The Bombay High Court has granted ad-interim relief in favour of ITC Limited, restraining the defendants from manufacturing, selling, or dealing in counterfeit “GOLD FLAKE” cigarettes. The order follows ITC’s suit for trademark infringement, copyright violation, and passing off.
Background
- ITC’s ownership and reputation:
ITC holds the registered GOLD FLAKE trademark, first registered in 1942, with uninterrupted use traced back to around 1905. - Discovery of counterfeiting:
Following a police raid at a farmhouse in Raigad (conducted on October 24, 2024), authorities seized machinery, raw materials, and finished counterfeit GOLD FLAKE cigarettes valued at approximately ₹ 4.94 crore. - Health hazard:
Laboratory analysis reportedly found that the illicit cigarettes contained a dangerous mixture of sawdust and chemicals, raising serious public health concerns.
Court’s Analysis & Decision
- The Court conducted a prima facie comparison of genuine vs. infringing packets and concluded that the seized products were indeed counterfeit GOLD FLAKE cigarettes.
- It held that ITC had made out a strong prima facie case, given its longstanding use of the mark, its strong goodwill, and its substantial presence in the cigarette market, supported by large sales revenues.
- The Court agreed that allowing the counterfeit operation to continue would risk eroding ITC’s reputation and pose serious risks to consumers.
- Given the scale and severity of the counterfeiting, the Court was convinced that granting interim relief without delay was necessary.
Relief Granted
- The defendants are temporarily barred from manufacturing, distributing, advertising, or selling counterfeit “GOLD FLAKE” cigarettes or any deceptively similar products.
- They are also restrained from using ITC’s artistic works or trade dress that could mislead consumers into believing the fake products are ITC’s genuine Gold Flake.
- The Court has directed the disclosure of details including identities of persons associated with the illicit manufacturing unit, dealer networks, and inventories of counterfeit goods.
Next Steps
The matter is scheduled to be further heard on 10 December 2025, when the Court will consider whether to continue or expand the interim relief. Meanwhile, the order remains in effect to prevent the distribution of the dangerous counterfeit cigarettes.
Implications
- This decision underscores the court’s willingness to issue prompt interim injunctions in trademark and copyright disputes, especially where there is a public health dimension.
- It highlights the strength of long-established trademarks such as GOLD FLAKE and how the Court protects both brand goodwill and consumer safety.
- For companies facing counterfeiting risks, this serves as a powerful example: timely legal action can help curb illegal manufacturing and distribution even at the preliminary stage.
[ITC Ltd. v. Abbas Mohammad Shaikh, Interim Application (L) No. 29298 of 2025, decided on 13-11-2025]
