In HORLICKS LTD. vs HEINZ INDIA PRIVATE LIMITED, a suit filed by Horlicks Ltd for damages and permanent injunction restraining infringement, disparagement and unfair trade practices against HEINZ India Private Limited (Complan) as the advertisement by Complan had compared one cup of COMPLAN with two cups of HORLICKS and claimed that one cup of COMPLAN has the same amount of protein as two cups of HORLICKS.
The court held that the COMPLAN advertisement is not misleading and there is no denigration or disparagement of Horlicks. The court also held that the primary objective of Sections 29(8) and 30(1) of the Trade Marks Act, 1999, is to allow comparative advertising as long as the use of a competitor’s mark is honest and that the failure to point out a competitor’s advantages is not necessarily dishonest.
The court also opined that advertisement is a facet of commercial speech which is protected by Article 19(1)(a) of the Constitution. The same can be restricted only in accordance with law enacted under Article 19(2) of the Constitution. In a democratic country, free flow of commercial information is indispensable and the public has a right to receive the commercial speech. In fact, the protection given to an advertisement under Article 19(1)(a) of the Constitution is a necessary concomitant of the right of the public to receive the information in the advertisement.
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