In April 2022, Tesla Inc. discovered that a company called Tesla Power India Pvt. Ltd. (TPI) was operating in India. TPI is known in the country for its production of batteries and energy storage solutions. Since then, the two entities have n in a dispute, as Elon Musk’s company found that TPI was using the “Tesla Power USA” brand name, among other things, on its website. This led to a notice in which Tesla demanded that TPI cease using the “TESLA POWER” and “TESLA POWER USA” trademarks. Negotiations between the companies continued until March 2023, but TPI’s continued use of the word “Tesla” and the lack of progress led Tesla to initiate legal proceedings in India.
Tesla, dissatisfied with the progress of the negotiations and TPI’s continued use of the word “Tesla,” decided to file a lawsuit. The main grounds for the lawsuit were based on trademark infringement, unlawful passing off, and unfair competition. All of this is crucial to the case, as “Tesla” is a renowned trademark known worldwide, so using it in any way benefits the entity that engages in such infringement.
First and foremost, TPI’s use of the name “Tesla” may mislead consumers, leading them to believe that TPI’s products are affiliated with Tesla, especially considering the trademarks registered by Tesla in India. Secondly, using the word “Tesla” in its phrases and slogans falsely presents TPI’s products as originating from Tesla, which may harm the brand’s reputation. Finally, the American company emphasized that the disputed name falsely presents TPI’s products as originating from Tesla.
During the preliminary hearing, TPI denied any involvement in the production or marketing related to electric vehicles. TPI explained that its main business focuses on batteries for cars, inverters, and UPS systems, rather than the strict production of cars. TPI’s defense also emphasized that any marketing materials using the word “Tesla” referred to collaboration with another EV manufacturer, which only highlighted the independent production of batteries for electric vehicles. However, TPI committed to refraining from using Tesla’s registered trademarks and avoiding promotional activities for EVs under the disputed marks. The Delhi court, recognizing the case, acknowledged TPI’s commitment in the matter.
It is likely that a final court decision in this case will be reached soon, but this does not preclude the possibility of an appeal by either party.
Therefore, does the use of the name “Tesla” by TPI for its core battery-related business infringe on Tesla’s trademark rights, especially considering Tesla’s trademark registrations in India and its global reputation? This may be crucial for the court, as well as the final ruling in the case.
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