In Brief
Toyota, the Japanese car manufacturer, sued Prius Auto Industries for passing off and trademark infringement regarding the brand name 'Prius' used for auto parts. Toyota claimed global goodwill in the mark, but had not sold cars in India until 2009–2010. The defendants had registered and used 'Prius' since 2001–2003. The High Court's trial judge awarded Toyota an injunction, but the appellate bench reversed it. The Supreme Court upheld the reversal, holding that trademark rights are territorial: Toyota must prove goodwill specifically in the Indian market prior to the defendants' 2001 use. Widespread international advertising and later availability online did not establish goodwill in India at that time. Additionally, Toyota's unexplained eight-year delay in suing prejudiced the defendants who had used their registered mark openly throughout. Appeal dismissed.
The lawyer headnote and full judgment text are available to registered users.