The Delhi High Court was contacted by the Khadi & Village Industries Commission (KVIC) in July with a request for a permanent injunction, costs, and damages against a company called "Khadi by Heritage" that was marketing PPE kits, hand sanitizers, and fireballs under the name "Khadi by Heritage." The aforementioned organisation was likewise applying KVIC's "Charkha logos" to its goods.
The famous brand "KHADI" and the "Charkha" emblem, which are registered in its favour under multiple classes of the Trademarks Act, were claimed as belonging to KVIC, a statutory entity created by an Act of Parliament.
KVIC successfully presented evidence of the long-standing use of the KHADI trademarks and the "Charkha Logo," their registrations in India and abroad, the substantial business turnover in the domestic and export market, the reputation of the brand, and the numerous injunction orders granted in KVIC's favour by the Delhi High Court in litigation as well as by panellists of the World Intellectual Property Organization and the Indian National Internet Exchange of India in domain name disputes.
In a decision dated July 26, 2022, Justice Prathiba Singh of the Delhi High Court ruled that the trademarks Khadi and the Charkha logo are well-known trademarks.
In addition to constituting infringement of KVIC's rights, the Court emphasised that using the trademark "KHADI" in this manner, particularly in connection with medical products, raises serious questions about the quality of those products.
The Domain Name Registrars where the Defendants' domain names were registered were ordered by the Court to transfer the domains to KVIC within a week.
In a surprising move, the Court further ordered the Indian Trademark Registry to suo moto invalidate all trademark applications submitted by Khadi by Heritage in light of this ruling. The Court ordered that within four weeks, the requisite orders to this effect be amended on the Trademark Registry portal.
The Court went on to rule that the entity had used the mark "KHADI" improperly only to advertise their items on their websites and other online listings, and that this misuse of KVIC's mark could not be excused given that the company had utilised the mark, name, and emblem indistinguishably. In recognition of KVIC's rights, the Court further granted KVIC damages in the amount of Rs. 10 lakhs and costs in the amount of Rs. 2 lakhs.
The Khadi trademark and the Charkha logos are well known and cannot be used improperly, the court said in a separate case brought by KVIC against the Khadi Design Council of India, which has been hosting pageants dubbed Miss and Mrs. India Khadi, on the same day.
Ankush Anami, the founder of KDCI, was issued a show cause notice for contempt by the court, which took strict note of his actions, and noted that the evidence presented by the counsel for KVIC shows, at least on the surface, that the Defendant is still communicating with Ministries and State governments while using the Khadi trademarks.
The KVIC Chairman, Shri Manoj Kumar, commented on these events by saying, "We are thrilled with the strong message put out by the Delhi High Court to individuals who are exploiting the Khadi trademark. We won't stand by and let dishonest third parties profit from this precious brand. We are quite proud that the Khadi trademark has been recognised as a well-known trademark."