India Business Law Journal – April 2024

Nothing butter chicken recipe?

Think again. Culinary titans are at loggerheads

When Kundan Lal Gujral, the founder of the popular restaurant Moti Mahal, first prepared murgh makhani (butter chicken) in the 1920s, little did he know that his enduring legacy would become the focal point of a contentious heritage dispute almost a century later with the family of his business partner, who now run the restaurant Daryaganj.

The crux of the lawsuit is not on the recipe’s origin, but on Daryaganj’s use of the tagline “By the Inventors of Butter Chicken and Dal Makhani”. Moti Mahal alleges misrepresentation and seeks to halt its use, thus sparking a legal battle over trademark rights.

Our Cover story looks at the ongoing trademark dispute between these culinary titans with each vying for recognition as the inventors of the world-famous butter chicken dish. Beyond the courtroom drama lies a deeper narrative of identity, tradition and the enduring essence of Indian cuisine.

The case highlights conflicting narratives and the significance of culinary legacy in brand identity. Moti Mahal questions Daryaganj’s association with its predecessor’s heritage, while Daryaganj defends its right to claim a shared lineage.

Amid legal intricacies, culinary experts stress that taste, not origin, defines a dish’s essence. Regardless of the outcome of the courtroom drama, one thing is certain, that the enduring popularity of butter chicken will not diminish.

From culinary disputes we move to apprehending counterfeiters with a theme centring around different facets of intellectual property (IP). India has been home to a growing number of startups and Indian brands, and this has given rise to a counterfeit market that is one of the biggest in the world.

Busting the counterfeiters, provides an in-depth look at IP search and seizure operations in India, focusing on combating counterfeiting and IP infringement challenges.

India’s technological advancement and growing markets have spurred a surge in counterfeit goods, exploiting reputations of established brands. Relevant legislation like the Copyright Act, 1957, underpins the legality of raids, emphasising evidence gathering and court orders.

Co-ordination among law enforcement, rights holders and global entities is vital for successful IP raids to prevent counterfeit goods’ transfer. Unlike other raids, IP rights holders’ direct involvement in planning is pivotal.

Challenges include locating infringement sites and maintaining confidentiality, which necessitates careful planning and execution. Legal recourse includes civil and criminal actions, each with distinct processes and implications. Successful raids deter infringement, protect IP rights, and underscore the need for ongoing vigilance.

In Victory for SEPs, our Intelligence report touches on the finer details of the court battle over the unlicensed use of Swedish telecom company Ericsson’s standard essential patents (SEPs) by the Indian smartphone maker Lava.

The ruling favoured Ericsson, with Delhi High Court judge awarding the company damages of USD29.29 million, the highest damages awarded in any patent or IP-related matter in India to date. Ericsson was also granted a royalty rate of 1.05% on the net sales value of smartphones sold by Lava from 1 November 2011 to 8 May 2020, along with 5% annual interest until the amount was paid along with the costs of the lawsuit.

Lawyers say the landmark judgment underscores India’s recognition and protection of IP rights, affirming its position as a jurisdiction where such rights are upheld. The ruling sets a precedent for SEP cases and patent litigation, shaping the landscape for future disputes and emphasising the importance of fair and constructive negotiation in resolving IP conflicts.

As the dust settles on this groundbreaking decision, it is clear that the implications extend far beyond this specific case, impacting the broader framework of patent infringement suits and compliance in India’s rapidly evolving tech landscape.

Our Vantage point provides an overview of the challenges and developments in the enforcement of foreign arbitral awards in Arbitration: A global game.

The author, senior advocate Satvik Varma, underscores the importance of aligning India’s legal framework with global standards to enhance investor confidence and establish the country as a preferred arbitration destination.

Is there a practicality to India’s ambition to become a global hub for international arbitration? The article aligns this question with the growing number of arbitration agreements in international commercial contracts, and discusses challenges faced due to judicial intervention, particularly the interpretation of “public policy” as grounds for refusing enforcement. It traces the evolution of judicial interpretation from broader to narrower constructions of public policy and emphasises an approach favouring minimal judicial intervention as per the New York Convention.