MUMBAI: The Supreme Court on Friday granted e-commerce major Flipkart eight weeks to clear its inventory of MarQ-branded electronic items, while refusing to interfere with earlier orders passed by lower courts and the Delhi High Court in the trademark dispute.
A two-judge bench comprising Chief Justice of India Surya Kant and Justice Joymalya Bagchi observed that the two marks appeared “substantially similar”, including in pronunciation and overall commercial impression. The bench declined to interfere with the Delhi High Court’s 10 April order.
“They are similar class goods. This law is clear…We won’t allow similar or dissimilar or deceptively similar marks in this sort. It will create confusion,” the bench observed. “We are not inclined to interfere in the interim orders passed by the trial court as well as the high court.”
Senior counsel Rajshekhar Rao, appearing for the e-commerce company, told the court that Flipkart was willing to fully rebrand and sought time to exhaust existing inventory and pipeline stock.
Justice Bagchi, however, criticized Flipkart for continuing to sell the products despite earlier court directions. Referring to a 2018 Delhi High Court order allowing the company to clear existing stock, he said, “You have been unfair. Delhi High Court permitted you to sell stocks in 2018 of the existing stocks. Thereafter, notwithstanding an injunction, you decided to prepare and brand products in offending MarQ. That’s your risk and cost.”
In an attempt to resolve the matter, Flipkart urged the Supreme Court to explore mediation and proposed using modified variants or alternate stylised versions of “MARQ by Flipkart”.
Marc Enterprises opposed the proposal. Senior advocate Akhil Sibal told the court that the parties had already undergone mediation proceedings multiple times before the Delhi High Court, but no settlement had been reached.
Emailed requests for comment sent to Flipkart remained unanswered at press time.
In an order on 10 April, Justice Tejas Karia of the Delhi High Court had upheld an injunction against Flipkart, holding that “MarQ” was deceptively similar to “MARC”, and allowed the company time until 15 May to clear existing inventory.
What led to the dispute?
The dispute dates back to 2018, when Marc Enterprises approached a Delhi trial court seeking an injunction against Flipkart’s use of the “MarQ” trademark. The trial court restrained Flipkart, prompting the company to move the Delhi High Court.
In January 2018, Justice Najmi Waziri allowed Flipkart to sell its remaining “MarQ”-branded inventory until 30 January and advertise the products during its Republic Day sale, subject to maintaining accounts of those sales.
Flipkart launched MarQ in 2017 as a private label spanning televisions, air conditioners and washing machines, positioning it as a global electronics brand. Then chief executive Kalyan Krishnamurthy had said the company aimed to offer “cutting edge technology and high quality products at very affordable prices”.
Marc Enterprises, established in 1984, sells electrical products in similar categories.
The dispute comes as Flipkart prepares for a potential public listing. According to a Bloomberg report, the company has held informal discussions with investors and could launch an IPO as early as 2027.