicle market.
