WIPO bars Delhi-based firm from using brand name 'Khadi'

WIPO is a United Nations agency for brand protection across the world. 

The administrative panel of WIPO's arbitration and mediation center has ruled that the firm -- Om Soft Solutions -- owned by one Harsh Gaba, had registered and used the domain name 'www.urbankhadi.com' in ''bad faith'' and to gain benefit from the goodwill of 'Khadi' brand, the MSME ministry said in the statement. 

The panel's order came on a petition of Khadi and Village Industries Commission (KVIC) against the company which was indulging in the business of garments by misusing the brand name 'Khadi'. 

KVIC is the owner of several Khadi trademark registrations. It is also the owner of trademarks 'Khadi' and 'Khadi India'. 

It said that WIPO's order will bolster Khadi's fight against violation of its brand name not only in India but also globally, adding that it will take all measures to protect the identity and global popularity of Khadi. 

''The panel lent credence to KVIC's contentions that it was a systematic attempt by Mr Harsh Gaba to derive unfair advantage, wrongful commercial gains and to mislead the public into believing that 'www.urbankhadi.com' is an associate of Khadi India,'' the statement said. 

''It is evident that the respondent can have no legitimate interest in the disputed domain name… nobody would use the word 'Khadi' unless seeking to create an impression of an association with Khadi,'' the ministry said quoting the panel. 

The panel has ruled that the disputed domain name be transferred to KVIC. 

The ministry said the panel categorically rejected the arguments of the company that the word 'Khadi' enjoyed no protection and that nobody had an exclusive right to use the name. 

On June 4, the Delhi High Court had barred a Ghaziabad-based trader JBMR Enterprises from manufacturing and selling counterfeit Khadi Prakritik Paint. Similarly on May 28, the court had restrained 'Khadi Design Council of India' and 'Miss India Khadi Foundation' from using 'Khadi' brand name. 

On May 3, an arbitration tribunal in Delhi had said that 'Khadi' was not a generic name to be used by private individuals or firms while permanently restraining an individual from using the brand name. 

In March this year, the Delhi High Court had restrained a firm from using the brand name and the Charkha symbol to sell its products under the name 'IWEARKHADI'. 

''KVIC in the last few years has acted tough against such violators. So far, KVIC has issued legal notices to over 1,000 private firms including Fabindia for misusing its brand name and selling products under the name of Khadi,'' the ministry said. 

KVIC has sought damages to the tune of Rs 500 crore from Fabindia which is pending before the Mumbai High Court, it added.