Source: Times Of India
LML, a well-known two-wheeler manufacturer, has initiated legal proceedings against Bajaj Auto, alleging unauthorized use of the ‘Freedom’ trademark. The dispute has reached the Delhi High Court, where LML is defending its intellectual property rights over the ‘Freedom’ name. The lawsuit stems from Bajaj Auto’s recent launch of the Bajaj Freedom 125, a new CNG-powered commuter motorcycle. LML contends that this infringes on its established trademark, which was previously associated with its own motorcycle models dating back to 2002.
Background of the Trademark Dispute
LML, which has been a part of the Indian two-wheeler market for decades, had previously launched the ‘LML Freedom’ model in the early 2000s. This motorcycle was a significant success and earned a loyal customer base, contributing to the brand’s goodwill. However, after financial difficulties, LML ceased operations in 2018. In 2021, SG Corporate Mobility Pvt. Ltd. acquired the rights to the LML and Freedom brands with plans to revive the company’s two-wheeler lineup and capitalize on its established brand recognition.
The issue arose when Bajaj Auto introduced the Bajaj Freedom 125 in July 2024 as the world’s first CNG-powered motorcycle. Bajaj’s intention was to cater to the commuter segment by offering a fuel-efficient bike that could operate on both CNG and petrol, targeting customers with an income of ₹40,000 or less per month. The motorcycle comes with a 776cc engine and a dual-fuel system comprising a 2kg CNG tank and a 2-liter petrol tank, providing a range of up to 330 kilometers without refueling.
Legal Allegations by LML
LML argues that Bajaj Auto’s use of the ‘Freedom’ name is an infringement of its trademark rights. According to SG Corporate Mobility, the name ‘Freedom’ was officially assigned to it in 2021, along with all associated goodwill and brand equity built over decades. The company asserts that Bajaj’s use of this name dilutes the established reputation and market recognition of the ‘Freedom’ brand.
In its legal filing, LML claims that Bajaj’s use of the ‘Freedom’ name is likely to cause confusion among consumers, leading them to associate the new CNG motorcycle with the original LML Freedom, thereby infringing on its intellectual property. The lawsuit seeks to restrain Bajaj from using the ‘Freedom’ trademark and aims to safeguard LML’s rights as the legitimate owner of the brand.
Bajaj Auto’s Stance and the Way Forward
Bajaj Auto has not officially commented on the ongoing legal proceedings. However, it is expected that the company will present its case by arguing that the ‘Freedom’ name is a generic term and can be used for different models, especially given the context of the new product being a CNG-powered vehicle with a unique market proposition. Additionally, Bajaj may highlight the fact that LML ceased using the ‘Freedom’ name for a significant period, which could weaken the latter’s claims of ongoing market association.
The Delhi High Court will now have to deliberate on the legitimacy of LML’s trademark claims, the extent of any potential confusion in the marketplace, and whether Bajaj’s actions constitute an infringement of LML’s rights.
Implications for the Market
This legal tussle between two prominent Indian automotive brands could have far-reaching implications for trademark enforcement and brand protection in the auto industry. If LML’s claims are upheld, it may set a precedent for other dormant or legacy brands to challenge the use of their former trademarks by current market players.
On the other hand, if Bajaj Auto prevails, it could open the door for the use of similar brand names by different manufacturers, provided there is sufficient differentiation in the product offerings. The case also underscores the importance of maintaining active use of a trademark to avoid complications related to abandonment or genericide.
What’s Next?
The case is currently being heard in the Delhi High Court, with both parties represented by high-profile legal firms. LML is being represented by the law firm Anand and Anand, which specializes in intellectual property rights, while Bajaj’s legal team is yet to be disclosed. The outcome of this legal battle will be keenly watched by industry observers and may influence future branding strategies for automobile manufacturers in India.
The legal dispute between LML and Bajaj Auto over the ‘Freedom’ trademark reflects the complexities of intellectual property rights in a competitive market. It remains to be seen how the court will rule, but the case has already brought attention to the importance of brand legacy and the legal intricacies involved in protecting it.
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