Inter IKEA Systems BV v. IKEY Home Studio LLP

Case Name: Inter IKEA Systems BV v. IKEY Home Studio LLP

Pronounced on: 18th December 2024

Parties: 

Plaintiff: Inter IKEA Systems BV (owner of the well-known IKEA trademark, in use since 1943) 

Defendant: IKEY Home Studio LLP (Indian business selling home furnishing goods under the name “IKEY”/ “IKEY Home Studio”) 

Brief Facts:

The world-renowned brand name IKEA is a trademark registered by Inter IKEA Systems BV. This home furnishing giant is the owner with the right to use the said name legitimately since 1943 in uninterrupted and all-pervading use.

In 2023, IKEA found out that an Indian company, IKEY Home Studio LLP:

• Applied five times to register the trademark with the designation IKEY under the various classes (11, 19, 20, 21 and 35) which are related to the goods such as tiles, sanitary ware, furniture etc.
• Has opened a showroom at the name of IKEY Home Studio in India.
• Maintained an Internet site through www.ikeyllp.com under the name/logo IKEY.

A cease and desist notice was given by IKEA, but this was not followed. A denial of similarity and ill intent was answered by IKEY.

IKEA requested an interim injunction in a trademark passing off and infringement lawsuit that was filed with the Delhi High Court.

Issues:

Infringement of Trademark (Section 29 of the Trade Marks, 1999):

Whether the mark IKEY, is similar to the famous mark IKEA and that it will create confusion among the consumers?

Passing Off:

Whether IKEY Home Studio is attempting to ride the gravy train on the name and reputation that IKEA has earned, to their advantage?

Bad Faith Trademark Application and Domain Abuse:

Whether the registration in the domain ikeyllp.com and in several classes shows an intention to mislead and dishonest action.

Applicable Statute: 

The Trade Marks Act, 1999 (India)

Ratio Decidendi (Reasoning of the Court)

Similarity of Marks:

The court accepted that that IKEY and IKEA are both visually, phonetically, and structurally similar and are likely to mislead or even confuse the consumers into a state of association or affiliation with IKEA.

Well-Known Mark Status:

India is one of the more than hundred countries where the IKEA trademark is registered, and it has become well-known worldwide. Even outside of its product category, it has sufficient protection as a respectable trademark.

Baselessness and Other Intentions: 

The court pointed out that the showroom concept, online presence, and the resemblance in the mark adoption of “IKEY” could not be a coincidence. This was done on purpose to take advantage of IKEA’s generosity.

Convenience balance: 

IKEA had an edge. It would seriously harm IKEA’s brand if they continued to use it.

Irreparable Loss: 

IKEA’s distinctiveness and global identity would be harmed, and even monetary compensation would not be sufficient to repair it.

Order of Court (Interim Relief granted)

The Delhi High Court gave an ex-parte ad-interim injunction including:

Immediate Restraint:

IKEY Home Studio LLP, its partners and any affiliate were prohibited from utilising:

• The label of IKEY or
• Any other counterfeit resembling (IKEA) in any way in association with goods/services, signages, branding, advertisements, trade, packages, online sites, imports, or exports.

The suspension of the Domain Name is:

The website www.ikeyllp.com was directed to be taken down. The domain registrar was directed to disclose ownership and take action in accordance with the court’s directives.