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The Legal Affair

Let's talk Law

Delhi High Court Orders Cancellation of Fraudulent Trademark Registration for Korean Beauty Brand

Delhi High Court Orders Cancellation of Fraudulent Trademark Registration for Korean Beauty Brand

Introduction:

The case before the Delhi High Court involved Goodai Global Inc., the parent company of the well-known Korean beauty brand “Beauty of Joseon,” and Shahnawaz Siddiqui, who had registered an identical trademark in India on a “proposed to be used” basis. Goodai Global, a reputed international brand in skincare, had already established its presence in the Indian market when it discovered that Siddiqu had registered an identical mark. The company moved the Delhi High Court, contending that Siddiqu’s mark was fraudulent, as it copied the brand’s name, design, and distinctive elements, which were widely recognized in global markets. Justice Amit Bansal presided over the matter and ultimately ruled in favour of Goodai Global, ordering the cancellation of the impugned trademark because it was deceptively similar to the original and had been registered in bad faith.

Arguments:

The petitioner, Goodai Global Inc., argued that the respondent had no legitimate reason to register the “Beauty of Joseon” trademark in India. It was contended that the brand had been in existence since 2010 and had acquired immense goodwill and reputation worldwide, including in India, by the time the respondent filed for registration. The company submitted that its brand name had become synonymous with high-quality Korean skincare products, and allowing an identical mark to be registered in India would mislead consumers. Furthermore, the petitioner emphasized that the impugned mark was visually, phonetically, and conceptually identical to its original trademark, increasing the likelihood of confusion among consumers. Goodai Global also highlighted that the design of the registered mark was a direct copy of its established branding, including the use of black Hangeul characters spelling “Joseon” and “Mi Nyeo,” accompanied by a red square seal featuring the text “Cracle In.” The petitioner argued that the respondent’s use of these distinctive Korean elements had no legitimate basis, as there was no connection between the term “Joseon” and any individual or place in India. This, they contended, was clear evidence of an intention to misappropriate a well-known international brand’s identity for unfair commercial gain.

On the other hand, the respondent, Shahnawaz Siddiqu, did not file any response to the petition, effectively failing to defend the allegations of fraudulent registration. The absence of a rebuttal from the respondent was noted by the Court as a significant factor in favour of the petitioner. In trademark disputes, a lack of defence often implies an implicit admission of the claims made by the opposing party. The Court, therefore, inferred that the respondent had no legitimate basis to claim ownership over the disputed mark. The silence of the respondent also prevented the Court from considering any possible justification for the adoption of an internationally recognized Korean brand name, further strengthening the petitioner’s case.

Judgement:

Justice Amit Bansal, after considering the submissions and reviewing the evidence, ruled in favour of Goodai Global Inc. The Court found that the mark registered by the respondent was almost identical to that of the petitioner, both in name and design. Given that “Beauty of Joseon” had been in use by Goodai Global since 2010 and had built a significant reputation, the Court held that the respondent’s registration was likely to cause confusion and deception among consumers. The judgment specifically noted that ordinary consumers, who possess average intelligence and imperfect recollection, might mistake the impugned mark for the original brand, thereby leading to an unfair advantage for the respondent. Furthermore, the Court remarked that the adoption of a Korean-language brand name by an unrelated entity in India was highly suspicious. There was no reasonable justification for the respondent to use a mark composed of Korean Hangeul characters, especially when it had no connection to Korea or the beauty industry. This, the Court observed, pointed to an intent to mislead consumers and ride on the goodwill of the established brand. Given these findings, the Court ordered the immediate cancellation of the impugned trademark registered in favour of Siddiqu. It also reaffirmed the importance of protecting internationally recognized trademarks from fraudulent registrations and misuse in India. The ruling serves as a strong precedent for foreign brands facing similar trademark infringements in India, emphasizing that bad-faith registrations will not be tolerated by Indian  court.