Hero Electric moves Delhi HC, seeks arbitration proceedings against Hero Motocorp over trademark row

Hero Electric, the market leader in the electric two-wheeler segment, has approached the Delhi High Court seeking arbitration proceedings against Hero Motocorp over the use of the 'Hero' trademark, CNBC TV 18 reported on January 5.

The Naveen Munjal-led Hero Electric has claimed exclusive rights under the family pact to stop Hero MotoCorp from using the Hero brand name, the news channel reported.

In its plea, the company has sought an injunction against Hero Motocorp over the use of 'Hero' brand name for its upcoming electric vehicle slated for launch in March.

The Delhi HC will decide on Hero Electric's petition for arbitration proceedings against Hero Motocorp, CNBC TV 18 said.

#Hero Electric led by Naveen Munjal seeks arbitration proceedings

Delhi HC to decide on #HeroElectric's plea for arbitration proceedings against @HeroMotoCorp

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Hero #Electric has claimed exclusive rights under the family pact to stop Hero MotoCorp from using the Hero brand name pic.twitter.com/msY33wYEvE

— CNBC-TV18 (@CNBCTV18Live) January 5, 2022

While Hero Electric is led by Naveen Munjal, Hero Motocorp is headed by his uncle Pawan Munjal. The two companies are market leaders in their respective segments.

Tensions began brewing between them since Hero Motocorp began preparing for the launch of its first set of two-wheelers under the electric vehicle segment.

Naveen Munjal, while speaking to Moneycontrol in July last year, said "there is a very clear agreement within the family which happened when we did the restructuring in 2010 on how the brands are going to be used".

"There was no non-compete (clause) as far as product segments are concerned, which means anybody could get into any segment but there exists a very strong non-compete clause for brand usage," Munjal had claimed.

Notably, Hero MotoCorp joined hands with Taiwan’s Gogoro in April last year to develop Hero-branded electric vehicles (EVs) for the Indian market. In addition, Hero MotoCorp has been working independently on EVs at its R&D facilities.