Delhi High Court Halts Manufacture Of 'Rallies' Bicycles By Ludhiana Firms In Trademark Infringement Suit By Accell Group Subsidiary

The Delhi High Court has directed two Ludhiana-based firms to cease fresh manufacturing of 'Rallies' bicycles after a subsidiary of Switzerland based Accell Group alleged trademark infringement in relation to similar products being manufactured by it under 'Raleigh' mark.

Justice Pratibha M Singh also directed the entities - Imperial Cycle Mfg. Co. and Rocket Cycles Private Limited, to shut down their website www.ralliesbikes.com, within a period of one week.

The court was dealing with a suit filed by Swiss Bike Vertriebs GMBH against the two Punjab-based entities seeking permanent injunction for restraining them from infringing its trademark 'RALEIGH' used for bicycles, cycles or bikes.

The plaintiff said that it owns a wide range of bikes and bicycle brands throughout Europe including 'RALEIGH', a mark which is 125 years old. The business was founded in the year 1887 in the name of Raleigh Cycle Co. Ltd. and that the mark has been in use globally, the court was told.

It was further submitted that bicycles and bikes under the said mark were imported for the first time in India in 1910. The plaintiff also said that its predecessors commenced the use of the mark 'RALEIGH' and its different variations in India in 1939.

The plaintiff contended that adoption of the mark 'RALLIES' by the Defendants is violative of the Plaintiff's statutory and common law rights as the Defendants' mark is phonetically similar to the Plaintiff's mark 'RALEIGH'. It was further alleged defendants are not merely copying the mark but also various other attributes such as colour combination used on the bikes, images of the Plaintiff's bicycles and even the Plaintiff's advertisement poster.

Stating that the defendants have agreed to give up further manufacture and sale of their products under the mark 'RALLIES', Justice Singh in the order accepted the said undertaking and passed an interim injunction in favour of the plaintiff.

"Defendants shall cease manufacture as well as advertising in physical shops and through online platforms including e-commerce platforms of all such goods mentioned above, under the mark 'RALLIES' or any other mark which is identical/deceptively similar mark to the Plaintiff's mark 'RALEIGH'," the court ordered.

As the defendants prayed for a period of 18 months to dispose of the existing stock of about 4,000 pieces amounting to Rs. 1.2 crores, Justice Singh granted time till 15th November, 2023 for the stock to be disposed of.

"It is, however, made clear that there shall be no fresh manufacture of the products under the impugned mark. After the said date, none of the products under the mark 'RALLIES' shall be made available in the physical stores or on the e-commerce platforms," the court added.

The matter will now be heard by the roster bench on December 13.

Title: SWISS BIKE VERTRJEBS GMBH SUBSIDIARY OF ACCELL GROUP v. IMPERIAL CYCLE MEG. CO. (PARTNERSHIP FIRM) & ANR.

Citation: 2022 LiveLaw (Del) 1139

Click Here To Read Order