MP High Court Bans Reuse of STOK Beer Bottles Over Trademark Row

Case 5: Mount Everest Breweries Ltd. v. MP Beer Products Ltd. & Ors.

Citation: 2024 SCC OnLine MP 7367
Court: Madhya Pradesh High Court
Date Decided: 12 November 2024
Bench: Justice Sanjeev Sachdeva and Justice Pranay Verma

Background

Beer bottles are at the center of a dispute in which Mount Everest Breweries Ltd. (MEBL), the manufacturer of the “STOK” beer brand, discovered that MP Beer Products Ltd. and other respondents were reusing its distinctive glass beer bottles embossed with the “STOK” trademark and a panda logo to market their beer products. MEBL contended that this practice infringed upon its trademark rights and misled consumers.

In response, the Excise Commissioner of Madhya Pradesh issued an order on 7 November 2020, prohibiting all beer and liquor bottling units from reusing embossed bottles. The respondents challenged this order, arguing that it was unreasoned and violated their industrial practices. A single judge quashed the Commissioner’s order on 13 March 2024, directing a reconsideration. MEBL appealed this decision.

Plaintiff’s MARK

Legal Issues

1. Whether reusing embossed bottles with another manufacturer’s trademark constitutes infringement under the Trade Marks Act, 1999.
2. Whether the Excise Commissioner had the authority under the MP Foreign Liquor Rules to prohibit such reuse.
3. Whether such reuse violates the MP Foreign Liquor Rules and misleads consumers.

Parties’ Contentions

Appellant (Mount Everest Breweries Ltd.):

• Argued that the reuse of its embossed bottles by the respondents infringed its trademark rights and misled consumers.
• Asserted that such practices violated the MP Foreign Liquor Rules, which require labels and brands to uniquely identify the manufacturer.

Respondents (MP Beer Products Ltd. & Ors.):

• Contended that reusing empty beer bottles is an industry norm and environmentally sustainable.
• Claimed that they procured bottles legally from scrap dealers and affixed their own labels, preventing consumer confusion.
• Argued that the Excise Commissioner’s order lacked legal basis and violated their right to trade under Article 19(1)(g) of the Constitution.

Decision

The Madhya Pradesh High Court upheld the Excise Commissioner’s order prohibiting the reuse of bottles with embossed trademarks, recognizing it as a measure to prevent trademark infringement and consumer deception. However, the court set aside the restriction on reusing bottles after removing or scratching off the embossed logos, leaving this issue open for determination in appropriate proceedings.

Ratio Decidendi

• Reusing bottles with another manufacturer’s embossed trademark constitutes trademark infringement and violates the MP Foreign Liquor Rules.
• The Excise Commissioner is empowered to enforce rules preventing label misuse and brand confusion.
• While environmental concerns are valid, they do not justify practices that infringe upon intellectual property rights.

LEGAL ANALYSIS

• Trade Marks Act, 1999: Sections 29(1), 29(2)(b)
• MP Foreign Liquor Rules, 1996
• MP Beer and Wine Rules, 2000
• Constitution of India: Article 19(1)(g)

Bibliography

• Mount Everest Breweries Ltd. v. MP Beer Products Ltd. & Ors. [2024] SCC OnLine MP 7367
• ‘Trademark Infringement | MP High Court upholds Excise Commissioner’s order prohibiting reuse of embossed Mount Everest beer bottles’ (SCC Online, 19 November 2024) https://www.scconline.com/blog/post/2024/11/19/trademark-infringement-mp-high-court-upholds-excise-commissioners-order-prohibiting-reuse-of-embossed-mount-everest-beer-bottles-scc-times/
• ‘Reusing Another Brand’s Embossed Beer Bottles To Sell One’s Own Beer Product Is Trademark Infringement: Madhya Pradesh High Court’ (LiveLaw, 14 November 2024) https://www.livelaw.in/high-court/madhya-pradesh-high-court/madhya-pradesh-high-court-embossed-bottles-reuse-liquor-sale-trademark-infringement-275177