Court Stays ₹4.5 Crore Costs on Patanjali Ayurved in Trademark Case

Court Stays ₹4.5 Crore Costs on Patanjali Ayurved in Trademark Case

Recently, the Bombay High Court has granted relief to Patanjali Ayurved by staying ₹4.5 crore costs that were imposed on it in a lower court through an order in an ongoing trademark infringement case. This is a major interim relief for the company, as it had moved the High Court challenging the heavy penalty imposed against it in the dispute.Case Background The case evolved from a trademark infringement lawsuit filed by a competitor against Patanjali Ayurved, where the competitor claimed that certain trademarks used by Patanjali infringed its rights and, thus, caused confusion and resulted in a violation of the intellectual property laws. The district court, after hearing the argument, had passed an adverse judgment against Patanjali and ordered ₹4.5 crore as compensatory costs. Patanjali raised a challenge against the said decision by arguing that costs imposed were excessive and unnecessary. Moreover, it stated that the ruling had not considered the case to be factual and legally cumbersome. It, therefore, prompted the company to move for redressal at the Bombay High Court. Order of the High Court During the hearing, the Bombay High Court commented that ₹4.5 crore costs called for a closer examination. The court further commented that such a heavy financial penalty would affect the company and its operations substantially, hence calling for an interim stay on the order. The High Court stayed the cost imposition and ordered the lower court to provide for a detailed justification of the quantum of costs awarded. At the same time, it had permitted the continuation of proceedings over the trademark dispute while ensuring that no immediate financial burden was thrust upon Patanjali. Legal Significance This case highlights that the costs of intellectual property disputes be proportionate. The courts are always expected to balance the rights of the aggrieved party with the financial implications for the accused party. The Bombay High Court's decision to stay the costs underlines its commitment to upholding fairness and justice in such high-stakes commercial litigations. Trademark Disputes and Business Impact Trademark infringement cases often involve significant financial and reputational stakes, especially for large corporations like Patanjali Ayurved. A judgment involving hefty costs or penalties can affect not just the company's finances but also its brand image and consumer trust. Conclusion Bombay High Court intervened, halting ₹4.5 crore in costs in an appeal against the judgment from trademark litigation. The final order would be a precedent to precede future disputes involving intellectual property and corporate accountability. So, the company has been temporarily saved to concentrate on its defence in case without immediate financial woes.

Find Lawyers In Your City

Connect with Best Lawyers at your location