Case Title: Theos Food Pvt Ltd & Ors v. Theobroma Foods Pvt Ltd
A settlement over the use of the THEOS/THEO trademarks was achieved between the two well-known confectionery companies.
In a trademark dispute with Theobroma before the Delhi High Court, confectionery company Theos has agreed to restrict its services for items carrying the THEOS mark to the Delhi-NCR region. The Court also stipulated that Theobroma is allowed to increase the number of its stores around the nation. Justice Prathiba M. Singh said, "In recognition of the parties' mutual agreement to negotiate a settlement, Theobroma is free to expand its outlets under the mark/name ‘THEOBROMA’ across the country. However, Theos shall be restrained to the Delhi-NCR region, insofar as its goods and services provided under the mark/name ‘THEOS’/‘THEO’S’ is concerned."
Theobroma had first objected to Theos using the mark "THEOS" or "THEO'S," but the Mumbai-based confectionery company allowed it as long as Theos limited its operations to the Delhi-NCR region, according to the court.
"Theos shall be free to register its own mark ‘THEOS’/‘THEO’S’ as a word mark or in any logo form thereof and use the same only in respect of goods and services offered in the Delhi-NCR region," the Court recorded.
Theos was additionally instructed not to do any online business outside the Delhi-NCR region using the aforementioned mark or name. According to the Court in this respect, "If it (Theo's) intends to extend its commercial activities outside the Delhi-NCR region, either in physical or in online mode, the same shall be done under a mark/name which is neither identical nor deceptively similar to ‘THEOBROMA’."
However, the Court also ruled that Theos was permitted to use a prefix or a suffix in addition to its mark or name for expansion, as long as the mark or name overall was not identical or misleadingly similar to Theobroma and did not cause confusion. Theobroma should continue to have all of its trademark registrations for "THEOBROMA" and its registered variations and derivatives, including "THEOS" and "THEO," according to the Court's ruling. The rights to these names and marks belong to Theobroma, who is allowed to defend them and take any enforcement- and opposition-related measures.
The parties agreed that Theobroma would limit the use of the mark "THEOS"/"THEO'S" on social media, physical, and online menu cards, and signage to the following five food products it offers, along with variations of each:
1. Theos Dutch Truffle Cake
2. Theos Chocolate Mousse Cup
3. Theos Mava Cake
4. Theos Dense Loaf
5. Theos Quiche
The Court made it clear that the aforementioned utilisation of the mark shall only be on menu cards used at Theobroma's physical locations and shall not apply to its online menu. Last but not least, the Court established some rules that both parties must adhere to in order for the terms of the settlement to be implemented effectively. For example, "Neither party shall oppose each other's marks or object to the same, in any manner, so long as the same is in compliance with the terms of this settlement."
The Court made the significant observation that any disagreements between the parties will be settled.