The Delhi High Court has held that the Indian whisky manufacturer cannot use the word ‘Scot’ or ‘Scotch’ in compliance with the WTO agreement.
NEW DELHI: In a development that could jolt the burgeoning liquor industry, the Delhi High Court has held that the Indian whisky manufacturer cannot use the word ‘Scot’ or ‘Scotch’ in compliance with the WTO agreement.
In the first ruling in India relating to the protection of Geographical Indications (GIs) under the WTO-TRIPS Agreement, Justice Madan B Lokur agreed that the words ‘Scot’ or ‘Scotch’ identify whisky produced in Scotland and no domestic manufacturer can use them to market its liquor.
The judgment was delivered on a lawsuit filed by the Scotch Whisky Association of United Kingdom seeking to restrain permanently an Indian whisky manufacturer from using the name ‘Red Scot’ or any other name containing the word ‘Scot’ to sell its product.
While decreeing the suit ex-parte, the court directed Golden Bottling Ltd, operating from Delhi and Alwar in Rajasthan, to pay damages of Rs five lakh to the UK-based Scotch Association and its members for passing off its whisky as Scotch whisky.
The court accepted the arguments of advocate Pravin Anand, an IPR expert, that under the WTO-TRIPS agreement, protection was provided for GIs, which identifies the good originating in the territory of a member or the goods which are essentially attributable to its geographical origin.
“I am satisfied that the domestic manufacturer is liable to be restrained from passing off its 'Red Scot' whisky as a produce of Scotland. This can only be done by injuncting it from using the word 'Scot' or any other word similar thereto in the whisky manufactured by it,” the judge said.
The court said since the domestic manufacturers did not prefer to contest the lawsuit it appears that “it is not averse to dropping the word 'Scot' from its whisky.”
The suit was filed under the Geographical Indications of Goods (Registration and Protection) Act, 1999, which was enacted as a result of the WTO-TRIPS Agreement.
Advocate Anand had alleged that Golden Bottling Ltd was using the word Scot to pass off its whisky by giving an impression that it originates in Scotland or that it was Scotch whisky.
The association had claimed damages contending that the reputation of Scotch whisky has been irreparably damaged by the use of word "Scot" in whisky manufactured by the domestic company.
Accepting arguments that the sale and manufacture of the whisky were in violation of the new law, Justice Lokur said, “in view of the well settled law laid down by this court and reiterating the necessity of preventing a violation of the IPR of parties, I think it would be appropriate if the damages as prayed by the Association to the extent of Rs five lakh are granted.”
The court also directed Golden Bottling Ltd to pay Rs 3.1 lakh as litigation cost to the Scotch Whisky Association.
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