Know all about the IndiGo-Tata Motors dispute over trademark

Owner of India's biggest and most profitable carrier IndiGo is embroiled in a trademark dispute over its name with Tata Motors, which sells its flagship sedans under the same brand. This comes at a time when the airline is preparing to launch its initial public offering (IPO) on Dalal Street.

The airline's parent Interglobe Aviation faces an ownership title risk as Tata Motors has claimed that the carrier's use of the IndiGo name is an infringement of its trademark. India's biggest automaker by revenue forayed into sedans under the Indigo brand in 2002 while Interglobe commenced operations in August 2006.

Tata Motors issued notices on the Indigo name infringement in 2005 but Interglobe subsequently registered the trademark. The matter is currently pending in the court with Tata Motors opposing Interglobe's four trade names — IndiGo, IndiGo Airways, IndiGo Airlines, and IndiGo Air.

An Interglobe spokesperson refused to comment citing Sebi's pre-IPO publicity guidelines. The company in its IPO prospectus states that in the event of a failure to register the trademarks, its business may be adversely impacted.

Interestingly, IndiGo is a rival to Tata Motors' sister companies — Tata Singapore Airlines (operator of Vistara) and AirAsia India — which are trying to make a mark in the highly competitive skies.

From a single aircraft, Interglobe, founded by travel entrepreneur Rahul Bhatia and former US Airways chief executive Rakesh Gangwal, had a fleet of 96 aircraft as of April 30, 2015. Its upcoming IPO, expected to value IndiGo airline at $4 billion, is more than five times the current market capitalization of its closest rival, Jet Airways. Tata Motors' sales of Indigo, which is derived from 'India on the go', have been on a decline with the latest figures showing a 28% dip on a month-on-month basis.

In the past too, different companies have used similar names to sell their wares. For instance, Gujarat Cooperative Milk Marketing Federation sells its dairy under the Amul brand while JG Hosiery markets Amul innerwear, which is among the top three brands in its category.

"The legal loophole available to most imitators is that a trademark ownership is only valid per category.

So if a new firm wants to lift your name in a totally unrelated category in which you are not registered, it does not constitute infringement," Ramesh Jude Thomas, president, Equitor, a brand consultancy firm, told TNN.

(Image credits: Indiatimes)