The dispute revolved around whether ITC Limited’s packaging design for their Sunfeast Mom’s Magic Butter Cookies, which featured a blue and yellow colour scheme, was misleadingly similar to Britannia Industries Limited’s trademark. The issue at hand was whether this similarity constituted trademark infringement and passing off.

Judgment:

The Madras High Court ruled in Britannia’s favour, granting an interim injunction prohibiting ITC from selling its butter cookies in blue and yellow packaging. The Court observed that where a prima facie case is made out, an interim injunction should clearly follow. The Court’s decision was based on the following principles of trademark law:

Distinctiveness: A trademark must be distinctive to receive legal protection. The Court recognized that Britannia’s blue and yellow scheme had acquired distinctiveness in the market, becoming closely associated with Britannia’s Butter Cookies in the minds of consumers.

Deceptive Similarity: Trademark infringement occurs when another party uses a mark that is deceptively similar to the protected mark, causing consumer confusion. The Court determined that ITC’s use of a similar colour scheme was likely to mislead consumers into believing their Butter Cookies were Britannia’s, thereby infringing Britannia’s trademark rights.

Passing off: Passing off occurs when a party misrepresents its goods or services as those of another party, deceiving consumers into purchasing them. The Court found that ITC’s adoption of a similar colour scheme and packaging constituted an attempt to exploit Britannia’s established reputation and goodwill.

The Madras High Court’s decision in this case is a significant victory for Britannia Industries Limited. This case serves as a reminder to businesses of the importance of protecting their trademarks and avoiding branding elements that may be similar to those of their competitors.