Brand-aware firms ramp up IPR

Even as conflicts between rival brands increase in India, industry experts find the trend encouraging.

According to them, some recent conflicts signify that companies operating in India are beginning to realise the true value of their brands. In the last few weeks, several cases "� Ajanta versus Colgate; Dabur versus Heinz; Amul versus Cadila "� have come up before the courts or had verdicts delivered over intellectual property rights relating to brands.

Recently, the Delhi High Court upheld the complaint of Colgate-Palmolive against the local consumer goods manufacturer, Ajanta India. The court directed Ajanta to stop using the red and white packaging for its toothpowder cans. It also directed Ajanta to exhaust the stocks of injuncted cans by July-end 2007.

The other two cases related to the infringement of brand properties for using similar brand names. "Because of the intense competitive environment, companies, of late, want to claim a right to their brand equity. Therefore, they want to protect the points that differentiate their brand from that of the competition," said Pranesh Misra, COO, Lowe India.

"Companies operating in India seem to have understood that their strategic brand assets cannot be left alone for abuse," adds Unni Krishnan, managing director, Brand Finance India.

Though the Indian brand battles are nowhere close to the century-old dispute for the Budweiser trademark between the leading American brewer Anheuser-Busch and the Czech company Budejovicky Budvar, a lot of dust has been kicked up in the country on the issue at present.

In some instances, it has gone beyond just copying a brand's trademark and entered the realm of royalty. Experts point out to the Danone-Britannia dispute and the UTI Asset Management versus UTI Bank case.

In the UTI case, UTI Bank had to change its name to Axis Bank following a demand of royalty payment from UTI AMC over the use of the brand name. UTI Bank will have to surrender its rights over the UTI brand in 2008.

In Britannia's case, the company is currently in dialogue with its part-promoters Groupe Danone. The discussions are for Danone paying adequate royalty for usage of Britannia's Tiger biscuit brand.