Nestle Owns Maggi said IPAB over Trademark Dispute

Trademarks are invaluable assets of every business. These indicate source of origin of goods and services and help the consumer’s in distinguishing goods and services of one person from that of another. Trademark indicates toward a superior quality to which the consumer associates the product with. They promote businesses and help in generating goodwill and brand value and it is on account of this inherent quality that they have emerged as one of the most sought after assets of the 21st century over which diverse claims are raised every day before the various Judicial and Quasi-judicial forums of the country.

In fact, the Indian Trademark Office is flooded with Oppositions to various Trademark Applications seeking registration of trademark for diverse categories of goods and services. One of the most recent Trademark disputes that had been decided by Quasi-Judicial Forum is that of the dispute over Trademark 'Maggi' between Switzerland based Multinational Giant Societe Des Produits Nestle and Mumbai based Swaraj Industrial and Domestic Appliances Pvt. Ltd. The Intellectual Property Appellate Board (IPAB) decided the dispute and rejected the trademark application of Swaraj industry for the registration of mark 'Maggi for various classes of goods including Home appliances, mixers and grinders.

'Maggi' is popular trade name / trademark held by Nestle for selling variety of food products around the world. This trade name has acquired distinctive character and has been in use in India since 1974. The dispute between Nestle and Swaraj industries over the trademark 'Maggi' began in 1990 when Swaraj Industries filed application for registration of mark 'Maggi' as trademark for home appliances, mixers, and grinders produced by it. Nestle Company resisted this application and claim by Swaraj industries over the mark 'Maggi'. Nestle filed opposition to the trademark office where the Senior Examiner rejected the claim by Nestle Company over the trademark 'Maggi' and held in favour of Swaraj industries thereby allowing the application for registration of trademark Maggi for Swaraj industries goods.

The Senior examiner had accepted applicant /swaraj industries argument that deception and confusion was least likely to be caused in the minds of consumer in relation to the source of origin of goods on account of trademark 'Maggi' being used by the companies for different class of goods. The senior examiner held that goods in question were quite distinct from that of Nestle and also held that Nestle could not establish its trademark was well known.

Swaraj industry had submitted before the Examiner that they had been using the mark since 1984 and the mark had acquired distinctive character with respect to their goods. Nestle on the other hand submitted that the term 'Maggi' was not a word found in dictionary and was in fact derived from the surname of the company founder Julius Maggi. Nestle also submitted that that Maggi as brand had been listed as a Super brand by many journals and crores of rupees are annually spent on the promotion of Maggi products with which people identify the company with. Nestle also submitted that trademark Maggi was being used by the company around the world since 1887 and was used in India since 1974. Nestle also submitted that it had registered Maggi as a trademark for various food product produced by it since 1970.

Nestle appealed against this order of senior examiner before the IPAB challenging the stance taken by the senior examiner of trademark office. IPAB thereafter set aside the order of the examiner and held that in favour of Nestle.

IPAB held that in case the application for registration of "Maggi" as trademark for home appliances by Swaraj industries is allowed then it was in all likelihood to cause deception and confusion in the minds of general public about the source of origin of goods. IPAB said that the goods for which Swaraj industry had claimed trademark protection were indeed "allied and cognate". IPAB said that the appellants/Nestle goods under the trademark "Maggi" are food and snack items that are purchased by the common man and the household goods of the respondent would make the common man think that the goods of the respondent emanate from the appellant source.

IPAB also observed that the respondent (Swaraj industries) had not achieved the burden of establishing the proprietorship, usage and reasons for the adoption of the trademark "Maggi". IPAB also said that respondents did not prove that such adoption would not cause deception and confusion in minds of general public in case the mark is already is vogue or is in use in another classes of goods.

Thus, IPAB set aside the order Senior Examiner and held in favour of Nestle thereby asserting the country strong initiative to protection of trademarks in India.