Kesarval Beverages, based in the western Indian state of Goa, had been using the “Flying Horse” trademark for its beer products since the 1950s.
Its “Flying Horse” brand became well-known for its quality and taste, and the company registered the trademark in India in 2007.
AB InBev, attempted to register the “Flying Horse” trademark in India for its premium beer brand, “Budweiser 8.0” in 2015. The action was a part of AB InBev’s efforts to increase its market share in India, which was regarded as a crucial area for the company’s growth.
Kesarval Beverages objected to AB InBev’s trademark application, claiming that it would cause confusion in the market and infringe on its existing rights to the “Flying Horse” trademark. The company argued that it had been using the trademark for decades and that AB InBev’s use of the same trademark for its Budweiser 8.0 beer would dilute its brand and cause irreparable harm to its business.
On the other hand, AB InBev argued that its use of the “Flying Horse” trademark was distinct from that of Kesarval Beverages and there was unlikely to be any market misunderstanding. The company claimed that its premium Budweiser 8.0 beer catered to a different market than the beer produced by Kesarval Beverages.
The dispute was heard by the Intellectual Property Appellate Board (IPAB) in India, which ruled in favor of Kesarval Beverages in 2018. The IPAB held that AB InBev’s use of the “Flying Horse” trademark for its Budweiser 8.0 beer would cause confusion in the market and infringe on Kesarval Beverages’ prior rights to the trademark.
AB InBev appealed the IPAB’s decision to the Bombay High Court, arguing that there was no similarity between the two trademarks and that the use of “Flying Horse” for Budweiser 8.0 was not likely to cause confusion in the market. The company also challenged the validity of Kesarval Beverages’ trademark registration.
In 2020, the Bombay High Court heard the matter and affirmed the IPAB’s judgement. The court concluded that it was likely that consumers would be misled by AB InBev’s use of the “Flying Horse” trademark for its Budweiser 8.0 beer, leading to market confusion. The court also dismissed AB InBev’s attempt to have Kesarval Beverages’ trademark registration invalidated, finding that the business had failed to provide sufficient evidence in support of its claim.
As a result of the ruling, AB InBev was prevented from using the “Flying Horse” trademark for its Budweiser 8.0 beer in India. The company was also ordered to pay a fine of INR 1 crore to Kesarval Beverages for trademark infringement.
The case was a significant victory for Kesarval Beverages, which had been fighting to protect its trademark rights against a global giant. The company’s founder, Ramnath Kare, hailed the ruling as a “historic moment” for the Indian beer industry and a testament to the power of perseverance and hard work.
The case also highlights the importance of protecting intellectual property rights and the challenges faced by small businesses in defending their trademarks against multinational corporations. It also emphasizes the need for companies to conduct thorough research before entering a new market and using existing trademarks. In this case, AB InBev’s attempt to use the “Flying Horse” trademark without realizing that it was already in use by a local company highlights the importance of being aware of local market conditions and respecting the rights of existing trademark holders.