IP Law

In a significant ruling strengthening procedural safeguards under India’s trademark regime, the Madras High Court has set aside the cancellation of the “SAKTHI” trademark, nearly two decades after it was granted. The court held that the Trade Marks Registry acted arbitrarily and in violation of principles of natural justice by cancelling a valid registration without issuing prior notice or granting an opportunity of hearing.

The judgment offers strong relief to long-standing trademark owners and sends a clear message to administrative authorities: once a trademark is registered, it cannot be undone through shortcuts or unilateral action.

A Trademark Built Over Decades

The dispute revolves around the trademark “SAKTHI”, used by a Tamil Nadu–based trading firm for rice and allied food products. The brand has been in commercial use since the late 1970s and was formally registered under the Trade Marks Act in the mid-2000s. The registration stood renewed and valid for years, forming the backbone of the company’s commercial identity.

After nearly 20 years of uninterrupted statutory protection, the proprietor was shocked to discover that the trademark had been listed as “abandoned” and subsequently cancelled by the Registry. The cancellation stemmed from internal administrative listings related to opposition proceedings, despite the fact that a registration certificate had already been issued long ago.

Crucially, the Registry took this drastic step without issuing any notice to the trademark owner.

Court Finds Cancellation Legally Unsustainable

The Madras High Court examined the record and found the Registry’s action fundamentally flawed.

The court ruled that once a trademark registration certificate is granted, the proprietor acquires a vested statutory right. Such a right cannot be taken away without strictly following the procedure prescribed under the Trade Marks Act. Any challenge to an existing registration must be raised only through rectification proceedings, and not by treating a granted mark as if it were still a pending or abandoned application.

The court was categorical that cancellation without notice is void in law. It observed that the failure to provide the trademark owner an opportunity to be heard amounted to a gross violation of natural justice. On this ground alone, the impugned cancellation order could not survive judicial scrutiny.

Registry’s Conduct Draws Sharp Criticism

The High Court also took note of the fact that the Trade Marks Registry had earlier given an undertaking before the Delhi High Court to withdraw controversial public notices relating to abandoned marks. Despite this assurance, the Registry proceeded to cancel the “SAKTHI” trademark.

The bench held that such conduct not only breached procedural law but also undermined the credibility of statutory authorities entrusted with protecting intellectual property rights.

In firm language, the court clarified that administrative convenience cannot override statutory protection granted to trademark owners.

Clear Contrast: Registered Rights vs Bureaucratic Action

The ruling draws a sharp contrast between two competing realities:

• On one side, a trademark lawfully registered, renewed, and relied upon for decades in commerce.
• On the other, an administrative action that ignored the existence of that registration and bypassed mandatory safeguards.

The court decisively sided with the former, reinforcing that registration is not a temporary privilege but a legally enforceable right.

Order of Reinstatement

Allowing the appeal, the Madras High Court quashed the cancellation order and directed the Trade Marks Registry to restore the “SAKTHI” trademark registration within four weeks.

This reinstatement restores the proprietor’s exclusive rights over the mark and protects it from potential misuse or infringement arising from the erroneous cancellation.

Wider Impact on Trademark Administration

Legal experts say the judgment has far-reaching implications for India’s trademark ecosystem. Over the past few years, brand owners have raised concerns over mass abandonment notices, system-driven cancellations, and lack of transparency in Registry procedures.

This ruling firmly establishes that:

• Registered trademarks cannot be cancelled through administrative listings.
• Due process is mandatory, regardless of how old the registration is.
• The Registry must act strictly within statutory boundaries.

For businesses, especially small and medium enterprises, the judgment provides reassurance that long-standing brand equity will not be wiped out overnight due to procedural lapses.

Conclusion

The Madras High Court’s decision is a strong reaffirmation of rule of law in intellectual property administration. By restoring a two-decade-old trademark and calling out procedural violations, the court has reinforced trust in India’s trademark framework.

At a time when brand value and intellectual property drive business growth, the ruling stands as a reminder that legal certainty, fairness, and due process are non-negotiable — even for administrative authorities.

In a strong message against online fraud and brand impersonation, the Delhi High Court has granted an ex-parte interim injunction in favour of logistics major Delhivery Limited, restraining unknown entities from misusing its trademark, brand identity and franchise name to run fraudulent schemes. The order targets a growing ecosystem of fake websites, emails and phone calls that allegedly duped the public by posing as authorised Delhivery representatives.

The ruling reflects the judiciary’s increasingly firm approach to digital trademark abuse, especially where brand misuse directly harms consumers.

A Case of Digital Deception

Delhivery approached the High Court after discovering that several individuals were falsely representing themselves as the company or its authorised agents. These impostors allegedly used deceptively similar domain names, copied branding elements and official-looking communications to offer fake franchise and distributorship opportunities.

