The Delhi High Court has brought an end to a seven-year-old trademark infringement case filed by Nestlé SA, the Swiss parent company behind instant noodle brand Maggi, after the company reached an out-of-court settlement with Shankeshwar Utensils & Appliances Pvt. Ltd.
What happened?
Nestlé initiated legal action against the utensil maker in 2018 for allegedly infringing its trademark. The utensil maker was using ‘Maggisun’ on its products, to which the FMCG major argued tat the name bore a deceptive resemblance to its iconic ‘Maggi’, potentially misleading consumers.
A single-judge bench led by Justice Tejas Karia passed the final order on September 22, recording the settlement reached between the two parties. “The suit is decreed in terms of the settlement arrived at between the parties… The parties are directed to be bound by the terms of the settlement,” the court noted, adding that all pending applications were accordingly disposed of.
Settlement terms
As part of the settlement, Shankeshwar Utensils & Appliances formally acknowledged Nestlé as the legitimate owner of the ‘Maggi’ trademark and agreed to cease manufacturing, selling, or promoting any products under the ‘Maggisun’ label or any other mark that may be considered identical or similar.
The company further committed to destroy all infringing articles, such as pressure cookers, packaging, and labels bearing the Maggisun trade mark, and to submit photographic proof of destruction within two weeks. Further, it committed to withdraw its trade mark registration for Maggisun. After these guarantees, Nestlé reaffirmed that it would not seek additional legal action, as long as the settlement arrangements were included in the final decree.