Mount Everest Breweries Limited, the producer of STOK beer, filed a lawsuit against Regent Beers & Wines, alleging infringement of intellectual property rights. The dispute arose from the competitor’s reuse of distinctive bottles featuring the embossed STOK logo and panda image. These bottles, originally belonging to Mount Everest, were being supplied to Regent Beers through scrap metal traders. Although the outer labels were removed, the embossing remained visible, which, according to the plaintiff, misled consumers and violated the exclusive trademark rights. The case escalated when the commissioner judge issued an injunction prohibiting the refilling of the embossed bottles in all production facilities within the state of Madhya Pradesh.
The parties presented diametrically opposed positions. Mount Everest argued that the use of the trademark was an infringement and that it posed a risk of misleading consumers. Regent Beers defended itself by pointing out the common practice in the industry of buying back used bottles and the lack of jurisdiction of the judge to enforce intellectual property rights. The key point of contention became the interpretation of Article 29 of the 1999 Trademarks Act, which prohibits the unauthorized use of identical or similar marks in commerce. The answer was not straightforward – on the one hand, the bottles physically belonged to the buyers, and on the other hand, the embossed markings remained the intellectual property of the manufacturer.
The Supreme Court, overturning the initial decision of the lower court, sided with the judge commissioner. The court emphasized that simply removing the external labels does not eliminate the risk of consumer confusion, as the embossed markings still associate the product with the original manufacturer. The reasoning states: “While bottle recycling is in line with the principles of sustainable development, it cannot come at the expense of intellectual property rights.” The court also rejected the argument about the violation of economic freedom under Article 19(1)(g) of the Indian Constitution, pointing out that the ban applies to a specific practice, not the respondent’s business as a whole.
This groundbreaking ruling establishes a new standard of protection for manufacturers. First, it recognizes the tangible carriers of trademarks (such as bottles) as an integral part of brand identity, deserving protection even after a change in the physical owner of the object. Second, it strengthens the role of regulatory bodies (such as the Excise Commission) in enforcing intellectual property rights, linking customs regulations with intellectual property legislation. Third, the ruling draws a clear line between environmentally friendly recycling and unfair market practices – suggesting that the removal of embossing (and not just labels) should be a condition for the reuse of packaging.
The alcohol industry faces a new challenge: the need to implement systems for tracking the circulation of packaging or invest in temporary markings. For lawyers, this case has become a prime example of the conflict between environmental protection and intellectual property protection – a conflict in which the Indian judiciary has clearly sided with the creators of brands. As this story shows, in the era of the circular economy, trademark law will require increasingly sophisticated solutions.
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