Contentious legal dispute ensues in Delhi High Court as Parle Agro files lawsuit against Pepsi over trademark infringement of the term "Fizz."
In a significant legal battle within India's competitive beverages market, Parle Agro and PepsiCo are locked in a trademark infringement case concerning the use of the term "Fizz" in their respective product branding.
Background
Parle Agro, the Indian food and beverage company, introduced Appy Fizz in 2005 - a sparkling apple juice-based drink with "Fizz" as a prominent part of its branding. The company claims to hold statutory registrations and common law rights for the "Fizz" mark and associated trade dress.
On the other hand, PepsiCo, the multinational corporation, initially used "Extra Fizz" in a descriptive manner alongside the 7up brand. However, Parle Agro alleges that PepsiCo has recently reduced the size of the 7up branding and elevated "Fizz" to a principal position on its packaging, mirroring Parle's branding style.
Legal Proceedings
Parle Agro filed a trademark infringement suit in the Delhi High Court against PepsiCo, seeking to restrain PepsiCo from using "Fizz" in relation to its 7up drink. The case was initially heard by Justice Tejas Karia, with further hearings scheduled for August 18 and then September 4.
PepsiCo maintains that "Fizz" is a generic term for carbonation in soft drinks and cannot be monopolized by a single company. The company argues that descriptive words commonly associated with product categories cannot form the basis of exclusive rights.
Claims and Counterclaims
Parle alleges that PepsiCo's use of "Fizz" infringes upon its trademark rights, creating consumer confusion by mirroring its branding style. Senior Advocate Chander M Lall argued that Pepsi's actions affect the market for Parle's products.
In response, PepsiCo contends that "Fizz" is a generic reference for any aerated drink and thus cannot be owned exclusively by Parle Agro. Represented by Senior Advocate Dayan Krishnan, PepsiCo argues that it has not been served the papers for the suit, and "Fizz" cannot be monopolized by Parle as it refers to any aerated drink.
Upcoming Hearing
The hearing for the trademark infringement case is scheduled for Monday, August 18, before Justice Tejas Karia in the Delhi High Court. This case highlights a significant branding battle in India's competitive beverages market, with Parle Agro aiming to protect its established "Fizz" brand identity.
In the financial sector, both Parle Agro and PepsiCo are investing significantly in their respective legal battles surrounding the trademark infringement case involving the term "Fizz." The business impact of this conflict could influence consumer preferences and market shares within India's competitive beverages industry.
Furthermore, the outcome of this legal proceeding may set a precedent for the future use of descriptive terms like "Fizz" within the product branding of aerated drinks in the industry.
