The Hindu Business Line : Curbs on Amul, Vadilal to use ‘American Dry Fruits’ trade name for their products

Ahmedabad, June 4 The Gujarat Cooperative Milk Marketing Federation, which sells dairy products under the brand name ‘Amul’, and Vadilal Industries Ltd have been restrained from using the words “American Dry Fruits” for their products by a civil court here.

In an interim injunction, the judge of the court, Mr A.A. Sheikh, has asked Vadilal to pay Rs 5,000 as costs to the the Mumbai-based firm M H Foods Pvt Ltd.

M H Foods has also demanded a compensation of Rs 18 lakh from Vadilal Industries for allegedly continuing to sell its products despite giving assurance not to do so.

Mr Rashmin Jani, counsel of the Mumbai-based firm, submitted that the Gujarat Cooperative Milk Marketing Federation had agreed to exhaust their existing packaging materials containing impugned mark. M H Foods and the cooperative body also agreed that the latter was entitled to use the words “Utterly Delicious Amul Dry Fruits” for its milk and dairy products.

Vadilal came “with dishonest contentions to resist the suit of the plaintiff” and therefore, the injunction was required to be granted, the Mumbai-based firm contended.

When contacted, Mr Rajesh Gandhi, Managing Director, Vadilal Industries Ltd, told Business Line that it was a year-old case and his company had already stopped manufacturing, advertising and marketing of the said brand from June 2008. The company was now taking legal course for compensation, he said.

Producing documentary evidence in its support, M H Foods said the words “American Dry Fruits” had been continuously used for the firm’s products by its founder, the late Mr Hariram Jayram Mevavala Thakkar, since 1932 and later the brand continued to exist as a partnership firm. It markets dry fruits, pickles and sweetmeats, among other products under the brand from the shop “American Dry Fruits Store” which was licensed in 1967.

The Mumbai-based firm said the trade-name gave good-will and reputation to the trademark of company’s various products. This company was promoted and listed with BSE in 1982 and its public issue was subscribed more than 20 times.

On the other hand, Vadilal argued that it markets ice cream and M H Foods dealt in dry fruits. There was, therefore, no possibility of conflicting impression in the customers’ mind. The court held that M H Foods had been using the trade name for over 40 years and was entitled to get interim relief as a first-user of the trade name.

About Vadilal’s argument that the plaintiff had not obtained registration of trademark till date, Mr Sheikh observed that evidence proved that the company had obtained proprietary rights to use trade-name and it cannot be termed as “pirator” of trade-name.

The Mumbai-based firm had issued legal notice in March 2008 to Vadilal when it came to know about the new products being sold with words “American Dry Fruits”. In its response, Vadilal offered to settle the matter out of court, assured to withdraw the words within six months and let the stock be exhausted.

However, M H Foods moved the court demanding Rs 18 lakh as compensation for benefiting from, what it said, was an established brand and for causing damage to its reputation.

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