Zepto wins interim trademark battle as Delhi High Court restrains NBFC's use of brand name

The Delhi High Court has granted interim relief to quick- commerce platform Zepto, temporarily restraining non- banking financial company (NBFC) Naman Finlease and its directors from using the trademarks "Zepto" and "Zepto Finance" in their lending business in a trademark infringement dispute. The order was issued by Justice Jyoti Singh in a suit filed by Zepto, represented by Senior Advocate Swati Sukumar.

Court grants relief

The High Court prohibited the defendants from using the marks "Zepto" and "Zepto Finance" until further orders. It also ordered that the domain name zeptofinance. com must not be transferred to any entity associated with the defendants during the proceedings, according to LiveLawBiz.

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Zepto claims brand confusion

In submissions before the court, Zepto stated that it is the registered owner of the word mark and device mark "ZEPTO, " describing it as a coined term with no descriptive meaning or connection to any specific service.

The company told the court it discovered the alleged infringement after receiving legal notices and court summons that were actually meant for the defendants' lending business operating under the name "Zepto Finance." Zepto argued that this indicated actual marketplace confusion and risked harming its brand reputation.

Defendants have no registered rights

Representing Zepto, Senior Advocate Swati Sukumar argued that neither "Zepto" nor "Zepto Finance" was registered in favour of the defendants, though they had filed a pending trademark application.

She urged the court to prevent the defendants from using the disputed marks and also requested an order to stop the transfer of the zeptofinance. com domain while the case is pending, according to LiveLawBiz.

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High Court accepts prima facie case

After reviewing the submissions, Justice Jyoti Singh issued an ad-interim order restraining Naman Finlease and its directors from using the trademarks "Zepto" and "Zepto Finance" for their lending activities. The court also blocked any transfer of the disputed domain name until the next hearing.

The case will now proceed before the Joint Registrar on August 21, with the High Court hearing the interim injunction application on November 30.