In a significant development for Blinkit, the quick-commerce giant owned by Zomato, the Supreme Court (SC) has reportedly declined to grant a stay on the Karnataka High Court’s order in a trademark infringement case. This decision comes as a major relief for the company and its stakeholders. The ruling was issued on Friday, August 4.
The matter pertains to the April ruling of the High Court, which revoked a temporary injunction in favor of Blinkhit as granted by a trial court. This ruling also included instructions to resolve the case within a year. Blinkhit, asserting its own trademark rights, subsequently contested the High Court’s decision in the Supreme Court.
During the hearing of a plea submitted by Blinkhit, a bench of Justices Sanjiv Khanna and SVN Bhatti from the Supreme Court noted that the appellant had reported no turnover and had not provided any financial documentation to substantiate their argument.
“You have zero turnover. I went through the files, you did not even mention your financials,” Justice Khanna said as per Bar and Bench.
Following this, the Supreme Court, in its ruling, remarked that it had no intention to intervene in the High Court’s decision and consequently dismissed the appeal.
Central to the issue is a trademark infringement lawsuit brought forth by Blinkhit, a web development company based in Bengaluru, against the prominent quick-commerce entity. The case was initiated in the Bengaluru civil court in June 2022.
Although Blinkhit asserted ownership and registration of the trademarks ‘Blinkhit’ and ‘iBlinkhit’ since 2016, it appears that the company sought to register the alliteration ‘Blinkit’ as a trademark in December 2021.
In 2021, during the same period, Grofers, which later became Blinkit, underwent a rebranding process, adopting the new name Blinkit. Subsequently, Blinkit applied for a trademark for its new name. Legal complications arose when news surfaced about Zomato’s potential acquisition of Blinkit. Following these developments, the web development company approached the Bengaluru civil court in June 2022, seeking an injunction in response to the situation.
Initially, the civil court sided with Blinkhit’s argument and issued a provisional injunction. Following this, the quick-commerce giant appealed to the Karnataka High Court and successfully secured a suspension of the injunction. Subsequently, the case returned to the lower court, which once more ruled in favor of the web development company.
In response, Blinkit once more approached the High Court, seeking redress. The High Court, however, reiterated its decision to dismiss Blinkhit’s argument regarding the prior acquisition of the ‘Blinkhit’ trademark before the company’s rebranding and operational changes.
In April, the High Court echoed the Supreme Court’s concern, noting that Blinkhit did not conduct any business or generate any income under the claimed trademark. The court also pointed out the contrasting nature of business between the two parties and consequently lifted the injunction in favor of Blinkit.
As the legal complexities continue to unfold, Blinkit finds itself in a high-stakes situation, having invested significant amounts of money to establish its brand’s value.
The Supreme Court’s relief came just one day after Zomato announced a consolidated profit after tax (PAT) of INR 2 Crores in the first quarter of the financial year 2023-24 (FY24). While Zomato’s food delivery business continued to expand, the quick-commerce vertical experienced subdued revenue growth during the same quarter.
Read More: Zomato turns profitable in Q1 FY24, reports INR 2 Cr consolidated PAT
Also Read: Zomato’s profitable quarter ignites bullish outlook; brokerages raise target prices
