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Amanj Ali, the owner of a small restaurant in Bury, England, learned a costly lesson about trademark infringement when he named his business “Tesla Chicken & Pizza.”
Ali registered the name in the UK Intellectual Property Office without issue, but Tesla soon caught wind and initiated legal action. After two years of litigation, the court ruled in favor of Tesla, ordering Ali to change the restaurant’s name and pay a fine of £12,000 (approximately €14,000).
Here’s a breakdown of what happened:
- Ali registered “Tesla Chicken & Pizza” in the food and beverage category.
- Tesla filed an intellectual property infringement claim in November 2021.
- The restaurant refused to stop using the name, prompting a lawsuit from Tesla.
- After two years of legal battles, the restaurant was fined £12,000 (around €14,000).
Why did Ali lose?
- Tesla already had the trademark registered for automotive-related goods and services.
- The restaurant’s use of the name “Tesla” could create confusion among consumers.
- Ali negotiated in bad faith, demanding an exorbitant amount to give up the name.