Madhya Pradesh High Court Rules In Favor Of Mount Everest Breweries In Trademark Dispute Over Beer Label

Madhya Pradesh High Court Rules In Favor Of Mount Everest Breweries In Trademark Dispute Over Beer Label

The Indore bench of the Madhya Pradesh High Court has recently granted a plea from Mount Everest Breweries Limited, challenging the registration of a similar beer label, “VASCO 60000 EXTRA STRONG BEER,” by a competing brewery. The challenge was based on concerns that the label could lead to potential trademark infringement.

The High Court found that the two labels bore significant resemblance, which could potentially confuse consumers. The division bench, comprising Justice Vivek Rusia and Justice Binod Kumar Dwivedi, noted that the labels shared similar features such as the red background, black strip, and distinctive color combination, including the prominent use of the numeral “60000.” The court concluded that this similarity was likely to mislead the public

In its order, the court emphasized that Rule 9 of the Madhya Pradesh Foreign Liquor Rules, 1996 places the burden on the competing mark owner (respondent No. 3) to prove that their label does not resemble any existing label. It was highlighted that the Excise Commissioner has the responsibility to ensure that no new label infringes on existing trademarks or creates confusion.

The bench also referred to Rule 12 of the M.P. Beer and Wine Rules, 2002, which mandates that the provisions of the Foreign Liquor Rules apply to the registration of beer and wine labels, ensuring that no infringement occurs.

Mount Everest Breweries Limited, which holds a license to manufacture foreign liquor and produces “Mount 6000 Super Strong Beer,” contended that the label of “Vasco 60000 Extra Strong Beer” was too similar to their own and had been unfairly registered. The Excise Commissioner had initially registered the competing label, prompting Mount Everest to seek redress from the High Court.

Initially, a single Judge had rejected Mount Everest’s plea but allowed the company to pursue a civil suit. Mount Everest then appealed to the division bench, which overturned the previous orders.

The bench granted the Writ Appeal, overturning both the Excise Commissioner's December 2023 order and the single judge bench's August 12 order. It also permitted the competing mark owner (Respondent No.3) to submit a new label application for their product to the Excise Commissioner, which will be reviewed in accordance with the law.