According to the company, unsuspecting individuals were asked to deposit money for franchises, courier partnerships or delivery services that had no connection with Delhivery. By the time victims realised the truth, the money had already changed hands and the perpetrators had disappeared behind digital anonymity.

Delhivery argued that such activities not only caused financial loss to the public but also severely damaged its brand reputation, goodwill and consumer trust built over years.

Court Finds Strong Prima Facie Case

The matter was heard by Justice Jyoti Singh, who found that Delhivery had established a strong prima facie case of trademark infringement and passing off. The court observed that the defendants’ use of the Delhivery name and deceptively similar marks appeared calculated to mislead the public into believing there was a legitimate association with the company.

Given the urgency of the situation and the continuing harm to consumers, the court granted ex-parte relief — meaning the order was passed without first hearing the alleged infringers. Such relief is typically reserved for cases where delay could cause irreparable damage.

Sweeping Injunction and Enforcement Orders

The High Court passed a comprehensive interim order restraining the defendants from using the “Delhivery” mark or any deceptively similar name in any form. This includes usage in domain names, email addresses, websites, promotional material, franchise agreements or business communications.

Beyond a standard injunction, the court issued multiple enforcement-focused directions aimed at cutting off the fraud at its source. Domain name registrars were directed to suspend and lock websites that used infringing domain names. Telecom service providers were ordered to disclose subscriber details linked to phone numbers used in the scam. Banks holding accounts associated with the fraudulent activities were instructed to share KYC details and take steps to freeze or suspend those accounts.

These directions reflect a broader trend in Indian courts, which are increasingly adopting a multi-agency approach to tackle digital fraud rather than limiting relief to paper injunctions.

Why the Ruling Matters

The Delhivery order is significant for several reasons.

First, it highlights how trademark infringement has evolved from physical imitation to sophisticated digital impersonation. Fraudsters today rely on look-alike websites, cloned logos and professional-sounding emails rather than counterfeit goods or storefronts.

Second, the order places consumer protection at the centre of trademark enforcement. The court recognised that such scams primarily target ordinary citizens looking for business opportunities, employment or partnerships. By acting swiftly, the judiciary aims to prevent further financial harm.

Third, the case reinforces that well-known brands have a legal duty — and now judicial backing — to actively protect their trademarks in cyberspace. Failure to act quickly can allow scams to spread and damage brand credibility beyond repair.

Part of a Larger Judicial Pattern

The Delhivery injunction fits into a broader pattern of recent decisions where Indian courts have stepped in to curb fake franchises, recruitment scams and impersonation rackets. Over the past few years, courts have passed similar orders in cases involving food delivery platforms, quick-commerce startups and consumer brands whose names were misused online.

What sets this case apart is the scale of enforcement. By involving domain registrars, telecom companies and banks, the court has shown that online fraud cannot be addressed in silos. Digital scams operate across platforms, and legal remedies must do the same.

Ex-Parte Relief: A Powerful Tool

Ex-parte injunctions are often criticised for being drastic, but courts grant them sparingly. In this case, the court was persuaded that immediate action was necessary to prevent ongoing harm. If the defendants were given advance notice, the fraudulent operations could simply shift domains, phone numbers or bank accounts.

By freezing the infrastructure of the scam, the court ensured that the relief was practical, not merely symbolic.

Implications for Businesses and Consumers

For businesses, the ruling is a reminder to actively monitor brand misuse online and respond swiftly through legal channels. Courts are increasingly receptive to evidence of digital impersonation and willing to grant urgent relief when the facts justify it.

For consumers, the case serves as a cautionary tale. Franchise and partnership offers from well-known brands should always be verified through official websites and communication channels. Courts can intervene, but prevention remains the first line of defence.

What Lies Ahead

The matter has been listed for further hearing, where the court will examine additional evidence and consider whether the interim injunction should be confirmed, expanded or converted into a permanent order. The identification of the individuals behind the scam will also be a key focus as authorities act on the disclosures ordered by the court.

Legal experts believe the case could further strengthen jurisprudence on digital trademark enforcement and set benchmarks for coordinated action against online fraud.

Conclusion

The Delhi High Court’s order in favour of Delhivery sends a clear and timely message: digital impersonation and fake franchise scams will not be tolerated. By combining trademark law with robust enforcement mechanisms, the court has demonstrated how the legal system can adapt to modern forms of fraud.

As online commerce and digital branding continue to expand, such rulings are likely to play a crucial role in protecting both businesses and the public from increasingly sophisticated scams.

A federal trademark battle involving fast-rising AI search company Perplexity AI Inc. has taken a dramatic turn. What first looked like a decisive courtroom victory has now slipped into legal uncertainty. A U.S. judge has withdrawn an order canceling a rival firm’s trademark and reopened a critical question: Did the court have the authority to cancel it at all?

