Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. It is the world’s largest coffeehouse chain. As of November 2021, the company had 33,833 stores in 80 countries, 15,444 of which were located in the United States
Tata Starbucks arrived in India in October 2012, as a joint venture between Starbucks Coffee Company and Tata Consumer Products Limited. Since then, the brand has grown from strength to strength.
A trademark infringement case filed against Starbucks by an Indian company called SardarBuksh in 2016. SardarBuksh claimed that Starbucks had copied its name and logo, which it argued were too similar to its own brand.
In the Starbucks vs SardarBuksh case of 2016, SardarBuksh had filed a suit against Starbucks, alleging trademark infringement and passing off. SardarBuksh had claimed that Starbucks had copied its name and logo, which they argued would confuse customers and lead to a loss of business.
The Delhi High Court, in its ruling, found that there was a strong likelihood of confusion between the two brands, and that Starbucks had failed to provide sufficient evidence to show that there was no infringement or passing off. The court found that the word “Buksh” was a distinctive and integral part of SardarBuksh’s brand, and that Starbucks had used a similar-sounding word, “Bucks,” in its logo, which could lead to confusion among customers.
The court ordered Starbucks to refrain from using the offending mark, and to pay damages to SardarBuksh for the losses suffered by them due to the infringement. The court’s decision was seen as a significant blow to Starbucks’ operations in India, as it forced the company to change its logo and branding strategy
The Starbucks-SardarBuksh case that was decided in 2018 was an appeal filed by Starbucks against an earlier ruling by the Delhi High Court in 2016. In the 2016 ruling, the court had found that there was a strong likelihood of confusion between the two brands and had ruled in favour of SardarBuksh, the Indian coffee chain that had alleged that Starbucks had copied its name and logo.
Starbucks appealed the ruling, and in 2018, the Delhi High Court reversed its earlier decision and ruled in favour of Starbucks. The court found that there was no evidence of customer confusion between the two brands and that Starbucks had not copied SardarBuksh’s name and logo.
The case was significant for Starbucks in India, as it highlighted the importance of protecting intellectual property rights in a rapidly growing market. It also underscored the challenges that global brands can face when entering new markets, particularly in relation to local competition and regulatory requirements
Delhi High Court relied on several legal sections and precedents in its ruling, including:
The Trade Marks Act, 1999: This is the primary legislation governing trademarks in India. It provides for the registration, use, and protection of trademarks in India.
The principle of passing off: This is a common law doctrine that protects unregistered trademarks and prevents the use of deceptive or confusingly similar marks in trade. In this case, SardarBuksh had argued that Starbucks had engaged in passing off by using a name and logo that were too similar to its own brand.
Case law: The court may have relied on previous case law and legal precedents to make its decision. For example, the court may have looked at other cases involving trademark disputes or passing off claims to guide its decision-making.
In the Starbucks vs SardarBuksh case of 2018, the Delhi High Court ruled in favour of Starbucks and dismissed the allegations of trademark infringement and passing off made by SardarBuksh.
The court also observed that Starbucks had invested significant resources in promoting its brand and products in India and had developed a strong reputation among consumers. The court noted that SardarBuksh had only been in operation for a few years and did not have the same level of brand recognition or market share as Starbucks.
Overall, the court’s ruling was seen as a significant victory for Starbucks in India, as it affirmed the company’s right to operate under its own name and logo in the country. The case also highlighted the importance of protecting intellectual property rights in a rapidly growing market, particularly for global brands seeking to establish a foothold in new territories.
Submitted By – Shreya Nayak
Roll No – M2252