PL Sector Update - Luggage - VIP gets temporary injunction on using CARLTON trademark

PL Sector Update – Luggage - *Jinesh Joshi – Research Analyst, Prabhudas Lilladher Pvt Ltd*

Luggage Update: VIP gets temporary injunction on using CARLTON trademark

Background to the event: In 2019, VIP learnt Carlton Shoes which was engaged into the business of manufacturing shoes had started using trademark “Carlton” in relation to handbags and was in the process of venturing into the luggage business.

Hence, VIP filed a suit against Carlton Shoes to prevent it from using trademark “Carlton”. In response, Carlton Shoes filed a suit against VIP seeking injunction against using trademark “Carlton”.

Quite surprisingly, the Delhi High Court has restrained VIP from using trademark Carlton and dismissed its plea against Carlton Shoes.

Our view: Carlton is a >Rs100crs business (~5% of FY23 top-line) for VIP. Further, most importantly this is an interim order and VIP expects to achieve a stay on this order latest by 24th July, 2023. However, if the stay gets delayed there could be top-line shortfall risk of ~5% odd.