India: ‘Appy Fizz’ v. ‘Fizzy Apple’ – Parle Agro Pvt. Ltd. v. Walmart India Pvt. Ltd. & Ors.

It is uncommon for Indian local businesses to successfully challenge foreign corporations in India for trademark infringement. But recently, exactly that occurred: Parle Agro Pvt. Ltd. ("Parle") sued Walmart India Pvt. Ltd. and Ors. ("Walmart India") in the Bombay High Court for infringing upon its trademark/trade dress when it introduced misleadingly similar packaging and began selling an apple-flavored beverage called "Fizzy Apple."With a market share of over 90%, Parle, a well-known beverage firm with its headquarters in Mumbai, now dominates the sparkling juice industry and offers consumers an alternative to other carbonated, sugary, and sweetened beverages. The world's largest retailer, Walmart Inc., which is recognized for its efficiency and knowledge in logistics, supply chain management, and sourcing, entered India in 2007, however, Walmart India is a completely owned subsidiary of Walmart Inc.

Under the name "Fizzy Apple," Walmart India began marketing, creating, and dispensing a beverage with an apple flavor. The container is pictured below on the right. Based on its trademark "Appy Fizz" registered for a variety of fruit-based beverages as well as its trade dress, Parle filed a lawsuit for an infringement at the Bombay High Court. Their item appeared as seen in the left-hand image below.

The apple drink sold by Walmart India under the name "Fizzy Apple," according to Parle, used a product label and packaging that were both identical and misleadingly similar to their own. Parle claimed that Walmart India was trying to take advantage of its longstanding reputation and goodwill in order to make unjustified profits. It is apparent that the defendants are attempting to sail as close to the wind as possible and have made every effort to get as near to "Appy Fizz," according to the Parle family attorney. Walmart India stated that since the word "Fizzy" is a widespread descriptor, no one should be able to assert a monopoly over it. However, this defense was unsuccessful: On July 9, 2020 (through video conferencing), Judge B. P. Collabawala's single bench, following a thorough examination of the submitted reasons, ordered an interim injunction preventing Walmart India from selling the disputed product pending further orders. The Hon'ble Judge further made it plain that this injunction was simply a temporary arrangement and that the merits of the case had not been decided. Recently, Walmart India agreed not to use the company's label for its apple drink in an undertaking that was recorded before Judge KR Shriram. The interim application submitted by Parle was therefore dismissed.

Legal conflicts involving trademark infringement have become more common in recent years. The number of David vs. Goliath battles seems to be increasing. Parle successfully defended its popular brand in this instance. Also, its success raises awareness of passing off and finding the correct balance. This may help to rekindle the nation's awareness of trademark law during these trying times.