In a legal face-off that hinged more on reputation than labels, the Delhi High Court delivered a clear message: you can’t claim “passing off” without genuine goodwill backing your brand. VIP Industries Ltd., despite having acquired the Carlton name from its overseas parent, found its suit dismissed when judges concluded that goodwill in India remained firmly with Carlton Shoes Ltd.
The bench dug into Carlton’s history, noting its Class 18 registration for the “Carlton” mark back in 1994 and the sustained presence that followed. VIP’s 2004 purchase of Carlton International PLC’s rights didn’t automatically translate into Indian goodwill, the court held, emphasizing that mere title to a foreign mark cannot substitute for reputation built locally.
In overturning VIP’s plea, the court underscored a fundamental tenet of trademark law: goodwill must be proven where the offence is alleged. Without evidence of consumer association in India, the claim crumbled—leaving VIP to reconsider its strategy in a market that rewards local legacy over paperwork.
