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.
