In Brief
Toyota, the Japanese automobile manufacturer, sued Prius Auto Industries for trademark infringement and passing off of spare parts using the names 'TOYOTA', 'INNOVA', and 'PRIUS'. The trial court granted an injunction protecting all marks. On appeal, the High Court reversed the injunction for 'PRIUS', finding Toyota had not established sufficient goodwill in India before the defendants began using it in 2001. The Supreme Court upheld this, holding that under the territoriality principle, a trademark's global reputation does not automatically translate to rights in another jurisdiction. Toyota must prove goodwill specifically in the Indian market prior to the defendants' use—which it failed to do. The Court also noted Toyota's unexplained delay in filing suit. Appeal dismissed.
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