After a subsidiary of the Swiss-based Accell Group claimed trademark infringement in connection with related items being made by it under the "Raleigh" mark, the Delhi High Court ordered two Ludhiana-based enterprises to stop producing new "Rallies" bicycles.

Additionally, Imperial Cycle Mfg. Co. and Rocket Cycles Private Limited were ordered by Justice Pratibha M. Singh to take down their website www.ralliesbikes.com within a week.

The court was dealing with a case brought by Swiss Bike Vertriebs GMBH seeking a permanent injunction to stop the two Punjab-based organizations from violating its trademark "RALEIGH" used for bicycles, cycles, or bikes.

The plaintiff claimed ownership of a wide variety of bicycles and cycling brands throughout Europe, including the 125-year-old mark "RALEIGH. The company was established in 1887 under the name Raleigh Cycle Co. Ltd., and the court was informed that the mark has been in use all over the world.

Furthermore, it was said that the abovementioned mark was initially used to import bicycles and bikes into India in 1910. The plaintiff also claimed that in India, the mark "RALEIGH" and its many versions had been used since 1939 by its forebears.

The plaintiff argued that because the Defendants' mark is phonetically similar to the Plaintiff's mark "RALEIGH," their use of the mark "RALLIES" violates both the Plaintiff's statutory and common law rights. Additionally, it was claimed that the defendants weren't just copying the mark but also a number of other characteristics, including the bike's colour scheme, pictures of the plaintiff's bicycles, and even the plaintiff's promotional poster. The defendants have agreed to stop producing and selling their goods under the mark "RALLIES," according to Justice Singh's order, which accepted this undertaking and granted the plaintiff an interim injunction.

The court ruled that "Defendants shall discontinue manufacturing as well as advertising all such goods listed above under the mark "RALLIES" or any other mark which is identical/deceptively similar to the Plaintiff's mark "RALEIGH" in physical stores, online, and through e-commerce platforms.

Justice Singh gave the defendants until November 15th, 2023 to dispose of their existing stock, which totaled roughly 4,000 items and cost Rs. 1.2 crores. The defendants had requested a timeframe of 18 months to do so.

"However, it is made plain that no new products bearing the disputed mark shall be manufactured. No products bearing the "RALLIES" trademark may be sold after that date, either in brick-and-mortar stores or online "the tribunal added.

The Hon'ble bench will now hear the case on December 13.

Author: Swetha Gunasekaran Advocate