The Nutella Counterfeit Case: Importance of Protecting Food Brands

1. What was the Nutella case and why is it important?

In 2021, Indian authorities uncovered around 1 million counterfeit Nutella jars. These imitations looked exactly like the real ones and posed health risks. On 28 July 2025, the Delhi High Court awarded ₹30 lakh in damages and issued a permanent ban on selling such fakes. Nutella has had a strong presence in India since 2009, with high advertising investments (₹16 crore in 2022–23). The judgment highlighted the importance of protecting food-related brands under intellectual property laws.

2. What is a ‘well-known’ trademark under Indian law?

Under Section 2(1)(zg) of the Trade Marks Act, 1999, a ‘well-known’ trademark is one that is recognised by the public at large, even if it is used for unrelated goods or services. This recognition grants the brand wide legal protection, based on its reputation and goodwill. The law is aligned with international treaties like the Paris Convention and the TRIPS Agreement.

3. What legal advantages does this status provide?

• Cross-sector Protection: Even if a brand like Amul is copied by an unrelated business (e.g., a mobile phone brand), it can legally stop them.
• Nationwide Defence: Legal action can be taken even if the brand is not registered in every class or state.
• Presumption of Distinctiveness: The court assumes the brand is unique and enjoys goodwill, reducing the burden of proof.
• Quicker Injunctions: Courts grant faster temporary relief to prevent damage.
• No Time Limit: Even older infringements can be challenged since the brand’s legal status doesn’t expire with time.

4. What commercial benefits come with this legal status?

• Higher Royalty Demands: For example, Domino’s can demand more from franchisees due to its well-known tag.
• Premium Pricing Power: Products like Dettol or Taj Hotels can charge more due to their brand image.
• Better Business Terms: Stronger negotiation power during mergers, licensing, or partnerships.

5. Can companies misuse this legal tag?

Yes. Some may use it to shut down small players or block unrelated businesses. To avoid misuse, the Trademark Registry and courts conduct thorough checks. Only truly deserving brands—based on public recognition, market presence, and evidence—receive this legal recognition.