Territorial test for foreign trademarks
A foreign company suing an Indian firm for violating its trademark by “passing off” goods in the domestic market must prove that it had sufficient goodwill, reputation and market here. This is called the territorial principle accepted globally, and the Supreme Court also adopted it in its judgment, Toyota Jidosha vs Prius Auto Industries. The Japanese car manufacturer claimed that its hybrid commercial vehicle called Prius was launched in that country in 1997 and in India in 2009. The Indian company, which manufactures spare parts for vehicles, registered the name Prius in 2002-03. Toyota sought permanent

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