(MENAFN- Live Mint) The Delhi high court on Monday granted interim protection to Elon Musk's Tesla Inc. in its trademark infringement case against Gurugram-based Tesla Power India Pvt. Ltd.

The single judge bench of Justice Tejas Karia restrained Tesla Power from using Tesla Inc.'s registered trademarks, device marks, or logos in any form until the suit is decided.

The order bars Tesla Power from using, soliciting, offering services or advertising under the impugned mark, including on the internet and e-commerce platforms, in relation to batteries for all kinds of vehicles, automotive UPS systems, inverters, solar hybrid valve-regulated lead-acid (VRLA) batteries, sealed maintenance-free VRLA batteries, and lithium-ion batteries.

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The direction follows Tesla Power's own June 2024 statement that it had no intention of infringing on the US electric vehicle (EV) maker's trademark, as well as the failure of mediation efforts.

The case file

Tesla Inc. filed its first lawsuit in India in May 2024, alleging that Tesla Power was misleading consumers by implying an association with the US company's EVs. The US giant argued that this created confusion just as it prepared to enter the Indian market. The court then prohibited Tesla Power from promoting or selling products bearing the Tesla name.

On 30 May, Tesla Power informed the court that it had directed its partners and vendors to remove the Tesla logo from e-Ashwa electric scooters, which were sold through a marketing partnership, to comply with a 2 May order. On 4 June, both sides agreed to mediation.

Tesla Power told the court it did not intend to manufacture or market electric scooters using the Tesla name. It admitted, however, that 699 e-Ashwa scooters carrying the Tesla branding had already been sold by dealers and partners. The court then directed the company to take further steps to comply with its orders and to refrain from any EV-related activity using the Tesla mark.

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In its defence, Tesla Power said its main business was manufacturing and supplying lead-acid batteries for automobiles, inverters and UPS systems, and that it did not manufacture EVs. It said advertisements carrying the Tesla name were part of a marketing alliance with e-Ashwa and that it had no plans to produce or sell EVs under its own brand.

Tesla Inc. later alleged that Tesla Power continued to sell e-scooters with the Tesla logo despite agreeing not to do so, and that the company was advertising itself as an EV business in newspapers. Tesla said customers had bought Tesla Power batteries believing they were associated with Tesla Inc., which, it argued, showed that the use of the mark was misleading consumers.

Tesla's India foray

This case, filed shortly before its official entry into India, is Tesla Inc.'s first litigation in the country.

The company opened its first showroom in India in July and sold 40 cars in October, bringing its total sales to 104 units after delivering 64 cars in September. Tesla currently sells only the Model Y SUV in India.

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The company now has two showrooms in the country, one at Maker Maxity in Mumbai's Bandra Kurla Complex and the other at Worldmark 3 in Aerocity, New Delhi.

Tesla's expansion in the country is still in its early stages, but the Model Y's pricing places it in direct competition with luxury electric SUVs from Mercedes-Benz and BMW.

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