Bombay High Court Rules in Favor of Allied Blenders & Distillers in Mansion House Trademark Dispute
In a landmark ruling, the Bombay High Court has allowed Allied Blenders & Distillers (ABD) and Dutch distiller Herman Jansen Beverages to launch Mansion House brandy and Savoy Club gin in India, bringing an end to a 17-year legal battle with Tilaknagar Industries. This decision has significant implications for both companies and the broader alcoholic beverage industry in India.
Background of the Dispute
The legal battle began in 2008 when Herman Jansen Beverages, formerly known as UTO, filed a trademark infringement lawsuit against Tilaknagar Industries (TI). The dispute centers around the ownership rights of the Mansion House and Savoy Club trademarks in India. TI had been marketing and selling Mansion House brandy in the country since signing an agreement with UTO in 1987. However, the Dutch company argued that the arrangement was never legally solemnized.
In December 2011, a one-member bench of the Bombay High Court ruled in favor of TI, granting it the rights to the Mansion House brand in India. However, Herman Jansen appealed this decision before a division bench. In 2014, ABD acquired 50% ownership rights for the Mansion House and Savoy Club brands from Herman Jansen, thereby gaining the right to produce and sell these products in India.
The Recent Ruling
Justice Riyaz Chagla of the Bombay High Court dismissed TI’s application seeking an injunction against ABD and Herman Jansen Beverages. The judge observed that there was no apparent similarity between ABD’s label and TI’s mark, and that ABD had successfully demonstrated that its products would compete in a different market segment focused on high-end alcoholic beverages. The court’s order will come into effect only after four weeks, giving TI time to challenge the decision. During this period, ABD is prohibited from launching any products under the ‘Mansion House’ trademark.
Market Reactions and Implications
The Bombay High Court’s ruling has had an immediate impact on TI’s stock performance. On Monday, TI’s shares hit the lower limit of 20%, closing at ₹293.4 on the BSE. This significant drop reflects market concerns over the potential loss of exclusivity for the Mansion House brand.
TI has stated that it will file an appeal against the order before the division bench of the High Court. The company has assured stakeholders that it does not anticipate any immediate financial impact and will continue its uninterrupted use and sale of the Mansion House brand. However, the introduction of another player under the same brand name could create market confusion and potentially erode TI’s market share.
ABD’s Strategy and Market Position
Kishore Chhabria, the head of ABD, has been actively seeking to expand the company’s presence in the premium segment of the alcoholic beverage market. The acquisition of the Mansion House and Savoy Club brands is a strategic move aimed at strengthening ABD’s portfolio and competing with industry giants like Pernod Ricard and United Spirits. ABD plans to initially launch Mansion House brandy and Savoy Club gin in West Bengal.
Conclusion
The Bombay High Court’s ruling in favor of ABD and Herman Jansen Beverages marks a significant development in the long-standing Mansion House trademark dispute. While TI has been granted time to appeal the decision, the potential entry of ABD into the high-end market segment could reshape the competitive landscape for alcoholic beverages in India. As the legal battle continues, the outcome will have far-reaching implications for both companies and the broader industry.