Delhi High Court favors 'Chaayos'; grants time to 'Chaiops' to change its name to 'ChaiApps'

Delhi High Court favors 'Chaayos'; grants time to 'Chaiops' to change its name to 'ChaiApps'

The modification will come into effect from 01 April 2023

In yet another case of trademark infringement, a startup has agreed to change the name of its outlets.

The leading tea cafe chain 'Chaayos' owned by Sunshine Teahouse Pvt. Ltd had approached the Delhi High Court against the use of its registered trademark by a Ghaziabad-based startup MTRM Global Pvt. Ltd, which runs its outlets under the name 'Chaiops'.

In September, Sunshine Teahouse filed a suit seeking a permanent injunction restraining infringement and unauthorized use of its trademark. It claimed using the mark 'Chaayos' since 2012 and it was registered in 2017.

It told the court that its outlets sold chai (tea) in over 12,000 ways and its products could also be bought online. But MTRM Global had adopted the mark 'Chaiops' for identical products and services, which was a violation of its registered trademark.

The matter was referred by the court to mediation, but the proceedings failed. Later, when further options to settle the dispute were explored before the court, the parties agreed to settle the dispute.

MTRM Global agreed to change the name of its outlets from 'Chaiops' to 'ChaiApps'. However, there was a disagreement on the timeline to enable the defendant on implementing the change.

The bench comprising Justice Pratibha M Singh said reasonable time could be granted to MTRM Global.

In its order, the bench stated, "The court asked if the parties would be satisfied if the defendant affects the change to its existing centres, physical boards, stationery, etc. by 01 April 2023. Whereas, in respect of online platforms and/or any new outlets to be opened, the change would be immediate."

Justice Singh also noted, "The defendant shall withdraw their currently pending trademark applications before the Trademark Registry for the trademark 'Chaiops' or its variants within one week of this settlement and e-mail the proof of having done so to the plaintiff."

Thus, the change in display boards at the existing 37 physical outlets of MTRM Global will come into effect from 01 April 2023 after the settlement with Sunshine Teahouse, which runs over 200 cafes across India.