Delhi HC restrains Newgen IT Technologies from using 'Newgen' trademark

Court finds Newgen IT's use of the name deceptively similar to Newgen Software's trademark, upholds injunction originally granted in February and made absolute in March

The Delhi High Court on Thursday dismissed appeals filed by Newgen IT Technologies, upholding an injunction that restrains it from using the “Newgen” mark.

 

The court found the company’s use of the name deceptively similar to that of Newgen Software Technologies, a trademark holder since 1992. It said the present case must be viewed in the context of the prior relationship between the parties.

 

“In this case, it is undisputed that the appellant (Newgen IT Technologies) initially entered the Indian market under the name 'Vcare InfoTech Solutions and Services Pvt Ltd' and, after having formal business relations with the respondent (Newgen Software Technologies), the appellant adopted branding containing the term ‘Newgen’, which closely resembles the respondent's mark. Given the similarity in business activities between the parties, references to unrelated third-party use of ‘Newgen’ are not analogous,” the court said.

 

“The present case would necessarily have to be viewed in the context of the prior relationship between the parties. When viewed through that lens, the appellant's adoption of the mark ‘Newgen’ does not appear to be either innocent or entirely bona fide at this stage,” the court added. 

 

The court emphasised that Newgen Software was the prior user and that the balance of convenience lay in protecting established goodwill. It also ruled that the injunction was not perverse or arbitrary, and noted that even ex-parte relief is justified when there is urgency, such as a pending initial public offering (IPO).

 

“The appellant began rapidly expanding its operations, including initiating steps toward an IPO with this new name. All these circumstances collectively indicate that the test of balance of convenience and inconvenience also clearly tilts in favour of the respondent, as non-grant of the injunction would have caused significant inconvenience and harm to the respondent,” the court said.

 

The injunction was originally granted by a commercial court in February 2025 and made absolute in March, after Newgen Software argued that the appellant’s rebranding—after a short-lived partnership—would confuse consumers and damage its reputation.

 

Rejecting arguments of prior international use and alleged acquiescence, the Division Bench of Justices Navin Chawla and Harish V Shankar said, “The defendant herein has miserably failed to make out a prima facie case… the marks are strikingly similar and capable of causing confusion.”