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Informist, Tuesday, Nov. 25, 2025

 

NEW DELHI – The Delhi High Court has restrained Pelican Tobacco Co. Ltd., its directors and its properties from using the name, trade dress and labels similar to ITC Ltd.'s 'Gold Flake' trademark, till the main suit filed by the latter was decided. Pelican Tobacco has replicated all essential features of ITC's marks and labels, said the high court. "The defendants' minor variation, substituting 'K' with 'M' to form 'Gold Flame' from 'Gold Flake' does not make the competing marks dissimilar. Cigarettes are purchased by all classes of consumers and when sold loose, the consumers may not check the exact spelling before purchasing the infringing product," said the court.

 

The word 'gold' has nothing to do with cigarettes in normal context, it is ITC which started using this word with respect to cigarettes, said the court. ITC has acquired substantial goodwill in the 'Gold Flake' mark and the Madras High Court in 2018 has also declared it as a well-known mark. "The use of the word 'Gold' has become indelibly associated with the plaintiff's product and thereby the mark 'Gold' has acquired a secondary meaning within the cigarette industry," said the court.

 

ITC has been using 'Gold Flake' as a composite mark for over a 100 years and has built a reputation and a market for its products. Considering the overall similarities between ITC's marks and Pelican Tobacco's marks, the plaintiff is entitled to protection of its marks, the court said.

 

ITC has demonstrated the goodwill and reputation acquired by its marks, said the court. ITC has earned a considerable revenue of INR 401.86 billion for 2023-24 (Apr-Mar) from the sales of its products under the 'Gold Flake' trademark. Pelican Tobacco's use of 'Gold Flame' mark is dishonest and is nothing but an attempt to ride the goodwill and reputation of ITC's marks so as to cause confusion in the market, the court added.

 

The petitioner had argued that the defendants had replicated all essential features of its trademark and labels. Pelican Tobacco's minor variation – substituting 'K' with 'M' to form 'Gold Flame' from 'Gold Flake - is a superficial change that does nothing to dispel confusion or deception, said ITC. Pelican Tobacco's adoption is not innocuous but a deliberate act to ride upon the goodwill and reputation of ITC's marks and to create an injurious association in the minds of consumers that the infringing products are related to ITC's products, said the petitioner.

 

At 1150 IST, shares of ITC were down 0.2% at INR 402.90 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Surya Tripathi

Edited by Tanima Banerjee

 

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