JUDGEMENT

SANJEEV NARULA, J.

1. The Plaintiff, Adidas AG, manufacturer and distributor of sports accessories and apparel under the trademark “ADIDAS,”1 has filed the present suit seeking to secure their rights against the use of an identical mark by the Defendants for various classes of goods, including textiles.

Plaintiff’s case

2. The facts and contentions urged by Mr. Ranjan Narula, counsel for

1 Includes formative marks detailed in paragraph no. 2.5 of this order

the Plaintiff are as follows:

2.1. Adoption of the mark “Adidas”: In 1948, the founder of the Plaintiff Company, Mr. Adolf Dassler, also known as ‘Adi’, coined the mark “Adidas” by combining his name ‘Adi’ with the first three letters of his surname ‘Das’. The mark was put to commercial use in 1949 when Mr.

Dassler incorporated the company ‘Adolf Dassler adidas Sportschuhfabrik’ for manufacturing and marketing a wide range of sporting equipment, accessories, and apparels. Over the years, the company underwent corporate restructuring and is presently known as Adidas AG.

2.2. Global reputation of the mark: The Plaintiff launched several brands, including “Adidas Originals,” for its range of products. The cumulative global sales of the Plaintiff till the year 2010, the period preceding the filing of the suit, amounted to €11,990 million. The trademark “Adidas” has been registered in the Plaintiff’s favour in various countries, with the earliest one dating back to 1954. Furthermore, the Plaintiff expended substantial amounts in promoting its products across the world. Plaintiff’s products under the mark “Adidas” have been endorsed by various well-known celebrities in the fields of sports, music, and film at several events. The Plaintiff has also periodically sponsored popular football, rugby, and cricket leagues. Owing to Plaintiff’s extensive promotion and high-quality standards of the “ADIDAS” products, they are widely recognized all over the world and exclusively associated with the Plaintiff.

2.3. Presence in India: The Plaintiff’s predecessor first registered its mark “” in India in the year 1971. In 1989, the Plaintiff granted a license to commercially trade in India to M/s Bata India Pvt. Ltd., thus marking their entry in the Indian market. Later, in 1996, Plaintiff established a joint venture company named ‘Addidas India Marketing Private Limited’ (formerly, Adidas India Trading Private Limited) in India. This joint venture was terminated in 2006, when ‘Adidas India Marketing Private Limited’ became Plaintiff’s subsidiary. Thus, the Plaintiff has been openly and continuously carrying on their business in India since 1989. Even before 1989, the Plaintiff’s goods were being purchased by Indian consumers travelling abroad. Further, their products were also available in duty-free shops at Indian airports. That apart, there were extensive broadcasting in India of sporting events which were either sponsored by the Plaintiff or where competing players used the Plaintiff’s Adidas products. Such prevalence and widespread publicity even before their launch in India, indicate that Plaintiff’s reputation garnered in other countries spilled into India.

2.4. The sales figures of the Plaintiff’s products in India amounted to INR 3,35,81,72,000/- in the year 2009. To further promote their “ADIDAS”

mark/ products, the Plaintiff sponsored several teams participating in the Indian Premier League along with other tennis, athletics, and football tournaments, and issued advertisements in print media extensively distributed throughout the country. The mark has also been endorsed by celebrated cricketers. The promotional expenses for “ADIDAS” products between 2000-2010 in India have been set out in paragraph No. 15 of the plaint.

2.5. Trademark registrations in India: The Plaintiff has, over the years, secured multiple registrations for “ADIDAS” trademark including it variants,2 particulars whereof are as follows: