In a landmark judgment, a Kerala court has slapped a hefty ₹1 crore fine on private dairy company Milnna for illegally imitating the brand identity of the Kerala Co-operative Milk Marketing Federation, popularly known as Milma. The ruling marks a significant victory for the state-run dairy cooperative, reinforcing the importance of trademark protection and consumer trust.
Case Background
The dispute arose when Milma filed a civil suit against Milnna, alleging that the latter had copied Milma’s trademark, including the brand name, packaging style, colour schemes, font, and the distinctive image of a cow. Milma argued that Milnna’s imitation created a likelihood of confusion among consumers, thereby infringing on its intellectual property rights and diluting its brand value.
Milma, established in 1980 and registered under the Kerala Co-operative Societies Act, has cultivated decades of goodwill and market reputation. The court observed that Milma’s brand name, coined in 1983, had attained a high level of consumer recognition across Kerala and beyond.
Court Observations and Verdict
The court held that Milnna’s branding was “deceptively similar” to that of Milma. The judge noted that the visual and phonetic resemblance between the two brands was significant enough to mislead ordinary consumers into believing both products originated from the same source.
The key directives in the court’s verdict included:
Compensatory damages of ₹1 crore to be paid by Milnna for infringing upon Milma’s trademark and damaging its goodwill.
Interest at 6% per annum on the compensation amount from the date of the verdict until the payment is completed.
An additional ₹8,18,410 awarded to Milma as reimbursement for legal expenses incurred during the proceedings.
A perpetual injunction restraining Milnna and its associates from manufacturing, selling, or advertising any dairy products that use trademarks, trade dress, or packaging similar to that of Milma.
Milma’s Response
Reacting to the judgment, Milma Chairman K. S. Mani described the ruling as a “strong message to counterfeiters and imitators” and reaffirmed the organisation’s commitment to safeguarding its brand identity and consumer trust.
“This verdict reaffirms the judiciary’s role in protecting the rights of cooperative societies like Milma that work for the welfare of dairy farmers,” said Mani.
Legal Significance
This case sets a vital precedent for enforcing trademark laws in India, especially for cooperative and public sector entities. It highlights the judiciary’s resolve to prevent unfair business practices and protect consumers from deceptive branding.
The judgment also reinforces the fourfold test of trademark infringement, including:
Similarity of marks (visually and phonetically),
Nature of products/services,
Customer base and trade channels,
Evidence of actual confusion.
In all aspects, Milnna was found to have wrongfully benefited from the well-established identity of Milma.
Disclaimer
It is intended for informational and educational purposes only and does not constitute legal advice. For accurate legal interpretation, please consult a qualified trademark attorney or refer to the original court documents.