Counterfeit Crackdown: Delhi High Court Declares ‘Nutella’ a Well-Known Trademark in Landmark Ruling

 

🔹 Case Title: Ferrero SpA & Ors v. M.B. Enterprises
🔹 Judgment Date: 28 July 2025
🔹 Court: Delhi High Court
🔹 Presiding Judge: Justice Saurabh Banerjee
🔹 Suit No.: CS(COMM) 593/2021

🔍 Background: From Raids to the Courtroom

The global confectionery giant Ferrero SpA, known for its beloved hazelnut cocoa spread Nutella, filed a trademark infringement suit against M.B. Enterprises after receiving a notification from Maharashtra's FDA. A raid at the Thane facility uncovered:

  • Over 9.5 lakh units of counterfeit Nutella

  • Approximately 4 lakh packaging components (jars, lids, labels)

  • Products manufactured under unhygienic conditions, raising serious public health concerns

⚖️ Court’s Observations and Key Legal Findings

1. Trademark Infringement & Passing Off
The Court found M.B. Enterprises guilty of copying Nutella’s label, trade dress, and packaging with the clear intention of deceiving the public and cashing in on Ferrero’s reputation. It stressed that:

“The defendant was operating in the same trade channels, using identical marks and packaging, posing significant risks of consumer confusion.”

2. Public Health Risk
Given that Nutella is a food product—particularly popular among children—the Court noted the heightened obligation to protect consumers from counterfeit consumables. It drew parallels to pharmaceutical trademark cases, stating that:

“Food-related trademarks demand stricter judicial scrutiny due to risks to public safety.”

3. Damages Awarded

  • ₹30 lakh in damages awarded to Ferrero

  • ₹2 lakh in litigation costs payable to the Delhi High Court Bar Association Welfare Fund

  • Estimated loss from the counterfeit stock was pegged at ₹38.29 crore based on MRP

📢 Landmark Declaration: ‘Nutella’ as a Well-Known Trademark

For the first time under Indian law, the Delhi High Court officially declared Nutella a well-known trademark under Section 2(zg) of the Trade Marks Act, 1999. The Court considered:

  • Continuous use since 1964 globally and since 2009 in India

  • Registered trademarks since 1975, covering multiple classes

  • Significant marketing investments:

    • ₹3 crore (FY 2020–21)

    • ₹7 crore (FY 2021–22)

    • ₹16 crore (FY 2022–23)

  • Annual sales figures in India of ₹233 crore (2020–21), ₹145 crore (2021–22), and ₹106 crore (2022–23)

The Court concluded that:

“Nutella is not just a product; it is a household name with a distinctive identity and global recognition deserving of the strongest legal protection.”

🧾 Legal Impact and Future Implications

  • Permanent Injunction: M.B. Enterprises and its associates are now permanently restrained from producing or selling any product bearing the Nutella name or resembling its trade dress.

  • Precedent for Food Product Protection: The judgment reinforces the Court’s commitment to safeguarding edible goods through strict IP enforcement.

  • Strengthened IP Rights for Multinational Brands: The declaration under Section 2(zg) elevates Nutella’s trademark protection, enabling Ferrero to take swift legal action against future infringements.

🧠 Key Takeaways for Legal, Retail, and IP Professionals

  • Brand owners should proactively monitor counterfeit risks in India and act swiftly through legal remedies.

  • Retailers and distributors must verify product authenticity to avoid liability for dealing in fakes.

  • Legal professionals should note the increasing judicial trend of treating well-known food trademarks with the same sensitivity as pharmaceuticals.

📝 Conclusion

The Delhi High Court’s decision in Ferrero v. M.B. Enterprises is not just a win for Nutella, but a landmark for brand protection in India's fast-growing FMCG and food sectors. By declaring Nutella a “well-known trademark,” the Court has set a clear precedent that counterfeiters will face stiff penalties—especially when public health is at stake.

🎯 In an era of rising counterfeits, this judgment is a strong reminder: reputations built over decades cannot be hijacked overnight.


Location: Pune, Maharashtra, India

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