Trademark integrity upheld: Delhi HC’s relief granted to KVIC in case of ‘Khadi by Heritage’

In a significant decree reinforcing the sanctity of trademarks tied to public trust and national identity, the Hon’ble High Court of Delhi granted an interim injunction in favor of the Khadi & Village Industries Commission (KVIC) in its courtroom clash against ‘Khadi by Heritage,’ a private entity trading under the name.

The dispute

KVIC, a statutory body established under the Khadi and Village Industries Commission Act, 1956, is the registered owner of the word and logo marks KHADI, including the Charkha logo, a well-known trademark. These marks represent more than just a brand; they are linked to India’s self-reliance movement and grassroots economic revival, which carries historical significance.

KVIC claimed that the Defendants, operating under the name ‘Khadi by Heritage,’ were using branding similar to KVIC to promote and sell medical products such as masks, hand sanitizers, PPE kits, and fireballs, particularly during the coronavirus pandemic. Their promotional material, website, and packaging allegedly created a false association with KVIC by carrying the Charkha logo and the KHADI mark.

KVIC’s concerns

KVIC raised two key issues:

1. Infringement of Trademark: The use of KHADI and the Charkha logo without authorization violates KVIC’s registered rights under the Trademarks Act, 1999.
2. Public Safety and Misrepresentation: KVIC emphasized that the Defendants’ products were not subject to the rigorous quality controls and standards maintained by the Commission. This posed a serious risk to public health and threatened to damage the credibility associated with the Khadi brand, particularly in the context of pandemic-related medical goods.

The court’s ruling

After reviewing the submissions, the Delhi High Court ruled in KVIC’s favor, noting a prima facie case of infringement. The court observed that the Defendants’ actions misled the consumers and were unlawful. Such actions could also give a false interpretation of believing that their products were endorsed or certified by KVIC.

Significantly, the court held that such misrepresentation could have serious public health consequences in the context of essential medical products. And accordingly, the court passed an interim injunction, restraining the Defendants and all associated parties from:

• Using the trademark KHADI BY HERITAGE, the Charkha logo, or any other deceptively similar marks;
• Manufacturing, selling, or promoting any products bearing the infringing branding;
• Operating under the corporate or trading name ‘Khadi by Heritage Pvt. Ltd.’ or similar variants;
• Using any domain name or website that creates an impression of association with KVIC.

Why this matters

This case is more than a routine trademark dispute. It illustrates how intellectual property rights intersect with public interest, particularly during times of crisis. The judiciary’s swift intervention underlines the courts’ responsibility to protect brand integrity and consumer trust, especially when a name carries national and cultural weight.

It also serves as a reminder to businesses, especially in emerging sectors like health, wellness, and traditional goods, that using government-associated branding without authorization is risky and potentially unlawful.

Final note

At a time when the demand for wellness and traditional products is surging and many small enterprises are leveraging nationalistic branding, the line between inspiration and imitation must be carefully respected. KVIC’s assertiveness in defending its marks should encourage other statutory bodies and brand custodians to proactively protect their intellectual property.

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