District court dismisses case filed by Sweden's IKEA against Aikya Global

A district court in New Delhi has dismissed a trademark violation case filed by Sweden's IKEA against Bengaluru-based consulting company Aikya Global for allegedly using a phonetically similar sounding name as that of the world's largest furniture retailer.

In 2013, IKEA had dragged about a dozen local companies, including Aikya and HR firm Ikya Human Capital Solutions, to courts over trademark infringement and received ex parte injunction against them. The injunctions prompted Aikya Global to change its name to Ajira Global. In June 2015, the New Delhi court had vacated the injunction against Aikya, now ruling in favour of the local company.

The dismissal comes even as IKEA is planning to open its inaugural store in Hyderabad later this year. Mumbai is next on the destination list of the Swedish furniture retailer that views India as crucial to its growth strategy. Sweden’s largest retailer has already received government approval to invest Rs 10,500 crore – the largest foreign direct investment in single brand retailing - to set up 25 large stores, typically in the range of 3,50,000 sq ft each and stocking thousands of items.

In the court documents, Inter IKEA Systems BV, the owner of IKEA and various other trademarks of the Swedish retailer had accused that Aikya had "copied and imitated" the trademark that is "wholly and absolutely similar, identical with and deceptively similar" to IKEA.