Supreme Court Orders Flipkart to Clear MarQ Inventory Within Eight Weeks Amid Trademark Dispute

Supreme Court Upholds Injunction Against Flipkart's MarQ Brand

MUMBAI: The Supreme Court has granted e-commerce major Flipkart eight weeks to clear its inventory of MarQ-branded electronic items, while refusing to interfere with earlier orders passed by lower courts and the Delhi High Court in the trademark dispute.

A two-judge bench comprising Chief Justice of India Surya Kant and Justice Joymalya Bagchi observed that the two marks appeared "substantially similar", including in pronunciation and overall commercial impression. The bench declined to interfere with the Delhi High Court's 10 April order, which had upheld an injunction against Flipkart, holding that "MarQ" was deceptively similar to "MARC".

The bench noted that the two marks are similar class goods and that the law is clear on this matter. "They are similar class goods. This law is clear...We won't allow similar or dissimilar or deceptively similar marks in this sort. It will create confusion," the bench observed.

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Senior counsel Rajshekhar Rao, appearing for Flipkart, told the court that the company was willing to fully rebrand and sought time to exhaust existing inventory and pipeline stock. However, Justice Bagchi criticized Flipkart for continuing to sell the products despite earlier court directions.

The dispute dates back to 2018, when Marc Enterprises approached a Delhi trial court seeking an injunction against Flipkart's use of the "MarQ" trademark. The trial court restrained Flipkart, prompting the company to move the Delhi High Court. In January 2018, Justice Najmi Waziri allowed Flipkart to sell its remaining "MarQ"-branded inventory until 30 January and advertise the products during its Republic Day sale, subject to maintaining accounts of those sales.

Flipkart launched MarQ in 2017 as a private label spanning televisions, air conditioners, and washing machines, positioning it as a global electronics brand. Marc Enterprises, established in 1984, sells electrical products in similar categories.

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Note: The above table shows the revenue comparison between Flipkart and Marc Enterprises. Flipkart's revenue for Q4 2023 is ₹13,440 crores, while Marc Enterprises' revenue for FY 2022-23 is ₹2,100 crores.

Flipkart is currently preparing for a potential public listing. According to a Bloomberg report, the company has held informal discussions with investors and could launch an IPO as early as 2027.