A panel has found that Khadi is not a generic term and that the Khadi and Village Industries Commission (KVIC) is the rightful owner of the trade mark “Khadi” and “Khadi India.” The National Internet Exchange of India Domain Dispute Policy (INDRP) Arbitration Tribunal in New Delhi rejected a private entity’s claim that “Khadi” is a generic word, stating that use of the well-known brand name by anyone else is likely to cause confusion and deception with KVIC’s goods and services. The decision came after KVIC filed a lawsuit challenging the registration of the domain name www.khadi.in by Delhi-based Jitendra Jain and his colleagues, with the tribunal ruling that the domain name was registered in “bad faith.”
Pankaj Garg, the only Arbitrator in the case, ordered the domain name www.khadi.in to be transferred to KVIC and permanently barred Jain and his representatives from using the trade name Khadi. “The contested domain name is identical and confusingly similar to a named trademark and a service mark in which the KVIC has a claim,” the Arbitrator stated. “It is an indisputable fact that KVIC, the plaintiff is the legal or actual owner of the trademark “Khadi”/”Khadi India,” according to the tribunal “. “The impugned domain name (www.khadi.in), in the judgement of the Tribunal, is a trademark-backed domain name that not only breaches the terms of the Trade Marks Act 1999, but also breaches Clause 4 of the NIXI’s INDPR policy,” the Arbitrator noted. “It is ordered that the domain name www.khadi.in be transferred to the complainant (KVIC) respondent and any person acting on its behalf are permanently barred from using the domain name or any other deceptively similar trademark that may constitute infringement of the complainant’s registered trademark, as well as from doing anything else that is likely to cause confusion and annoyance to the complainant.”
The National Internet Exchange of India (NIXI) was also ordered by the Tribunal to execute any incidental or ancillary actions required in the domain name transfer. The order, according to KVIC Chairman Vinai Kumar Saxena, will enhance Khadi’s fight against trademark infringement and assistance in the protection of Khadi craftsmen’ lawful rights. “KVIC would make each and every effort to prohibit any misuse of the ‘Khadi’ brand name, as it has a direct impact on the lives of our craftsmen who make real handcrafted items in rural parts of India. Individuals or businesses misusing the Khadi brand will continue to face harsh punishment from KVIC. This is to protect Khadi craftsmen’ interests and prevent the sale of any bogus Khadi product,” Saxena explained. He cited a March order by the Delhi High Court prohibiting a company from using the brand name Khadi and the Charkha emblem to sell its products under the moniker “IWEARKHADI.” If the company is not prohibited from using the Khadi brand name, the high court has stated that “irreparable loss will result.”
“KVIC has established a prima facie case in its favour or side. The balance of convenience also favours the plaintiff, KVIC and if an ex-parte injunction is not issued, irreparable harm will result. The defendants, their partners, employees, representatives, agents and all those operating on their behalf are therefore prohibited from manufacturing, selling or advertising any form of goods or service under the name IWEARKHADI until the next date of hearing,” the top court decided.
KVIC is suing Fabindia for Rs 500 crore in damages, according to him, and the case is currently pending in the Mumbai High Court.
