Image Source: Reuters
Atul Auto Limited has resolved a significant trademark litigation with Exxon Mobil Corporation over the use of the brand name ‘Mobili’ by its subsidiary Atul Greentech Private Limited (AGPL). As per recent disclosures today, Atul Auto agreed to withdraw its trademark application for the ‘Mobili’ brand and settle the dispute by paying one million rupees to Exxon Mobil.
Key Highlights:
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Atul Auto’s subsidiary AGPL will withdraw the ‘Mobili’ trademark application amid the ongoing litigation.
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The company will pay a settlement amount of 1 million rupees to Exxon Mobil Corporation.
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The legal dispute arose due to Exxon Mobil’s claim of trademark infringement over its registered mark ‘Mobil’.
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Atul Auto and AGPL had been restrained by the Delhi High Court from using the ‘Mobili’ brand pending court hearings.
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To address the branding issue, Atul Auto had already rebranded its L5 category electric passenger vehicles to ‘Atul Rik’ to avoid further market disruption.
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Management expects no material financial impact beyond the settlement payment.
Background and Legal Context:
The dispute originated earlier this year when Exxon Mobil filed a trademark infringement suit against Atul Greentech, alleging that the ‘Mobili’ mark used by AGPL was deceptively similar to its well-known ‘Mobil’ trademark. The Delhi High Court had issued an ex-parte injunction preventing AGPL and Atul Auto Limited from manufacturing, marketing, or selling vehicles under the ‘Mobili’ name pending further hearings.
Following the interim court orders, Atul Auto filed appeals and sought to clarify that the goods offered by the two companies were different, but the litigation continued for several months. As a practical solution and to avoid long-term market confusion, Atul Auto shifted its electric vehicle brand from ‘Mobili’ to ‘Atul Rik’, ensuring regulatory approvals and sales channels were updated promptly.
Current Settlement Details:
Today’s announcement marks the closure of the trademark dispute with Atul Auto agreeing to pay 1 million rupees in settlement to Exxon Mobil. In exchange, AGPL will withdraw the ‘Mobili’ trademark application, ending the legal tussle over the brand name. The company’s move to settle avoids protracted litigation and allows it to focus on marketing its electric vehicles under a distinct and compliant brand identity.
Implications for Atul Auto:
The resolution brings clarity to Atul Auto’s branding strategy for its electric vehicle segment and prevents any potential sales disruptions related to the trademark suit. The settlement amount and withdrawal of the trademark application indicate the company’s commitment to compliance and brand differentiation. Market analysts expect this to be a neutral financial event given the modest settlement and continued growth prospects in the electric mobility segment.
This development highlights the increasing importance of clear trademark strategies in India’s growing electric vehicle market and sets a precedent for handling intellectual property disputes in this sector.
Source: Atul Auto’s regulatory filings and court case disclosures.
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