Delhi High Court Sets Aside Trademark Refusal of Mark for Ayu Lifescience Over Flawed Comparison

The Delhi High Court has set aside a Trademark Registry order that refused to register the device mark "AYU LIFESCIENCE" filed by Ayu Lifescience Industries FZE, finding that the Registry committed a "glaring error" by relying on cited marks without verifying their validity and by failing to compare marks as a whole.

Justice Jyoti Singh, who heard the appeal under Section 91 of the Trade Marks Act, 1999, remanded the matter for fresh consideration, directing the Registry to pass a reasoned order within three months after granting the appellant a hearing.

The Case of the 'Living Tree' Mark

Ayu Lifescience applied on June 12, 2025 to register a composite device mark featuring the word "AYU LIFESCIENCE" alongside a distinctive tree device and colour combination, for goods in Class 05 covering pharmaceuticals, medical preparations, and herbicides. The Trademark Examiner issued an examination report citing three allegedly similar prior marks: a device mark simply marked as "AYU", the mark "AYU18" (device), and the word mark "AYU SHAKTI". The appellant filed a reply and attended a hearing, but the Registry passed an order on October 10, 2025 refusing registration under Section 11(1) of the Act on grounds of deceptive similarity and identical or similar goods.

A Flawed Comparison: No Inquiry into Cited Marks' Status

Before the High Court, counsel for Ayu Lifescience argued that the Registry had overlooked critical facts about the cited marks. The "AYU" device mark had been objected to and its application had remained unprosecuted since 2020. "AYU SHAKTI" was under opposition proceedings and yet to be finalized. Only "AYU18" was registered, but the appellant contended that its overall composition was "completely distinguishable" from the applied mark, which contained the additional word "LIFESCIENCE" and a pictorial tree element.

The respondent, represented by standing counsel Mr. Gaurav Barathi, defended the refusal, arguing that the word "AYU" was the dominant element common to all marks and that the goods being pharmaceutical preparations warranted a strict approach to avoid confusion.

The High Court found merit in the appellant's submissions. Justice Singh observed that the Registry had "completely overlooked" the fact that two of the three cited marks were not validly subsisting on the register. "This is a glaring error in the impugned order and on this ground, the matter deserves to be remanded," the Court held.

Anti-Dissection Rule Overlooked

The Court also faulted the Registry for failing to conduct a proper comparison of the applied mark with the only registered cited mark, "AYU18". The appellant had argued that when viewed as a whole, the marks were visually, structurally, and phonetically distinct—the applied mark contained a tree picture, the word "LIFESCIENCE", and a unique colour combination. The appellant further submitted that the Registry had dissected the marks and been influenced solely by the commonality of the word "AYU", which violated the well-established anti-dissection rule.

Justice Singh agreed: "Respondent has not entered into the exercise of comparing the applied mark with the cited mark on the parameters under Section 11(1) of 1999 Act ... and seems to have been influenced by the fact that both device marks have commonality of the word AYU, by dissecting the marks, which is against the anti-dissection rule ."

The Court noted that the appellant's alternative suggestion—registration with a disclaimer on using the word "AYU" as a standalone mark—was a possibility the Registry could have considered but did not.

'A Fresh Look at the Application'

Without expressing any final views on the merits of similarity, the Court concluded that the trademark application needed to be considered afresh. It partially allowed the appeal, set aside the impugned refusal order, and directed the Trademark Registry to reexamine application no. 7057843 after giving the appellant an opportunity of hearing. The Registry must decide within three months, taking into account that two of the cited marks are under objection and opposition respectively.

The decision reinforces that trademark examiners must verify the legal status of cited marks before relying on them to refuse registration, and that comparisons must follow the anti-dissection rule—looking at marks in their entirety rather than isolating common elements.