'Chaiops' To Become 'ChaiApps' After Chaayos' Trademark Infringement Suit in Delhi High Court

A Ghaziabad-based startup has agreed to change the name of its outlets to 'ChaiApps' from 'Chaiops' after the leading tea cafe chain 'Chaayos' approached Delhi High Court against alleged infringement of its registered trademark.

The change in display boards at the existing 37 physical outlets of MTRM Global Pvt. Ltd. will come into effect from April 1, 2023, according to a settlement arrived by it with Sunshine Teahouse Pvt. Ltd, which has more than 200 cafes across India under the brand name 'Chaayos'.

The suit was filed by Sunshine Teahouse in September seeking permanent injunction restraining infringement and unauthorised use of its trademark by Sunshine Teahouse, which was 'Chaiops' name for its outlets.

Sunshine Teahouse claimed that it was the user of the mark 'CHAAYOS' since the year 2012 and got it registered in 2017. The court was told its outlets sell chai over 12,000 ways, and its tea and other items can also be bought online.

MTRM Global had adopted the mark 'CHAIOPS' for identical products and services which was a violation of its registered trademark, Sunshine Teahouse's suit alleged

While the matter was referred by the court to mediation last month, the proceedings failed. On September 23, further options to settle the dispute were explored before the court. Finally, the parties agreed to settle the dispute on October 12.

Justice Pratibha M Singh in the order dated October 11 noted that it has been finally agreed that MTRM Global, which has its registered office in Ghaziabad, will change its name to 'ChaiApps' from the existing 'Chaiops'. The suggestion was agreed by Sunshine Teahouse. However, there was a dispute regarding the timeline which should be provided to the defendant to enable it to implement the change.

Justice Singh said reasonable time can be granted to MTRM Global.

"The Court then put to the counsels for both the parties as to whether the parties would be satisfied if the Defendant effects the change to its existing centres, physical boards, stationery etc. by 1st April, 2023 and in respect of online platforms and/or any new outlets to be opened, the change would be immediate," the court said.

The terms were acceptable to both parties. Sunshine Teahouse also agreed that it will not object to the use or registration of new mark 'ChaiApps' before any judicial or quasi-judicial body.

"The Defendant shall withdraw their currently pending trademark applications before the Trademark Registry for the trademark "Chaiops" or its variants within one week of this settlement and e-mail the proof of having done so to the counsel for the Plaintiff," the court noted in its order dated October 11.

Case Title: SUNSHINE TEAHOUSE PVT. LTD. v. MTRM GLOBAL PVT. LTD.

Citation: 2022 LiveLaw (Del) 963

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