In a sensational verdict, the Delhi High Court has banned Intex from selling Aqua series smartphones and accessories. The verdict was delivered based on a trademark infringement petition filed by the rival Aqua Mobile.
In his verdict, Justice GS Sistani disclosed that the new order will take effect after two weeks. This is because the company needs to dispose of the current stocks. Meanwhile, Intex has decided to appeal the order before a division bench of the high court.
While delivering the verdict, Sistani observed that defendants, directors, and other persons are severely restrained from using the trademark Aqua. They should not use any other similar trademark with regard to smartphones and related accessories till the final disposal of the litigation.
With nearly 2 million smartphones, the Aqua series heavily endorsed by Farhan Akhtar occupies 90 percent of Intex’s quarterly shipments. If the order is implemented, then it will be a huge crash in the overall sales of the company.
According to industry analysts, the move could severely impact the position of Intex in the market. The market is already facing trouble for the last 4 months and this order will be a severe blow. As per the data released by the market research firm International Data Corporation, Intex is no longer in the top 5 smartphone players if you look at the Q4 2016 figures.
During the course of hearing, Intex argued that the Aqua’s contention was arbitrary and was highly not in a position to distinguish the goods of Aqua Mobiles. Hence, Aqua mobiles were not entitled to any protection from trademarks. However, the court rejected the argument.
That being said, Intex should settle disputes with Aqua Mobiles out of the court for smooth sale of currently available handsets. Moreover, if Aqua series gets discontinued then existing customers will face problems with service as well.