The Supreme Court on Friday put a stay on a recent Bombay High Court order that had barred a Pune-based restaurant from using the name ‘Burger King’, according to a report by Bar and Bench.
With this stay, the Pune eatery can continue to operate under the disputed name until the High Court issues a final decision.
A SC bench comprising Justices BV Nagarathna and Satish Chandra Sharma said, “The impugned order shall remain stayed. However, the Bombay High Court can continue to hear the appeal.”
Earlier, the Bombay High Court overturned a Pune court’s decision, which had dismissed a trademark infringement lawsuit filed by the US-based fast-food giant Burger King Corporation against the local restaurant operating under the same name.
‘Burger King’ case details
The legal dispute centres around Burger King Corporation, which officially entered the Indian market in 2014, and the Pune-based restaurant, which has been using the ‘Burger King’ name since 2008. The multinational chain argued that the local restaurant’s use of the name was detrimental to its brand reputation and sought a permanent injunction to prevent it from continuing under the same trademark.
In July 2024, a Pune court ruled in favour of the local establishment, citing its earlier use of the name. The court observed that the Pune eatery had been in operation since the early 1990s, whereas Burger King Corporation registered its trademark for restaurant services in India only in 2006. Declaring the Pune restaurant a “prior and honest user” of the name, the court dismissed the US company’s claims.
Challenging this verdict, Burger King moved the Bombay High Court, asserting that it had registered the trademark in India as early as 1979, despite launching its operations much later. Meanwhile, the local restaurant’s legal team maintained that it had been using the name since 1992, predating the US chain’s entry into the Indian market.
Represented by senior advocates Abhishek Manu Singhvi and K Parameshwar, along with advocates Abhijit Sarwate and Anand Dilip Landge, the Pune eatery argued that it had been using the mark long before the US company entered India. They also accused the corporation of ‘squatting’ on the trademark, pointing out that Burger King had initially applied for registration only in relation to paper products, not restaurant services.
HC’s order stayed amid legal battle
Additionally, they contended that an interim stay against a trial court’s decree could have significant repercussions, as the appeal process could take a considerable amount of time.
On the other hand, advocate Aditya Verma, representing the US corporation, asserted that the appeal in the Bombay High Court was progressing swiftly, leaving no justification for staying the High Court’s order. He argued that allowing another restaurant to operate under the Burger King name would confuse consumers.
The apex court, however, granted relief to the Pune-based restaurant, noting that it only operated two outlets in the city, whereas Burger King is a global brand with numerous locations. The court also acknowledged that an interim stay on the trial court’s ruling could negatively impact the affected party. Consequently, it stayed the High Court’s order.
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