Whalesbook
The Supreme Court has criticized liquor sold in tetrapacks, noting they resemble juice boxes, lack health warnings, and can be discreetly carried by children. This observation was made during a trademark dispute hearing between Allied Blenders & Distillers ('Officer's Choice') and John Distilleries ('Original Choice'). The long-standing case has been referred to mediation by retired Justice L Nageswara Rao, while the packaging issue highlights a potential regulatory gap.
The Supreme Court of India has sharply criticized the packaging of liquor in tetrapacks, observing that these cartons resemble fruit juice boxes, carry no health warnings, and could be used by children to discreetly carry alcohol, even to schools.
A bench comprising Justices Surya Kant and Joymalya Bagchi made these remarks while hearing cross-petitions concerning a trademark dispute between Allied Blenders & Distillers (Officer's Choice) and John Distilleries (Original Choice), two of India's leading whisky brands.
The Court expressed concern that such packaging is permitted primarily due to state revenue interests, with insufficient consideration for public health risks. "Governments are interested in revenue. But how much health cost is wasted because of this?" the bench questioned.
This legal battle, spanning over two decades, revolves around whether 'Original Choice' is deceptively similar to 'Officer's Choice', the role of the shared suffix 'CHOICE', and whether colour schemes, badges, and label layouts create a misleading overall impression. After conflicting rulings from the Intellectual Property Appellate Board (IPAB) and the Madras High Court, the matter reached the apex court.
Recognizing the prolonged litigation, the Supreme Court urged the parties to explore branding modifications and referred them to retired Justice L Nageswara Rao for time-bound mediation. The court indicated that the legality of liquor in cartons might warrant public-interest scrutiny independently of the trademark fight, pointing to a potential regulatory vacuum.
Impact
This news has a significant impact on the Indian stock market, particularly the alcoholic beverage sector. The Supreme Court's strong stance on packaging could lead to regulatory changes, affecting how alcohol companies package and market their products. The ongoing trademark dispute's referral to mediation offers a path to resolution, potentially impacting brand strategies for both companies.
Rating: 7/10
Difficult Terms:
Trademark Rectification: A legal process to correct or remove an existing trademark registration that is deemed incorrect, invalid, or infringing.
Acquiescence: In trademark law, when a trademark owner, by their inaction or silence over a prolonged period, is deemed to have accepted or agreed to another party's use of a similar mark.
Honest Concurrent Use: A legal principle where two or more parties are allowed to use similar trademarks for similar goods or services in the same geographic area because they have been using them honestly and concurrently without causing confusion.
Trade Dress: The total visual impression of a product and its packaging, including its design, shape, color combinations, and other visual elements, which serve to identify its source.
