Maggi v/s Maggisun: HC closes trademark suit after Nestle's settlement
What's the story
The Delhi High Court has closed a trademark infringement case filed by Nestle S.A., the parent company of "Maggi," against Shankeshwar Utensils & Appliances Private Limited. The latter was manufacturing utensils under the brand name "Maggisun." Justice Tejas Karia approved the settlement, which saw Shankeshwar Utensils agree not to manufacture or sell pressure cookers or any other goods under the trademark "Maggisun" or any similar mark.
Legal agreement
Nestle filed case in 2018
The case was filed by Societe Des Produits Nestle SA (Nestle), the official corporate name of FMCG giant Nestle, in 2018. The company, which acquired the Maggi brand in 1947, claimed that Shankeshwar Utensils's use of the mark "Maggisun" violated its trademark rights. As part of the settlement, Shankeshwar Utensils recognized Nestle as the owner of the MAGGI trademark and accepted all its trademark registrations as valid.
Compliance measures
Defendant agreed to destroy all products bearing 'Maggisun'
The defendant also agreed not to advertise Maggisun, Maggi, or any similar trademark on any media. This includes print, electronic, social media, or e-commerce platforms. Shankeshwar Utensils also agreed to destroy all products bearing the mark Maggisun or any similar mark and cancel its trademark registration for "Maggisun." Nestle's counsel confirmed that remaining claims in the suit would not be pursued if the court accepted this settlement.
Market impact
One of the fastest-growing markets for Nestle
The court said, "The suit is decreed in terms of the settlement arrived at between the parties as recorded above." It also added that "the parties are directed to be bound by the terms of the settlement." India has become Nestle's largest market for Maggi noodles with six billion servings sold in FY2023-24. The company also calls India one of its fastest-growing markets globally with a high double-digit growth rate.
Brand resilience
Maggi remains popular despite controversies
Nestle India has launched over 140 products in the last eight years. The company plans to invest ₹7,500 crore between 2020 and 2025 to strengthen its operations in India. Despite facing health-related controversies, such as a five-month ban by the Food Safety and Standards Authority of India (FSSAI) in June 2015 due to lead content exceeding permissible limits, Maggi remains a popular choice among consumers.