Ideal Jawa Owner Of 'Yezdi', Stoppage Of Business Doesn't Affect Rights In Trademarks: Karnataka High Court In Case Against Classic Legends

The Karnataka High Court has declared that Ideal Jawa (India) Ltd is the owner of the mark "Yezdi" (word and device) taken independently or in conjunction with other words and that the trademarks of the Company (in liquidation), remain in custodia legis of the court, as they were owned by the company prior to the time of its winding up. A single judge bench of Justice S R Krishna Kumar has accordingly restrained Boman Irani and Classic Legends Pvt. Ltd, or any person claiming through or under from using the yesteryears famous motorbike brand mark "Yezdi" or any other mark containing the word "Yezdi" as a word or a device whether independently or in conjunction with other words including all domain names which use the word / mark "Yezdi. Further the bench held that Irani who established Classic Legends with Mahindra & Mahindra for reviving the brand could not have obtained registration of the marks "Yezdi" during the process of winding up of the company. The conduct in obtaining registration of the marks is in bad faith and amounts to misappropriation of the assets of the Company. Accordingly it has held that all trademark, registration certificates issued by Registrar of Trademarks, Mumbai, Delhi and Ahmedabad in favour of Irani are null and void.It has also directed Irani and Classic Legends to pay Rs 10 lakh as costs to the Official Liquidator each, which shall be utilised towards the costs and distribution to be made in the process of winding up of the Company. Further, Boman Irani and Classic Legends Pvt Ltd are liable to account and pay to the Company for all gains made from the use of the trademarks of the Company. They shall provide the Official Liquidator with all details of the sales and earnings from the use of the mark "Yezdi" in any form whatsoever. The Official Liquidator shall appoint a reputed firm of Chartered Accountant to determine the benefit that has accrued to Mr. Boman Irani and Classic Legends Pvt Ltd from the use of the trademarks of the Company. The court partly allowed the application filed by the official liquidator and permitted it "to sell all trademarks and such other associated rights in and over the trademarks with all goodwill associated with the mark by public auction." Case Details The company ideal Jawa (India) Ltd came to be incorporated on 22.09.1960. On 09.10.1969, registration of the mark 'Yezdi' was granted in favour of the company. The use was claimed since 01.01.1969. On 25.07.1991, a company petition was filed for winding up of the Company. The company was wound up on 17.08.2001 and the Official Liquidator was appointed to take over the Company and oversee the winding up process. On 01.08.1998, a website called www.yezdi.com was registered by Mr. Irani, The Trademark Registry removed the Yezdi mark on 05.10.2007. On 17.06.2013, 14.09.2013, 01.01.2014 and 02.07.2014, Irani filed applications for registration of certain marks both word and device of "Yezdi" before the TM Offices at Delhi, Mumbai and Ahmedabad, which came to be allowed. The main question before the court was of ownership of the mark and if the company continues to exercise ownership rights can any other person appropriate the said marks to himself by the process of registration of the mark with the Trademark registry. Findings Firstly, the bench noted that as on the date of winding up order, there was no other person who had made a claim to the trademark. All registrations for the marks "Yezdi" also stood in the name of the Company. The court upfront rejected the argument of Irani that his father (Rustom Irani) adopted the trademark and after his demise the same devolved on him as legal heir. It was also claimed that Rustom Irani allowed the Company to use the mark as it was family controlled, though the manufacturing stopped, the goodwill and reputation which the brand created for itself has continued to vest in him. Thus the use of the word "Yezdi" was permitted by his father Rustom Irani and that the reputation and goodwill of the mark continues even as of date, the court was told. The bench said: "There is no material on the basis of which, it can be established that the use by the Company of the mark "Yezdi" was simply permissive and was revokable at any point in time by Mr. Rustom Irani or Mr. Irani." Further, it said: "This is not a case where registration was granted in favour of Mr. Rustom Irani and he in turn granted registered user rights or granted a license to the Company to use the mark. When Mr. Rustom Irani never did claim any individual rights in and over the trademark for Mr. Irani to make a claim that upon winding up, he has acquired rights over the same cannot be countenanced." Noting that popularity of the brand can hardly be rejected, the court said: "That the goodwill established by the mark continues to date is very clear from the various fan pages available online. That...

Ideal Jawa Owner Of 'Yezdi', Stoppage Of Business Doesn't Affect Rights In Trademarks: Karnataka High Court In Case Against Classic Legends

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