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Delhi HC: Rule 124 Not Mandatory for Well-Known Mark Protection

8 min read
Delhi HC states that Rule 124 Not Mandatory for Well-Known Mark Protection

AI Article Assistant

Columbia Pictures opposed a Class 5 pharmaceutical application for GHOST BUSTER on the strength of its GHOSTBUSTERS registrations in entirely different classes. The Registrar threw the opposition out for want of a Class 5 footprint. The Delhi High Court disagreed with the entire premise of that reasoning.

Background

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Columbia Pictures Industries, Inc., the American studio behind the Ghostbusters franchise since 1984, has held GHOSTBUSTERS registrations in India in Classes 9 and 41 since 1985, and added Classes 25 and 28 in 2019. None of these cover Class 5.

On 1 December 2020, Respondent No. 2 applied to register GHOST BUSTER in Class 5, for pharmaceutical, veterinary and sanitary preparations, on a proposed-to-use basis. Columbia filed a Notice of Opposition on 18 April 2022, pleading deceptive similarity, the well-known status of GHOSTBUSTERS, and bad-faith adoption. The applicant’s explanation for the mark was that it derived from “Ghost Peaks,” a term used in chromatography analysis.

The Registrar rejected the opposition on 16 April 2025. Its reasoning ran on a single track: Columbia held no registration or evidence of use in Class 5, consumers of Hollywood films and consumers of pharmaceutical products are entirely different audiences, and the applicant’s chromatography explanation was accepted as an honest account of adoption. Columbia appealed to the Delhi High Court under Section 91 of the Trade Marks Act, 1999. The appeal was heard by Justice Jyoti Singh and decided on 6 July 2026, in Columbia Pictures Industries, Inc. v. Registrar of Trade Marks & Anr. [C.A.(COMM.IPD-TM) 44/2025; 2026:DHC:5378].

The Core Dispute

Columbia’s case did not rest on ordinary likelihood of confusion between similar goods. It rested on Section 11(2) of the Trade Marks Act, 1999, which bars registration of a mark identical or similar to an earlier well-known mark even where the goods are entirely dissimilar, if use of the later mark without due cause would take unfair advantage of, or be detrimental to, the distinctive character or repute of the earlier mark. Columbia argued that GHOSTBUSTERS is a coined, arbitrary mark with substantial reputation in India built through five decades of film releases, merchandise and enforcement, and that GHOST BUSTER was adopted with full knowledge of that reputation pointing to an earlier US application for the identical mark by the applicant’s sister concern, abandoned after Columbia opposed it.

The Registrar’s defence, adopted before the High Court, had three limbs: Columbia could not claim a monopoly over goods it neither used nor registered in Class 5; a mark can only be treated as well known once formally declared so by a court or through a Rule 124 application under the Trade Marks Rules, 2017; and opposition proceedings, being disputes in personam, cannot be used to generate a finding that operates as if it were in rem. For the monopoly point, reliance was placed on the Supreme Court’s ruling in Nandhini Deluxe v. Karnataka Co-operative Milk Producers Federation Ltd., which held that a trademark proprietor cannot claim exclusivity over an entire class where it does not use the mark for particular goods within that class.

The Court’s Reasoning

Section 11(2) does not require a prior well-known declaration

The Court’s central holding is textual. Explanation (b) to Section 11 defines an “earlier trade mark” to include a mark that is “entitled to protection” as a well-known trade mark. Justice Singh read “entitled” to mean qualifying for protection on the merits, not formally declared to be protected by a separate process. Rule 124 offers a route by which a proprietor can seek a standing declaration of well-known status from the Registry, but nothing in the statute makes that route the only route, or a precondition to relying on Section 11(2) in opposition proceedings. The Registrar remains fully equipped, the Court held, to determine during an opposition whether an earlier mark qualifies as well known, by weighing the statutory factors under Sections 11(6) and 11(7), duration and extent of use, degree of recognition among the relevant public, promotional record, geographical reach, registration history across jurisdictions, and any record of successful enforcement. Rule 43 of the Trade Marks Rules, 2017, which permits an opponent to plead well-known status as a ground of opposition, was read in harmony with this conclusion rather than as a competing provision.

This is, at bottom, a rejection of the idea that a procedural mechanism created to make well-known status more administrable can be read back into the statute as a substantive gatekeeping requirement. The Court’s own summary of the Registrar’s error was blunt: having proceeded on the assumption that dissimilar goods automatically defeated the opposition, the Registrar had “travelled on the wrong path” and so “reached the wrong destination.”

