No Automatic Right For Group Companies To Enforce Trademark Rights

In a recent decision, the Delhi High Court dismissed a trademark and copyright infringement suit filed by Coromandel Indag Products India Limited (CIPL/Plaintiff) against Sumitomo Chemical Company Limited (Sumitomo) and another defendant, ruling that CIPL lacked the legal standing to pursue the action. The dispute centred on the use and rights over the trademark "PADAN," originally registered and owned by Sumitomo or its predecessor, and licensed non-exclusively to Coromandel Agrico Private Limited (CAPL), a group company of the Plaintiff which is currently under corporate insolvency resolution.

Background of the Dispute

1. CIPL, incorporated in 1983 and engaged in the agrochemicals business, claimed to be the parent company of the Coromandel Group, which also includes Coromandel Agrico Private Limited (CAPL), and Agrimas Chemicals Limited.