Delhi High Court Upholds Territorial Goodwill Requirement in Trademark Passing Off Dispute

The Delhi High Court recently clarified that in passing-off suits under trademark law, goodwill must be proven within India and within the exact class of goods; trans-border or global reputation alone is insufficient.

The court declined VIP Industries’ defence of prior international goodwill for its “Carlton” mark, emphasising the lack of evidence of its brand reputation in India for travel bags.

Meanwhile, Carlton Shoes Ltd’s longstanding presence and consumer association in India since 1994 supported the passing-off claim.

Consequently, an interim injunction was granted restraining VIP from using “Carlton” on Class 18 goods, and the appeals were dismissed.