After Chaayos’ trademark infringement lawsuit in the Delhi High Court, “Chaiops” will become “ChaiApps”
- ByStartupStory | November 1, 2022
A renowned chai café chain, “CHAAYOS,” filed a trademark infringement lawsuit against a tea startup in Ghaziabad, and the latter has since consented to change its name and logo.
Sunshine Teahouse Private Limited, the company that operates tea cafes under the “CHAAYOS” mark, is suing MTRM Global Pvt Ltd, which sells tea products through a cafe with the name and style of “CHAIOPS,” in an effort to “permanently restrain” it from using the “CHAIOPS” mark. The case is being heard by a single-judge bench led by Justice Prathiba Singh.
The plaintiff, Sunshine Teahouse Private Limited, asserted ownership of and use of the trademark “CHAAYOS” in 2012. The claimant, who claims to be the leading chain of chai cafés operating in various states and providing customised tea in more than 12,000 ways at more than 200 outlets, registered the mark in 2017.
The court’s order stated, “Furthermore, where the Plaintiff’s physical stores are not present, the Plaintiff has reached out to its customers through its website http://www.chaayos.com offering delivery services and e-marketplaces like http://www.amazon.in, www.flipkart.com, Bigbasket, Instamart, Grofers, etc.”
In July 2020, the defendant, MTRM Global Pvt Ltd, adopted the mark “CHAIOPS” in order to sell tea items through a café with the same name and design. The defendant was incorporated in 2017. The court was informed during the hearing that there are currently more than 37 Chaiops locations. According to Chaayos, the defendant used the mark “CHAIOPS” to market goods and services that were identical to those provided by the plaintiff, infringing on their registered trademark.
The parties had been sent to mediation by the top court last month, but the efforts were unsuccessful. The parties before the high court looked at further options for resolving the disagreement on the following hearing date, which was September 23. The parties finally came to an agreement on October 10 that the defendant would modify the “CHAIOPS” mark to “ChaiApps”.
The high court noted the agreed terms on the basis of which the parties eventually resolved the disagreement when the case was heard on October 11. “The Plaintiff and the Defendant hereby confirm and declare that they have freely and voluntarily entered into this full and final settlement without the use of coercion or force. In accordance with the order, the defendant “confirms and declares that it would alter its mark ‘CHAIOPS’ to ‘ChaiApps’ (New Word Mark).”
Additionally, the defendant consented to use the new name and emblem at all future locations starting on the day the order was issued. According to the rules, the defendant has one month to inform its clients of the new name. The defendant must stop using the name “CHAIOPS” after a month, including on the website, email addresses, and social media accounts like Twitter, Facebook, Linkedin, etc.
There was some disagreement regarding the time frame for implementing the trademark change, and the court decided that the defendant should be given “appropriate time to implement the shift.”
“The Court then asked the attorneys for both parties if they would be satisfied if the Defendant made the modification to its current centres, physical boards, stationery, etc. by April 1, 2023, and that the change would take effect immediately for any new outlets that would be launched online or in person. Both parties agree that this is acceptable, the order stated.
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