IP Enforcement of expression “Khadi”

Khadi and Charkha have been the most significant identity and expression of our country highlighting the tradition, culture, and ethos of the pre and post-independent India. Khadi also symbolizes the strong association with the personality traits, characteristics, and nature of Mahatma Gandhi who promoted the growth and manufacturing of khadi textiles among rural India in order to show the potential of Independent India. With the growing khadi industry amongst the rural and other small-scale sectors, Khadi Village Industries Commission (KVIC), a statutory body established under The Khadi and Village Industries Commission Act of 1956 was incorporated in order to safeguard, encourage and facilitate the interest of all the stakeholders of the Khadi industry in India and other parts of the world.

Background and Legal Aspect

In response to the growing economy and competition, players in the textile industry tend to violate the legal rights which have been recognized by the law. Collectively, KVIC has been constantly involved in enforcing its several legal rights which have been granted under the law for the purpose of safeguarding the interest of the rural khadi producers and various artisans involved in the khadi-based handicraft. Intellectual Property Rights plays a significant role in protecting the same with the help of a trademark and GI regime prevalent in India. Interestingly, KVIC successfully owns several relevant trademarks and tradenames under appropriate classes of 23 and 24 under Trademark laws which deals with the subject-matter relating to synthetic yarns and textiles. Simultaneously, there is a pending application for Geographical Indication (application no. 492) on Khadi under Class 24 of goods categorized as ‘textiles and textile goods (handicraft)’ which has been filed by the Intellectual Property Association on behalf of the Khadi manufacturers and producers.

One such recent instance of enforcement of legal rights associated with the expression “Khadi” has been under observation since 2017 before the Hon’ble Bombay High Court in the case of KVIC vs. Fab India, wherein the legal notice, for the use of the word “Khadi” upon the removable price tags provided on the garments without the prior consent of KVIC, was been served on Fab India which is known to be India’s largest private platform for products that are made from traditional techniques, skills, and hand-based processes. The KVIC asked Fab India “to cease and desist immediately and forthwith from displaying charkha or using selling products bearing the charkha or khadi mark or any similar mark on goods and use/ sell products bearing the word/ mark khadi or any similar mark whatsoever or howsoever related to khadi.” The suit is said to have been filed in pursuant to continuing mala fide practice despite the serving of legal notice on the operations of Fab India. The claim for legal ownership of the term Khadi by the KVIC has been based on the contention made under the provisions of The Khadi Mark Regulations, 2013 which was notified under the Khadi and Village Industries Commission Act, 1956 for the purpose of authentication of genuine khadi and maintaining the standards and quality associated with it. The provisions under the abovementioned regulation state that “no textile shall be sold or otherwise traded by any person or certified khadi institution as khadi or khadi products in any form or manner without it bearing Khadi Mark tag or label issued by Committee.”

Conclusion

On parallel reading of the statutory provisions under the Khadi and Village Industries Commission Act, 1956 as well as Trademarks Act, 1999, it establishes a substantial claim over the word “Khadi” and other related terms into the KVIC and thus can be enforced in case of passing off as well as Infringement cases.

As per the Press Information Bureau’s (PIB) report dated 21 August 2020[1], KVIC has said that in the last few years KVIC has acted tough against any misuse of its brand name “Khadi India” and infringement into its trademark. So far KVIC has issued legal notices to over 1000 private firms including Fab India for misusing its brand name and selling products under the name of Khadi. KVIC has also forced eCommerce portals to remove over 160 web links selling products under the brand name of Khadi. However, after legal notices were served, a majority of firms have apologized to KVIC and withdrawn their products, advertisements fraudulently using Khadi’s name. Fab India Further, KVIC has sought damages to the tune of Rs 500 crore from Fab India which is pending before the Mumbai High Court.

[1] KVIC Serves Legal Notices to “Khadi Essentials” and “Khadi Global” for Fraudulently Using Brand Name Khadi – 21.08.2020 – PIB : MANU/PIBU/2691/2020.