The reputation evidence went unaddressed

Columbia had placed before the Registrar a substantial evidentiary record, i.e., continuous Indian use since 1985, merchandise sales, registrations in over fifty countries, and a history of enforcement action abroad, including the successful US opposition against the applicant’s sister concern. The Registrar’s order did not engage with any of it. It disposed of the opposition purely on the footing of class and goods dissimilarity, without asking the logically prior question of whether GHOSTBUSTERS met the threshold for well-known status at all, a status which, if established, would have made the goods-dissimilarity finding largely beside the point under Section 11(2). The Court treated this omission as a material error going to the root of the order, not a matter of emphasis or brevity.

Nandhini Deluxe distinguished

The Registrar’s reliance on Nandhini Deluxe was distinguished rather than followed. The Supreme Court’s ruling there addressed a proprietor’s attempt to block registration of an ordinary, non-distinctive word across goods it did not deal in a fact pattern about the outer limits of monopoly over descriptive or common terms. GHOSTBUSTERS, by contrast, is a coined and highly distinctive mark with no independent dictionary meaning tying it to any particular class of goods. The Court accepted Columbia’s submission that the two situations are not doctrinally interchangeable: the Nandhini principle constrains claims built on ordinary words, while Section 11(2) is specifically designed to extend protection beyond a proprietor’s registered classes precisely where a mark is well known and distinctive, the coined character of the mark is what triggers the cross-class protection Nandhini’s facts never engaged.

Bad faith was never adjudicated

The second limb of Columbia’s opposition was that GHOST BUSTER was adopted dishonestly which was fared no better before the Registrar, who accepted the applicant’s chromatography explanation without addressing Columbia’s central point: that the applicant’s own sister concern had already tried and failed to register the identical mark in the United States after Columbia’s opposition forced an abandonment. Prior knowledge of that kind, the Court noted, is difficult to reconcile with a claim of independent and honest adoption, and the chromatography explanation was in any event a poor fit, since goods connected to chromatography analysis fall in Classes 9 and 11, not Class 5. Drawing on BPI Sports LLC v. Saurabh Gulati and Kia Wang v. Registrar of Trademarks, the Court reiterated that bad faith in trademark adoption is not confined to direct copying and that it extends to unfair practices and any intent to “lay hands” on the goodwill of another’s mark. The Registrar’s silence on this ground was treated as a second, independent defect in the order.

Final Order

The Delhi High Court allowed the appeal, set aside the Registrar’s order of 16 April 2025, and remanded the opposition for fresh consideration, directing the Registrar to specifically adjudicate both the well-known-mark claim and the bad-faith allegation within three months. The Court was careful to cabin its own ruling: it did not declare GHOSTBUSTERS a well-known trademark, and expressly stated it had formed no opinion on the merits of either ground.

Also Read: Restoring Lapsed Trademarks: Rajinder Singh v. Registrar

Significance

The immediate effect of the ruling is procedural, but its consequences reach further. By holding that a Rule 124 declaration is an optional, non-exclusive route to well-known status rather than a precondition to invoking Section 11(2), the Court has removed what several Registrar orders had treated as an implicit filter, one that effectively required foreign or domestic proprietors to first obtain a standalone declaration before a Section 11(2) plea could even be considered on its merits in opposition. That filter has no textual basis in Section 11(2) itself, and its removal restores the provision to something closer to its plain terms: an opponent with genuine reputation evidence can put that evidence before the Registrar directly, in the opposition itself, without an intervening application.

The ruling also disciplines how oppositions are to be decided. A Registrar cannot resolve a multi-ground opposition by picking the ground that disposes of the matter fastest here, goods dissimilarity, while leaving pleaded grounds on well-known status and bad faith unaddressed. That is a due-process point as much as a trademark-law one, and it is likely to be cited well beyond well-known-mark disputes wherever a Registrar’s order is challenged for engaging with only part of the case actually pleaded.

For brand owners, particularly foreign proprietors whose Indian registrations rarely span every class relevant to potential future dilution, the decision lowers the practical cost of asserting cross-class protection: reputation evidence assembled for the opposition itself can now do the work that might otherwise have required a separate, often lengthy, Rule 124 proceeding. At the same time, the Court’s distinction between coined marks like GHOSTBUSTERS and ordinary words like “Nandhini” leaves room for Registrars to resist overreach. Section 11(2) protection remains tied to distinctiveness and proven reputation, not to fame alone, and a proprietor of a common or descriptive mark will still find Nandhini Deluxe a live obstacle. Whether GHOSTBUSTERS itself clears that bar, and whether the applicant’s adoption survives scrutiny once the US history is squarely addressed, will now depend on how the Registrar applies Sections 11(6) and 11(7) on remand.

Written by

Adv. Koushik Chittella

An Advocate enrolled on the rolls of the Bar Council of the State of Andhra Pradesh. What started as curiosity about how the law protects ideas, brands, inventions, and creative works gradually developed into a genuine passion for studying and explaining IP law, inspiring me to pursue a Masters degree (LL.M.) in Intellectual Property Rights (IPR).

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