Theos And Theobroma Have Agreed For Suit To Be Decreed As Per Recorded Terms Of Settlement: Delhi HC Disposes Of TM Infringement Suit

The Delhi High Court decreed the trademark infringement suit between Theos and Theobroma after the two companies had reached a settlement.

Justice Prathiba M. Singh observed, “The terms of settlement broadly agreed on 29th July, 2022 by the parties are clear to the effect that “THEOS” and “THEO’S” with the `S’, can be used by the Defendant, for five products. Thus, in the opinion of the Court, there is no ambiguity in this term and the Defendant cannot be restricted from using the mark “THEOS”/ “THEO’S”, in view of the settlement already agreed upon. The said agreed term cannot be re-opened”.

Advocate Kapil Wadhwa appeared for the Plaintiff, and Senior Advocate Rajshekhar Rao appeared for the Defendant.

The dispute arose between two companies producing bakery-related products for the use of Mark ‘Theo’ for their products. The Court had earlier set out the terms and conditions on which the parties agreed to settle their disputes amicably. The said terms and conditions were recorded in the order by the Court. The Parties sought two weeks to file a comprehensive joint application under Order XXIII Rule 3 Criminal Procedure Code (CPC), elaborately setting out the settlement terms.

The Court observed that both parties agreed that the previous judgment could act as a decree for the suit. However, the Court observed that while the mark "Theos" or "Theo's" could only be registered or used in the Delhi-NCR region, this restriction would not limit their legal rights to oppose or take action against any misuse of similar marks in any part of India, except by Theobroma.

The Court held that if Theos received any requests for online supply or deliveries outside the Delhi-NCR region, it would need to use a different name that is not identical or deceptively similar to "THEOBROMA".

The Court acknowledged that Theos has agreed to refrain from using the mark as it belongs to Theobroma. However, Theos can use it in their trading style/name "Theos Food Pvt. Ltd." and "Theos Patisserie & Chocolaterie" in the Delhi-NCR region. Theobroma will restrict the usage of the mark "THEOS"/"THEO'S" on physical menu cards, QR code menu cards, and physical signages to specific food items they offer. This usage will only apply to physical/QR menu cards used at Theobroma's physical outlets and will not extend to their online menu cards.

The Court held that Theos is not permitted to make any online sales outside the Delhi-NCR region under the mark/name "THEOS"/"THEO'S" and must use a different mark if they intend to expand their commercial activities outside the region. Theobroma retains all trademark registrations for "THEOBROMA" and its registered variants and derivatives, including "THEOS" and "THEO." They are entitled to protect and take enforcement and opposition-related actions to safeguard their rights in these names and marks.

Furthermore, the Court also held that Theos is free to register its mark "THEOS"/"THEO'S" in any logo form regarding goods and services offered in the Delhi-NCR region.

Accordingly, the Court decreed the suit on the abovementioned terms.

Cause Title: Theos Food Pvt Ltd & Ors. v Theobroma Foods Pvt Ltd

Click here to read/download Judgment