Swedish Automaker Volvo Wins Trademark Infringement Suit After 30 Years

An Ahmedabad court has restricted a terry towel producer from utilizing the Volvo mark on its products, more than three decades after the Swedish auto major AB Volvo had filed a trademark infringement suit.

This injunction also covers the company's use of the mark for another subsidiary engaged in investment and banking businesses.

Additionally, the court ordered the local firm to pay Rs 1 lakh in nominal damages to the Gothenburg-headquartered automotive manufacturer.

The suit involving trademark infringement was first filed in 1995 against two firms Volvo Finance Limited, and Volvo Terry Industries Limited. The intent behind this move was to make sure companies refrain from using the Volvo trademark and damage the reputation of the global automotive player.

Notably, AB Volvo mentioned that the company registered the Volvo label since 1975 and 1980 across several product classes. Besides vehicles, the company also sells towels and garments, submitting a detailed list of its products to the court. The local company, incorporated in 1992, operated a towel manufacturing unit in Sanand.

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The argument that defendants had used Volvo trademark to hog the global goodwill of this 1927-established Swedish automotive manufacturer was upheld by the Ahmedabad court.

Although the court provided ample opportunities for the defendants to defend themselves, they did not cross-examine any witnesses presented by the automobile company.

The local court ruling read, "In view of the above documentary evidence, it appears that the defendants (local companies) and their promoters deliberately adopted the word 'VOLVO' as part of their business and violated the rights of the plaintiffs which are reserved under the Trade Mark Act, 1999."