New Delhi: The World Intellectual Property Organization (WIPO), the United Nations nodal agency for brand protection across the world, has directed a Delhi-based firm against using a domain name www.urbankhadi.com, which illegally used the brand name Khadi. WIPO’s Arbitration and Mediation Center has ruled that the firm Om Soft Solutions, owned by Harsh Gaba, had registered and used the domain name www.urbankhadi.com in ‘bad faith and to gain benefit from the goodwill of Khadi.
Khadi and Village Industries Commission, a statutory body established by Government of India, filed a plea against the Delhi firm for illegally using the word Khadi. In the order, the WIPO ruled it was a systematic attempt by the company to derive unfair advantage, wrongful commercial gains and to mislead the public into believing that its website www.urbankhadi.com was an associate of Khadi India.
“It is evident that the respondent can have no legitimate interest in the disputed domain name…nobody would use the word “Khadi” unless seeking to create an impression of an association with Khadi,” the panel noted. The global intellectual protection rights body ordered the company to transfer the domain name to the Khadi and Village Industries Commission.
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In its order, the panel rejected the company’s arguments that the word Khadi enjoyed no protection and that nobody had an exclusive right to use the brand name Khadi. KVIC Chairman, Vinai Kumar Saxena said the WIPO’s order will bolster Khadi’s fight against violation of its brand name not only in India but also globally.
“KVIC will take all measures to protect the identity and global popularity of Khadi. KVIC has registered the trademark ‘Khadi’ in several countries to prevent any misuse of the brand name Khadi as it has a direct bearing on the livelihood of our artisans. The WIPO’s order will be a deterrent for individuals and firms from illegally using the brand name Khadi,” Saxena said.
Courts bar illicit use of Khadi brand
In recent times, KVIC has won several cases against violation of its trademark Khadi. On June 4, Delhi High Court barred a Ghaziabad-based trader JBMR Enterprises from manufacturing and selling counterfeit Khadi Prakritik Paint. On May 28, Delhi High Court restrained Khadi Design Council of India and Miss India Khadi Foundation from using ‘Khadi’ brand name.
On May 3, an Arbitration Tribunal in Delhi had said that Khadi was not a generic name to be used by private individuals or firms while permanently restraining an individual from using the brand name Khadi. In March this year, the Delhi High Court had also restrained a firm from using the brand name Khadi and the Charkha symbol to sell its products under the name ‘IWEARKHADI’.
So far the KVIC has issued legal notices to over thousand private firms including Fabindia for misusing its brand name and selling products under the name of Khadi. The Khadi and Village Industries Commission has sought damages to the tune of Rs 500 crore from Fabindia which is pending before the Mumbai High Court.
