2. 2
Swiss multinational Nestle won a protracted trademark dispute over
its popular chocolate brand Kit Kat on Monday. The intellectual
property appellate board (IPAB) in Chennai ruled in favour of Nestle
and dismissed an appeal by Kolkata-based Kit Kat Food Products to
use the same trademark. Earlier, last month Nestle had also won a
trademark lawsuit against Cadbury over their rights to Kit Kat
chocolate bar's four-fingered and three-dimensional shape.
The dispute arose after the trademark registry in Kolkata refused to
allow Nestle's applications filed in 1987 to register the Kit Kat mark
following opposition by a Kolkata firm, which sells snacks made from
cereals. Against the order, Nestle filed an appeal in 2000 in the
Calcutta high court, which was later transferred to IPAB. Meanwhile,
the trademark application filed in 1991 by the Kolkata firm, was also
rejected against which filed an appeal was filed in the IPAB in 2005.
The only reason the Kolkata company gave for adopting Kit Kat was
that it was derived from the word 'chit chat' because the items were
snacks eaten while having a chat.
Given that the competing trademarks were identical, and the class of
consumers were also the same, prior user of the trademark by
Nestle, and an unclear reason for adoption of the trademark by the
Koklata firm were the main thrust in the order, to rule in Nestle’s
favour. There was no dispute about the use of the label by Nestle in
India since 1987. The mark was in use since 1935 outside India and
the company got it registered in 1942. The Kolkata firm had
admitted that it had adopted the mark only in 1991
"…When the reason (for adoption) is not clear, then the
very reason could be that Kit Kat Food Products is trying
to ride upon the goodwill of Societe des Produits Nestle
S.A. The marks are identical, the products are also
similar and they are mainly bought by small children.
When the class of customers is considered, which is the
test to determine deceptive similarity, there is every
possibility of confusion being caused by the user of the
mark by Kit Kat Food Products,…" said the tribunal
3. 3
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