The reversal underscores how procedural law can reshape high-stakes intellectual property disputes. It also highlights the growing pressure on courts as artificial intelligence companies clash with traditional trademark holders over names, brands, and market identity.

A Swift Win, Then a Sudden Stop

In January, Perplexity AI appeared to score a clear win against Perplexity Solved Solutions Inc., a Texas-based software company that held a federal trademark registration for the word “Perplexity.” The court ruled in favor of the AI company after the Texas firm failed to defend its claims once its lawyers withdrew from the case.

The judge found that the trademark registration could be canceled due to fraud and procedural default. For Perplexity AI, the ruling offered immediate relief. It removed a legal obstacle hanging over its rapidly expanding brand and sent a strong signal to competitors and critics alike.

But that victory did not last long.

Days later, the same judge vacated the order. She raised concerns about jurisdiction, questioning whether the court retained the power to cancel the trademark after dismissing the underlying claims. The court has now ordered Perplexity AI to explain why the cancellation should still stand under federal law.

The ruling transformed a clean win into a renewed legal test.

Understanding the Jurisdiction Question

At the heart of the dispute lies a technical but powerful legal issue. Federal courts can only issue rulings when they have clear jurisdiction. If a case is dismissed too early, courts may lose authority to grant additional remedies, including trademark cancellation.

In this case, the judge signaled concern that the court may have crossed that boundary. Even if the trademark was vulnerable, the court must first confirm it had the legal right to invalidate it.

Legal analysts say this move reflects judicial caution rather than doubt about the merits of Perplexity AI’s arguments. Courts are increasingly careful when issuing orders that affect federal trademark registers, especially when one party is absent.

How the Trademark Fight Began

The dispute began when Perplexity Solved Solutions sued Perplexity AI, accusing the startup of trademark infringement and unfair competition. The Texas company argued that Perplexity AI’s name, branding, and online presence caused confusion among customers and violated its registered rights.

Perplexity Solved Solutions, founded years before the AI startup, offers enterprise software tools and collaboration platforms. It secured its federal trademark registration in 2022, years before Perplexity AI became a global name in AI-powered search.

Perplexity AI responded aggressively. It denied confusion claims and countered with a strategy aimed at wiping the trademark off the books entirely. When the Texas firm stopped actively defending the case, the AI company pushed for default judgment.

That strategy initially worked.

Default Judgment vs. Due Process

Default judgments are legal shortcuts with serious consequences. Courts issue them when one party fails to participate in litigation. While efficient, they also raise due-process concerns, especially in cases involving permanent remedies like trademark cancellation.

By vacating the cancellation order, the judge signaled the need to balance speed with fairness. The court must ensure it follows proper legal steps, even when one side stops participating.

This moment illustrates how procedure can outweigh substance. Even a strong argument can collapse if the court lacks authority to act.

A Pattern of IP Pressure on AI Firms

The trademark fight is not an isolated challenge for Perplexity AI. The company has become a central figure in broader legal battles over how artificial intelligence systems use names, content, and data.

As AI platforms grow more visible, they increasingly collide with traditional intellectual property law. Publishers, software firms, and brand owners argue that AI tools blur lines of ownership and attribution. AI companies counter that innovation demands flexibility and transformation.

Perplexity AI sits squarely in that tension. Its business model depends on summarizing, referencing, and synthesizing information at speed. That model has drawn scrutiny not only from trademark holders but also from content publishers and media organizations.

Comparing the Stakes: AI Startups vs. Legacy Brands

The Perplexity dispute highlights a growing divide in the digital economy.

AI-driven startups move fast. They scale globally. Their brands become valuable almost overnight. They often challenge existing IP frameworks and push courts to adapt.

Legacy rights holders, by contrast, rely on formal registrations and established legal protections. They see trademarks as shields against confusion and dilution. For them, enforcement is survival.

This clash creates friction. Courts must now decide how to apply decades-old trademark principles to companies whose products and reach did not exist when those rules were written.

What Happens Next

Perplexity AI now faces a clear task. It must convince the court that it still has jurisdiction to cancel the trademark, even after dismissing the original claims. If the court agrees, the cancellation may be reinstated. If not, the trademark could survive, forcing a new phase of litigation or settlement talks.

The outcome will matter beyond this case. It could influence how courts handle trademark cancellations tied to default judgments. It could also shape how aggressively AI companies pursue brand protection through litigation.

Why This Case Matters

This dispute goes beyond one word or one company. It reflects a legal system struggling to keep pace with technological change. As AI firms reshape markets and language itself, trademark law faces new tests of relevance and reach.

For Perplexity AI, the stakes are immediate. The company must protect its identity while navigating a legal maze. For the courts, the challenge is broader: enforcing the law without stifling innovation.

For now, the name “Perplexity” remains legally unresolved. The court’s next decision will determine whether the AI company can fully claim it—or whether this battle is only just beginning.