Commercial Court Upholds Long-Standing Trademark Rights in Pulses Sector, Emphasising Prior Use
A recent decision by a commercial court has reinforced the protection of established intellectual property, granting an ad-interim injunction against a newer entity for alleged trademark infringement. The ruling safeguards the “Laxmi” brand, a prominent name in pulses, from a deceptively similar mark, underscoring critical legal principles for businesses with international market reach, including the UAE.
Background to the Dispute
The case involved Laxmi Protein Products Private Limited, a well-established manufacturer and marketer of pulses. The company, through its predecessors, has been utilising the trademark incorporating the word “LAXMI” along with a distinct device since as early as 1959/1960. This mark, commonly known as “LAXMI CHHAP,” has garnered significant goodwill and common law rights over decades of continuous use and is formally registered under applicable trademark legislation. The company’s product lines, encompassing various types of dals, are distributed extensively across multiple regions and are also exported to international markets, notably including the UAE.
Legal action was initiated after the plaintiff discovered a private limited company, incorporated in 2021, preparing to enter the market with pulses and moong products under the brand “ANNA LAXMI.” The plaintiff contended that this proposed mark bore a deceptive similarity to its long-established and registered trademark, posing a risk of consumer confusion.
Legal Arguments and Court’s Rationale
During the court proceedings, it was highlighted that the plaintiff’s “LAXMI” mark has been in active and continuous use for over six decades, significantly predating the defendant company’s establishment. The plaintiff’s representative argued that allowing the defendant to use the similar mark would cause irreparable commercial loss and dilute the substantial goodwill built over many years.
Despite the defendant company holding a registered trademark for “ANNA LAXMI” in specific goods classifications, the court referenced established legal precedents, including rulings from higher judicial bodies. These precedents affirm the principle that prior user rights often take precedence over subsequent trademark registration, particularly in instances where deceptive similarity is evident and could lead to market confusion. The court ultimately concluded that the paramount need was to protect the plaintiff’s long-established intellectual property rights and prevent potential harm to its brand and consumer base.
Court Decision and Regional Significance
The commercial court issued an ad-interim injunction, which prohibits the defendant from using the mark “ANNA LAXMI” for pulses and moong products falling under Class 31 of trademark classifications. This provisional order is set to remain in effect until the next hearing in the matter, scheduled for December 22, 2025.
For businesses operating within or exporting to the Gulf Cooperation Council (GCC) region, particularly those with a presence in the UAE as demonstrated by the plaintiff’s export activities, this judgment serves as a crucial reminder. It underscores the vital importance of robust intellectual property enforcement, the strength of prior user rights in trademark disputes, and the legal mechanisms available to protect brand integrity against potential infringement in competitive markets.