Delhi High Court restrains Jalandhar firm from making bicycles under Rallies mark after trademark suit by UK's Raleigh

The court has allowed the Jalandhar based company exhaust its existing stock but restrained them from manufacturing, selling or marketing any products under the Rallies mark. The Delhi High Court recently restrained a Jalandhar based company from manufacturing cycles, bikes or any other product under the trademark ‘Rallies’ after UK based Raleigh – one of the oldest cycle manufacturers in the world – filed a suit for trademark infringement [Swiss Bike Vertrjebs GMBH Subsidiary of Accell Group v Imperial Cycle MEG. Co. (Partnership Firm) & Anr]. Single-judge Justice Prathiba M Singh, ordered the defendants to cease manufacturing and advertising in physical from or on online platforms, any goods under the mark 'Rallies'. However, the judge allowed the company to exhaust its existing stock by November 2023. "Considering that the total stock of products is approximately 4,000 pieces, amounting to ₹1.2 crores, time is granted till 15th November, 2023 for the Defendants to dispose of the existing stocks in their custody. It is, however, made clear that there shall be no fresh manufacture of the products under the impugned mark. After the said date, none of the products under the mark ‘RALLIES’ shall be made available in the physical stores or on the e-commerce platforms. The Defendants shall also shut down their website i.e., www.ralliesbikes.com within one week from today,” the Court said. Raleigh approached the High Court arguing that the adoption of the mark ‘Rallies’ by the defendants was violative of its statutory and common law rights because the mark's phonetical similarity to ‘Raleigh’. The Court was further told that defendants were not merely copying the mark but also various other attributes such as colour combination used on the bikes, images of the plaintiff’s bicycles and even the plaintiff’s advertisement poster available on their website. The defendants’ website was also portraying that their bicycles are manufactured in the UK which is bound to create confusion between the two, the Court was informed. As the matter was listed for orders before the Court, defendants made a statement that they will give up further manufacture and sale of the products using the Rallies mark. The Court, therefore, noted the statement and passed the injunction order. The case will be heard next on December 13. Advocates Manisha Singh, Abhai Pandey, Varun Sharma, Gautam Kumar, Swati Mittal, Aditya Goel and Shivani Singh appeared for the plaintiff. Defendants were represented through advocates Atul Sharma, Sanjay Gupta, Abhinav Sharma and Ayush Srivastava.

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