Hero MotoCorp Allowed To Use ‘Hero’ Trademark For EVs
The ‘Hero’ trademark can be used by Hero MotoCorp Ltd for selling its upcoming range of electric vehicles, the Arbitration Tribunal has said. The tribunal, appointed by the Delhi High Court allowed Hero MotoCorp to manufacture and sell electric vehicles under the ‘Hero’ name. The tribunal was appointed to resolve the dispute between two factions of the Munjal family group. It dismissed the application filed by Hero Electric for an interim injunction against Hero MotoCorp for using the brand ‘Hero’ for its electric vehicles.
Also Read: Hero Electric Moves Court To Claim Hero Brand For EV Business
According to reports, the tribunal observed that Hero MotoCorp had publicly asserted its manifest intention to use the name ‘Hero’ for its business of electric vehicles since 2012 and it was close to the commercial launch of its electric vehicles under the brand ‘Vida - Powered by Hero’. The launch of the first electric scooter under the ‘Vida’ brand, which was supposed to happen in July, has been postponed till the festive season.
Rejecting the plea filed by Naveen Munjal-led Hero Electric, the Arbitration Tribunal emphasised Hero MotoCorp’s significant investments of Rs. 400 crore in the business of electric vehicles and expenses of nearly Rs. 7,000 crore in ‘Hero’ brand building over the last ten years. Comparatively, the Naveen Munjal Group invested only Rs. 65 crore in the promotion of ‘Hero Electric’. In the interim, the Arbitration Tribunal ruled that Hero Electric’s case was unjustified. After final consideration of the case, the Tribunal would now conclude the matter.
Also Read: Hero MotoCorp Announces New EV Brand 'Vida'
Hero Electric’s Naveen Munjal has been engaged in a legal battle with his uncle and Hero MotoCorp chairman Pawan Munjal, claiming that his family had exclusive ownership rights of the brand ‘Hero’ for eco-friendly products.
Under a family agreement in 2010, which simplified the Hero businesses, Hero group patriarch Brijmohan Lall Munjal’s family got control of Hero MotoCorp and Hero Corporate Services, among others. Under that agreement, the global rights for Hero Electric are with Pawan Munjal's cousin, Vinay Munjal, and his son Naveen Munjal. Hero Cycles, Hero Motors and Munjal Sales Corporation were earmarked for Om Prakash Munjal, whose son Pankaj Munjal is currently chairman of Hero Cycles.