The Delhi High Court has granted significant interim relief to quick-commerce giant Zepto, temporarily prohibiting non-banking financial company (NBFC) Naman Finlease and its directors from using the trademarks "Zepto" and "Zepto Finance" in their lending business.
Justice Jyoti Singh issued the ad-interim order in a trademark infringement suit filed by Zepto. The court's decision underscores the importance of brand protection and preventing market confusion.
Court Restrains NBFC's Brand Use
The High Court's directive explicitly bars Naman Finlease from employing the names "Zepto" and "Zepto Finance" until further judicial orders are made. Additionally, the court mandated that the domain name zeptofinance.com must not be transferred to any entity connected with the defendants during the ongoing legal proceedings.
Zepto Alleges Brand Confusion
In its arguments before the court, Zepto asserted its status as the registered owner of both the word mark and device mark "ZEPTO." The company highlighted that "ZEPTO" is a coined term, devoid of any descriptive meaning, and holds no inherent connection to specific services, making it a distinctive brand identifier.
Zepto brought to the court's attention instances where it received legal notices and court summons intended for Naman Finlease's lending business, which operated under the "Zepto Finance" name. This, Zepto argued, demonstrated actual confusion in the marketplace and posed a tangible threat to its established brand reputation and goodwill.
Defendants Lacked Registered Rights
Representing Zepto, Senior Advocate Swati Sukumar emphasized that Naman Finlease did not possess any registered rights for either "Zepto" or "Zepto Finance." While the defendants had a pending trademark application, this did not grant them immediate usage rights. Sukumar urged the court to prevent the defendants' continued use of the disputed marks and to safeguard the zeptofinance.com domain name from transfer while the case progresses.
Next Steps in the Legal Process
After considering the detailed submissions, Justice Jyoti Singh's ad-interim order effectively restrains Naman Finlease and its directors from using the contested trademarks for their lending operations. The court also froze any transfer of the disputed domain name until the next hearing.
The case is scheduled to proceed before the Joint Registrar on August 21, with the High Court slated to hear the interim injunction application on November 30.