DELHI HIGH COURT: IN TRADEMARK INFRINGEMENT SUIT OVER ‘HELL’ ENERGY DRINK; AWARDS RS 30 LAKH DAMAGES TO HUNGARIAN COMPANY

The Delhi High Court in the case Hell Energy Magyarorszag KFT v. Shri Brahm Shakti Prince Beverages Pvt Ltd & Ors observed and decreed a trademark infringement suit in favour of Hungarian company seeking protection of its trademark ‘HELL’ used for energy drinks. The court also directed that a sum of Rs.30 lakh is to be paid by the the Defendants to the Plaintiff as costs and damages.

In the present case, the plaintiff grievance was that the Defendants were using the mark ‘HELLxxx’ in respect of energy drinks. It was mentioned that the Plaintiff filled the previous court, wherein the court granted an ex-parte ad interim order of injunction. In the said order, two Local Commissioners were also appointed who seized large amounts of infringing products from the premises of the Defendants. Thereafter, the parties settled their disputes and had entered into a settlement agreement.

The court observed that the settlement recognized Plaintiff’s rights in the mark ‘HELL’/’HELL ENERGY’ and other variants and the Defendants undertook that they would not manufacture, sell or advertise products under the impugned mark ‘HELLxxx’, ‘HELL ENERGY DRINK’, or any other deceptively or confusingly similar trademark.

Further, it was alleged that Defendants violated the terms of settlement and launched another product by the name ‘HILLxxx’.

It was argued by the Defendant that ‘HILLxxx’ is a coined mark and is structurally, phonetically, and visually different from Plaintiff’s marks ‘HELL’ and ‘HELL ENERGY’.

The bench comprising of Justice Pratibha Singh observed and held that in terms of the settlement agreement. In any manner, the defendants are not entitled to use the mark “HILLxxx” as the same is confusingly and deceptively similar to “HELLxxx”, which is the name/mark used by the Plaintiff.

In the said agreement, the clauses leave no doubt that the Defendants were not permitted to adopt any mark identical or confusingly or deceptively similar to the Plaintiff’s mark ‘HELLxxx’. The adoption of the mark ‘HILLxxx’ and under the said mark, the sale of the products by the Defendants is a clear indication that the Defendants show scant regard to the orders passed by this Court.

The Court directed that by 30th November, 2022, the defendant to pay damages in three instalments. Further, it was also made clear by the Courtthat if the Defendants are found to be in violation of the court orders again, they would be liable to pay damages to the tune of Rs. 1,00,00,000/-.

The Court directed that the defendants shall ensure that the proposed label and mark of their product are not in any manner identical or deceptively/ confusingly similar to that of the Plaintiff. The new label and the mark which would be adopted by the Defendant shall be given to the Plaintiff, within ten days from the order of the court.

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