Daawat Loses Its Logo to Amira Foods

London SW1W 9NF, UK, August 5, 2015 (Newswire.com) - Basmati rice brand Daawat is set to lose its brand logo — depicting a Mughal woman cooking rice — after a Delhi court ruled that it has violated the trademark held by another basmati producer, Amira Foods, which had filed a petition for trademark violation.

In another petition filed by Amira Foods claiming Rs 10 crore damages from LT Foods, owners of the Daawat brand, for using its registered trademark, the court allowed the two companies to settle the matter out of court after they expressed the desire to withdraw the case.

Amira Foods’ advocate, Shravan Kumar Bansal, told Financial Chronicle that the company agreed to withdraw its suit after LT Foods agreed for an out-of-court settlement. LT Foods said it is restructuring the brand with a new trademark symbol in 60 days as directed by the court.

“As part of the settlement, the court has removed its restrictions on sale and distribution of our products. Daawat is a string brand and we will restructure it now with a new logo,” said LT Foods chairman and managing director, Vijay Kumar Arora.

Earlier in February, the Patiala court in Delhi had instructed LT Foods and its distributors to refrain from sale, distribution and advertisement of products bearing the copyrighted trademark of Amira Foods.

The court has also appointed a local commissioner with powers to seize all products bearing the logo in LT Food’s various facilities. All packaging materials, printing blocks and publicity materials bearing the symbol were seized.

In the third quarter results of the current fiscal, the company’s net profit slowed to Rs 5.71 crore compared with Rs 13.95 crore in the same period last year. LT Foods’ sales volume for 2009-10 stood at Rs 1,052 crore against Rs 1,060 crore in the previous year.

Amira Foods claimed it has emerged “stronger” after the litigation. “Our overseas businesses are doing very well along with our domestic products. We are happy we got justice and will continue to use the same logo in all our products,” said company chairman Karan A Chanana.

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