Blinkit gets reprieve as Supreme Court refuses to intervene in Blinkhit matter

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In a significant development for Zomato-owned Blinkit, the Supreme Court (SC) reportedly declined to stay the Karnataka High Court’s order in a trademark infringement case involving the quick-commerce giant. The issue revolves around the HC’s April order, which set aside a temporary injunction in favor of Blinkhit by a trial court and directed the matter’s disposal within a year. Blinkhit, also claiming the trademark, later challenged the HC’s decision in the Supreme Court.

SC Bench Questions Blinkhit’s Financials During the Plea Hearing

During the hearing of Blinkhit’s plea, a bench of Justices Sanjiv Khanna and SVN Bhatti raised concerns about the appellant’s financials. Bar and Bench reported that Justice Khanna noted Blinkhit’s zero turnover and lack of attached financial documents to support their case.

SC Dismisses the Appeal, Upholds HC’s Judgment

In its final order, the Supreme Court stated that it was not inclined to interfere with the Karnataka HC’s judgment and subsequently dismissed Blinkhit’s appeal. This decision leaves the HC’s order intact, providing a legal victory to Blinkit.

Background of the “Blinkit” Trademark Infringement Case

The legal dispute arose when Bengaluru-based web development company Blinkhit filed a trademark infringement case against quick-commerce major in the Bengaluru civil court in June 2022. Blinkhit claimed ownership and registration of the trademarks ‘Blinkhit’ and ‘iBlinkhit’ since 2016, but in December 2021, it applied for the trademark of ‘Blinkit.’ Around the same time, Blinkit (formerly Grofers) underwent rebranding and changed its name to Blinkit, leading to its trademark application.

Blinkit’s Struggle to Secure the ‘Blinkit’ Trademark

The legal battle intensified as Zomato showed interest in acquiring Blinkit. Initially, the civil court granted a temporary injunction in favor of Blinkhit, but the Karnataka HC later stayed it. Despite repeated attempts by Blinkit, the HC refused to entertain their contention that they obtained the ‘Blinkhit’ trademark before Blinkit’s rebranding. The HC flagged concerns about Blinkhit’s business activity and revenue generation under the trademark and eventually stayed the injunction in favor of Blinkit in April.

As the legal tangle continues, Blinkit faces significant stakes, having invested substantial funds in building its brand value. The recent SC ruling comes shortly after Zomato reported a consolidated profit after tax (PAT) of INR 2 crore in the first quarter of the financial year 2023-24, with the quick-commerce vertical experiencing muted revenue growth during the same period.

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Blinkit gets reprieve as Supreme Court refuses to intervene in Blinkhit matter

In a significant development for Zomato-owned Blinkit, the Supreme Court (SC) reportedly declined to stay the Karnataka High Court’s order in a trademark infringement case involving the quick-commerce giant. The issue revolves around the HC’s April order, which set aside a temporary injunction in favor of Blinkhit by a trial court and directed the matter’s disposal within a year. Blinkhit, also claiming the trademark, later challenged the HC’s decision in the Supreme Court.

SC Bench Questions Blinkhit’s Financials During the Plea Hearing

During the hearing of Blinkhit’s plea, a bench of Justices Sanjiv Khanna and SVN Bhatti raised concerns about the appellant’s financials. Bar and Bench reported that Justice Khanna noted Blinkhit’s zero turnover and lack of attached financial documents to support their case.

SC Dismisses the Appeal, Upholds HC’s Judgment

In its final order, the Supreme Court stated that it was not inclined to interfere with the Karnataka HC’s judgment and subsequently dismissed Blinkhit’s appeal. This decision leaves the HC’s order intact, providing a legal victory to Blinkit.

Background of the “Blinkit” Trademark Infringement Case

The legal dispute arose when Bengaluru-based web development company Blinkhit filed a trademark infringement case against quick-commerce major in the Bengaluru civil court in June 2022. Blinkhit claimed ownership and registration of the trademarks ‘Blinkhit’ and ‘iBlinkhit’ since 2016, but in December 2021, it applied for the trademark of ‘Blinkit.’ Around the same time, Blinkit (formerly Grofers) underwent rebranding and changed its name to Blinkit, leading to its trademark application.

Blinkit’s Struggle to Secure the ‘Blinkit’ Trademark

The legal battle intensified as Zomato showed interest in acquiring Blinkit. Initially, the civil court granted a temporary injunction in favor of Blinkhit, but the Karnataka HC later stayed it. Despite repeated attempts by Blinkit, the HC refused to entertain their contention that they obtained the ‘Blinkhit’ trademark before Blinkit’s rebranding. The HC flagged concerns about Blinkhit’s business activity and revenue generation under the trademark and eventually stayed the injunction in favor of Blinkit in April.

As the legal tangle continues, Blinkit faces significant stakes, having invested substantial funds in building its brand value. The recent SC ruling comes shortly after Zomato reported a consolidated profit after tax (PAT) of INR 2 crore in the first quarter of the financial year 2023-24, with the quick-commerce vertical experiencing muted revenue growth during the same period.

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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