Auto giant wins case, towel maker barred from using ‘Volvo’ mark

Despite being given ample opportunity to defend itself, the local company did not cross-examine any of the witnesses presented by the automaker.

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An Ahmedabad court has prohibited a terry towel manufacturer from using the mark ‘Volvo’ on its products, 30 years after Swedish automotive giant AB Volvo filed a suit alleging trademark infringement.

The company has also been barred from using the mark for a subsidiary engaged in investment and banking businesses. In addition, the court ordered the local firm to pay nominal damages of Rs 1 lakh to the automaker.

AB Volvo had filed the suit in 1995 against Volvo Terry Industries Ltd and Volvo Finance Ltd, seeking to restrain them from using the ‘Volvo’ name in any form. The company argued that the defendants had deliberately adopted the name to exploit the brand’s global reputation and goodwill. It submitted the ‘Volvo’ brand had been registered since 1975 and 1980 across different product classes. The company also sells towels and garments.The local company was incorporated in 1992 and manufactured towels at a factory in Sanand. AB Volvo accused the firm of passing off its products by using its well-known brand name. Despite being given ample opportunity to defend itself, the local company did not cross-examine any of the witnesses presented by the automaker.

Ruling in favour of AB Volvo, the court said: “In view of the above documentary evidence, it appears the defendants (local companies) and their promoters deliberately adopted the word ‘Volvo’ as part of their business, and violated the rights of the plaintiffs reserved under Trade Mark Act, 1999.”