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    Swedish retailer Ikea locks horns over brand name with Varanasi-based fabric maker Ekaya

    Synopsis

    Ikea has objected to a Varanasi-based fabric maker’s brand name Ekaya on the grounds that it can create confusion among its customers

    ET Bureau
    MUMBAI: Swedish retailer Ikea has objected to a Varanasi-based fabric maker’s brand name ‘Ekaya’ on the grounds that it can create confusion among its customers as it sounds pretty similar to its own and urged the Registrar of Trademarks to strike it down.

    The $35 billion furniture and home furnishings company, the world’s largest single-brand retailer, is readying to start its operations in India after it got approval from the Foreign Investment Promotion Board (FIPB) last year to invest about Rs 10,500 crore to build a chain of stores in the country.

    Ikea had challenged the brand name in April last year, saying that its trademark and goods had a strong presence in India and the company enjoyed an international reputation.

    “The impugned trademark (Ekaya) applied for is in all essential respects identical with and deceptively similar to the opponent (Ikea)’s said trademark name,” Ikea said in its notice of opposition. “Even impugned goods specified for in the application are the same description to the same goods and business of the opponent (Ikea).”

    SND & Co, a fabric maker incorporated in 1999, had applied for registration of Ekaya in 2012. The domestic company, which owns high-end ethnic textile showroom in tony localities of New Delhi and Ahmedabad and plans to open its first store in Mumbai, strongly contested Ikea’s notice of opposition to its brand name.

    “I was surprised by the notice since we have been in the business for four generations now, although we initiated to register our brand in 2012,” said Palak Shah, founder of Ekaya. “This is an initiative to promote and revive the dying industry of handloom and hand embroidery. We have a totally different business model,” she added.

    The brand name Ekaya is inspired from Sanskrit language and Atharva Veda, Shah said, adding that it meant ‘with attention’ or ‘unflinching’.

    In its plea, a copy of which has been seen by ET, the textile firm has argued, “If opponent’s contention is taken into account, then by that yardstick, even trademarks and brands such as Nokia, Kaya and Kimaya will be all considered similar and many other words of Indian origin which are in use would be considered similar. This would clearly be in violation of the normal principle of comparison of marks.”

    The saree and ethnic dress material maker has claimed that the word ‘Ekaya’ has been in existence in India much before Ikea started its operations. It has argued in its application that the two companies are in completely different businesses and their logos are also distinct.

    Ikea plans to open 25 stores in India, primarily in the National Capital Region, Maharashtra, Karnataka and Telangana. “We have started talks with representatives of authorities in order to have a better understanding of the states, their future plans and also share Ikea’s business model and needs,” an Ikea spokesman said in an email response.

    The spokesman added that the company sought to resolve all trademark-related disputes amicably, adding that the company had built its brand name across the world over years at a great cost.

    Safir Anand, senior partner at law firm Anand & Anand confirmed that the firm was representing SND & Co in the case, but refused to divulge more details since the matter is sub judice.

    Tina Jain Mehta, founder of branding and design firm Pineapple Consulting said she believed the brand name Ekaya would not hurt Ikea. “Furniture retailer Ikea and ethnic brand Ekaya are in different segments and the target audience is evolved enough to know the difference,” she said.

    However, Mehta added that such disputes were likely to increase as India opened up its market. “As many Indian brands and start-ups are evolving, issues like this may increase as many Indian names derived from Sanskrit and other regional languages will have to deal with certain level of similarity from foreign brands,” she said.


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