Cannot drive on ‘VOLVO’ and ‘FMX’ marks’ reputation rules court

In a trademark infringement suit filed by AB Volvo and its group companies (“Plaintiffs”) against Lamina Suspension Products Ltd. (“Defendant”), the Delhi High Court passed a decree of permanent injunction and summary judgment in favor of the Plaintiffs. The court restrained the Defendant from using the marks “VOLVO” and “FMX” on its leaf spring products and related materials, granting relief as per the settlement terms.

The Plaintiffs, including AB Volvo, Volvo Trademark Holding AB, Volvo Car Corporation, and Volvo Trucks Corporation, are global leaders in automotive and transportation solutions, with substantial operations in India. Their trademark “VOLVO” was adopted in 1915 and is registered across numerous classes in India. The Plaintiffs’ business activities include manufacturing heavy vehicles, construction equipment, and premium cars under the “VOLVO” brand. The “VOLVO” trademark was previously recognized as a well-known mark by Indian courts.

The Plaintiffs alleged that the Defendant was selling leaf springs under the “VOLVO” and “FMX” trademarks without authorization. These activities were identified through internet investigations and listings on the IndiaMart platform, prompting the Plaintiffs to file for an injunction and damages.

On March 8, 2022, the court granted an ex-parte ad-interim injunction preventing the Defendant from using the trademarks. During the pendency of the suit, the Defendant proposed to cease using “VOLVO” and “FMX” directly on products, instead adopting alternatives like “VV 400” and “VO 400” for identification. Additionally, it agreed to include disclaimers such as “We have no trade connection with Volvo” on promotional materials. The Defendant also consented to pay INR 5,00,000 in damages and costs.

The court accepted the Defendant’s proposal and the settlement terms, passing a summary judgment on these grounds. The injunction prohibited the Defendant from using the Plaintiffs’ trademarks and mandated compliance with the agreed alternative naming conventions and disclaimers. Thet court held that the parties were bound by the settlement, and all pending applications were disposed of.

Citation: Aktiebolaget Volvo & Ors. v. Lamina Suspension Products Ltd., CS(COMM) 152/2022 (H.C. Delhi Sept. 30, 2024). Available at: https://indiankanoon.org/doc/2482676/

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