ARTICLE · 22 JUNE 2022

ITC Limited vs. Nestle: ‘Magical' Trade War

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ITC Limited (‘Plaintiff') and Nestle India Ltd. (‘Defendant') have been in dispute due to the usage of the term ‘Magic/Magical Masala' for instant noodles by the defendant.

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Prayank Khandelwal

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Facts

ITC Limited ('Plaintiff') and Nestle India Ltd. ('Defendant') have been in dispute due to the usage of the term 'Magic/Magical Masala' for instant noodles by the defendant. The conflict had arisen in 2013 between the Fast-Moving Consumer Goods (FMCG) companies: ITC Limited (hereafter "ITC") and Nestle India Limited (hereafter "Nestle"). It was alleged that Nestle's adoption of the phrase 'Magical Masala' for the purpose of marketing its instant noodles was phonetically similar to the phrase 'Magic Masala' that was utilised by ITC for their instant noodles namely, 'Sunfeast Yippee! Noodles'. Following which ITC filed the present suit against Nestle for passing off. The court had to focus on the cardinal objective whether exclusive claim over ordinary words like Magic and Masala can be made either alone or in combination.

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