Go Air explores legal action against Go Holdings over brand rights

Dispute mentioned in airline's DRHP under 'risk factors'

Go Airlines (India) Ltd (Go Air) is exploring legal options against Go Holdings and one of its promoters and former managing director Jeh Wadia to establish its ownership over all the trademarks and domain names used by the company. The airline mentioned this under “risk factors” in the draft red herring prospectus (DRHP) filed with the stock market regulator on Friday.

Jeh, younger son of Wadia group patriarch Nusli Wadia, has been at the helm of affairs at Go Air since its inception in 2005 and stepped down as its managing director in March. Go Holdings, in which Jeh owns a 99 per cent stake, owns the brand ‘GoAir’ and certain other related trademarks of the airline. 

In March this year, Go Holdings made two applications to the Registrar of Trade Marks for the registration of two word marks used exclusively by the company, namely “Go Airlines” and “www.goair.in”. Further, in April, Jeh made an application to the National Internet Exchange of India to transfer 115 domain names registered in the name of the company from one domain registrar to another domain registrar, namely, Net4India Ltd to Network Solutions.

“Our company is opposing the aforesaid applications and have also applied for the registration of these two word marks in our own name. The company also intends to take necessary steps and pursue legal options to establish its ownership over all the trademarks and domain names,” Go Air said, adding that there was no assurance that the claims would be settled in its favour. However, sources close to Go Air said the issue was irrelevant now as the airline had announced an image makeover and a new name — Go First, positioned as an ultra-low cost airline. This was done just a day before filing the DRHP.

Go Air did not respond to a query on the issue. A person close to the company denied there was any dispute between the promoters or the father and son. According to the DRHP, the company has been using GoAir trademarks since 2004. For years (2006-09 and 2013-14) there were written licence agreements in place between the airline and Go Holdings governing the use of trademarks. At present, there is no written agreement in place with Go Holdings governing the use of these intellectual property rights, it said.

“According to the Sebi ICDR norms, every promoter has to declare whether he/she may have any interest, directly or indirectly, in the business and also declare his/her personal holdings. Accordingly, Jeh Wadia declared that the registrations of trademarks, logo and associated trademarks and service marks are owned by Go Holdings, in which he presently holds 99 per cent of the equity share capital,” a person close to the airline said.

“The company believes that as Go Airlines, we are the owners of these trademarks, logo and associated trademarks. Therefore, the necessary disclosures were required in the DRHP as is the norm. As you are aware the rebranding of the airline as Go First has already been initiated before the DRHP and hence going forward, this issue of IPR is irrelevant and there is no impact on the business,” he added.

However, people who have worked with Go Air pointed out that the Go brand was established by Go Holdings with a plan that multiple businesses would be established around the brand. “The plan was to establish an array of businesses with the Go brand, of which Go Air was the first business. As the airline became successful, the Go brand became stronger,” the person said. The Go brand was established on February 16, 2005. The website www.goair.in was registered on April 28 that year. "It shows the Go brand predates Go Air," the person said.  Lawyers have mixed views about Go Air’s move to pursue legal options. “The trademark is registered with Go Holdings and it has licensed it to the airline. So it’s not clear how the airline can claim its ownership,” a lawyer said.

However, another lawyer said that it was imperative for Go Air to claim the brand ownership. “It is essential for Go Air to establish the ownership of the brand for the purpose of valuation in an IPO. Though there is no valid licence between Go Holdings and the airline (except an implied licence as claimed), the airline needs to establish an unambiguous title to the intellectual property rights in pursuance of its claims of prior use and developing of the brand,” the lawyer said. He added it was also necessary for the airline to secure title and ownership of the trademarks/brand names, as in the past it has filed multiple cases claiming ownership of the marks and the brand.