In the world of business, there is no abundance of examples in which smaller companies took on large enterprises and delivered them some huge blows. The Chinese electronics giant Asus has also become the target of one such blow. The company has lost a critical lawsuit filed against its Zenfone brand in the world’s largest and fastest growing smartphone market. The consequence of losing in this lawsuit is that the company may have to rebrand its entire smartphone lineup in India. It was a trademark battle fought in the Delhi High Court of India, and interestingly, the company to which Asus has lost is a much smaller one in comparison.
Why Asus is rebranding its entire smartphone lineup in India
It’s no secret that Asus sells its smartphones under the Zenfone brand around the globe. However, that same Zenfone brand may now cease to exist in India, thanks to a little-known company called Telecare Network. This company sells smartphones with ‘Zen’ and ‘ZENMOBILE’ trademarks in India. By now you might have got an idea of what has happened – Telecare accused Asus of stealing its trademark, and a lawsuit was filed in Delhi High Court. During the proceedings of the lawsuit, Telecare claimed that it has been selling smartphones under the Zen and ZenMobile brands since 2008, while Asus entered the Indian market in 2014. The problems were compounded by the fact that both companies are involved in the same business, and are offering similar products at similar prices.
Asus, on the other hand, argued that its Zenfone brand name is based on company founder Jonney Shih’s belief in Zen philosophy and the brand has got associated with Asus. Delhi High Court, however, ruled in favor of Telecare and ordered Asus to stop selling its devices under the Zenfone brand from 23rd of July.
Now, it’s certainly not the end of the road for Asus Zenfone brand. The company still has a chance to say something at the next hearing scheduled for July 10, and if the court still doesn’t change its decision then Asus can also file an appeal in Supreme Court. But for some reason, if none of these things work out, Asus may have to rebrand its entire smartphone lineup in India.
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