What Is The Impact Businesses Using Similar Names?

Can common Indian names like “Neha” be registered and protected as trademarks? Indeed, the Delhi High Court has recently resolved this question as part of its decision in the widely publicized NEHA trademark matter, thus clarifying the extent to which businesses can assert exclusivity over personal names under the Trademark Act, 1999. 

The Court found that such names are not prohibited from registration, however, the protection afforded will depend upon the name having attained a secondary meaning; that is, distinctiveness caused by normal and substantial use in the marketplace. This is a helpful decision for companies that use common Indian names in their branding as it strikes a good balance between protecting genuine goodwill, and preventing monopolies over cultural names.  

The Real Issue: Can Common Names Be Trademarks?

In trademark law, distinctiveness is everything. A brand name must help customers identify your products and not confuse them with someone else’s.

From practice, it is seen how:

• Invented names like “Pepsi” or “Nike” enjoy strong protection.
• Common names like “Neha” or “Ravi” often struggle unless they’ve built a unique identity in the market.

The Court in the NEHA case confirmed exactly this principle, common names are not rejected outright, but they must earn protection through secondary meaning.

How the Dispute Began: Sahni Cosmetics vs. Neha Herbals

It was advised by a client in the cosmetics industry facing a similar problem. Their concern was, “What if another company uses my brand name after years of effort?”

That’s exactly what happened here:

• Sahni Cosmetics said it had been using “NEHA” for face creams since 1990.
• Neha Herbals started using “NEHA” for mehendi and herbal products in 1992.

When Sahni tried to cancel Neha Herbals’ registration, the Court demanded solid proof of use. And here’s the turning point, Sahni didn’t have reliable records, while Neha Herbals produced strong evidence like packaging, sales invoices, and income tax returns.

What the Court Said About Evidence?

In trademark cases, what you say matters far less than what you can prove.

The Delhi High Court listed the kind of proof needed:

• Long-term and continuous use
• Turnover figures and invoices
• Advertising spends and promotions
• Market surveys or consumer recognition

As a lawyer, it is advised to clients that: “Start keeping records from day one.” Even small bills or advertising receipts can later decide whether your brand survives in court.

Same Trademark Class is not Equal to Same Rights

Many clients ask, “If two companies register under the same class, will there always be a conflict?” The NEHA case shows the answer is no.

The Court explained:

• Face creams and mehendi may fall under the same class (Class 3- cosmetics), but they serve different purposes.
• Consumers are unlikely to confuse the two.
• So, concurrent use of “NEHA” was allowed.

This was a big relief for small businesses. It means you’re not automatically in trouble just because someone else in your class has a similar name, context matters.

Key Takeaways from the Judgment

From client experiences, here’s what this case teaches every business:

1. Common Names = Weak Protection: Don’t assume exclusive rights just because you registered a name like “Anita” or “Ravi.” You’ll need evidence of public association.
2. Evidence Can Win or Lose Your Case: Always maintain records, sales, ads, packaging. I’ve seen strong documentation turn weak cases into victories.
3. Two Companies Can Use the Same Name: If products are functionally distinct, the Court may allow both to co-exist.
4. Invest in Brand Building: Advertising, customer loyalty, and consistent market presence can give common names the distinctiveness courts require.
5. No Monopolies Over Cultural Names: The law ensures fairness; nobody can claim sweeping ownership over names that are part of Indian culture.

Conclusion

The NEHA judgment is a wake-up call. Using a common Indian name for your brand is not illegal, but protecting it will require uncommon effort. Courts won’t grant blanket exclusivity without proof that your brand has earned a place in the consumer’s mind.

Treat documentation as your legal shield. If you ever face a dispute like Sahni vs. Neha, the evidence you build today could save your brand tomorrow.

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FAQs

1. Why are common Indian names considered weak trademarks?

Because they are widely used in society. Unless backed by strong consumer association, courts view them as lacking inherent distinctiveness.

2. What is “secondary meaning” in trademark law?

It means a common name has, through consistent use and advertising, become strongly linked with a single business in the consumer’s mind.

3. If my trademark application for a common name is refused, what can I do?

You can appeal the decision or refile with stronger evidence of use, such as turnover records, media coverage, or survey reports.

4. How can startups avoid legal disputes over names?

By conducting a trademark search early, avoiding generic/common names, and building brand distinctiveness through advertising and consistent use.