Court restrains local company from using volvo trademark after Swedish automaker files suit

AHMEDABAD: A local court here has prohibited a local terry towel manufacturer from using the mark Vovlo on its products 30 years after the Swedish automotive giant, AB Volvo, filed a suit claiming infringement on its trademark rights.

The local company has also been told not to use the mark for the operation of another subsidiary that deals in investment and banking businesses. In addition to the injunction, the court ordered the local company to pay nominal damages of Rs 1 lakh to the Swedish company.In 1995, AB Volvo filed a suit against local companies, Volvo Terry Industries Limited and Volvo Finance Limited, seeking to restrain them from using the "Volvo" name in any form.

It argued that the defendants deliberately adopted the "Volvo" name to capitalise on the brand's global reputation and goodwill. The auto giant claimed to register the Volvo brand since 1975 and 1980 in different classes of products. Besides selling vehicles, it also sells towels and garments and supplied the court with a list of products in which the company deals.

The case details reveal that the local company was incorporated in 1992 and manufactured towels in a factory in Sanand. The Swedish company accused the local firm of passing off by using the well-known brand name. The court granted ample opportunity to the local company to defend its case, but it did not cross-examine any of the witnesses presented by the automobile company. Finally, the court ruled in favour of the Swedish company and said, "In view of the above documentary evidence, it appears that the defendants (local companies) and their promoters deliberately adopted the word 'VOLVO' as part of their business and violated the rights of the plaintiffs which are reserved under the Trade Mark Act, 1999.

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