VIP Industries Limited has informed the Exchange about General Updates on the recent development and clarification on status of the litigation proceedings relating to the usage of the trademark "CARLTON" by the company in India in connection with the travel luggage.
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VIP Industries has updated the stock exchanges on the ongoing trademark dispute over the 'CARLTON' brand for travel luggage in India. The cases (CS (COMM) No. 730 of 2019 and CS (COMM) No. 52 of 2020) remain pending before the Delhi High Court, with VIP fighting Carlton Shoes Limited for the right to use the brand. The Supreme Court has allowed VIP to sell off its existing 'Carlton' inventory in India until June 1, 2026. A new development has emerged: competitor Safari Industries has acquired a long-term license to use the 'Carlton' trademark in India from Carlton Shoes Limited, which VIP says is puzzling given the matter is sub-judice. VIP is instructing its distributors to clearly differentiate its products to avoid customer confusion. The company clarified that its global 'Carlton' luggage business is unaffected, as the brand is registered in several overseas jurisdictions.
Short-term uncertainty for the Indian 'Carlton' brand as a competitor (Safari) now has a license to use the same name, which may cause market and customer confusion. However, VIP retains the right to clear existing inventory, and its international business — a meaningful revenue contributor — remains untouched. The stock may see volatility due to the competitive and legal overhang, but the clarification is largely aimed at reassuring investors and distributors.