This case centers around a trademark dispute between Rainbow Children’s Medicare Limited (the appellant), a well-known chain of pediatric and women’s healthcare hospitals with registered trademarks under the name “Rainbow,” and Rainbow Healthcare (respondents), a proprietorship firm operating in Bengaluru under a similar tradename since 2013. The central contention relates to the alleged infringement and passing off of the appellant’s registered trademarks, and the legal scrutiny over whether the respondents’ use of a similar mark amounts to dishonest adoption or legitimate concurrent usage.

Detailed Factual Background:
Rainbow Children’s Medicare Limited was incorporated in 1998 and commenced operations as a pediatric super-speciality hospital in Hyderabad. Over the years, it has expanded to 16 hospitals and 3 clinics across India, serving pediatric and gynecological needs. The appellant adopted the trademark “Rainbow” in 1998 and subsequently secured multiple registrations in Classes 42 and 44 of the Trademarks Act. It claimed to be the prior adopter and user of the term “Rainbow” in relation to healthcare services and asserted that its mark had gained substantial goodwill and reputation over two decades.

During routine checks, the appellant discovered that the respondents were using the name “Rainbow Healthcare” in Bengaluru, with listings on platforms such as Justdial and Practo, and through their website. The appellant issued a cease-and-desist notice on November 28, 2022, asserting its prior rights. However, the respondents responded by claiming prior use since 2013 and continued using the mark.

Detailed Procedural Background: The appellant filed Com.O.S. No. 538/2023 before the LXXXII Additional City Civil and Sessions Judge, Bengaluru (Commercial Court), seeking interim injunctions under Order XXXIX Rules 1 and 2 of the Code of Civil Procedure. Initially, the trial court granted an ex parte interim injunction on April 20, 2023. However, after hearing both sides, the trial court vacated the interim injunction through orders dated June 18, 2024, dismissing IA Nos. II and III. The appellant challenged these orders in Commercial Appeals (COMAP Nos. 286 and 287 of 2024) before the High Court of Karnataka.

Issues Involved in the Case: Whether the appellant, being the prior user and registered proprietor of the mark “Rainbow” for healthcare services, is entitled to an interim injunction against the respondents using “Rainbow Healthcare."? Whether the respondents' use of the mark “Rainbow Healthcare” amounts to trademark infringement and passing off?Whether delay or acquiescence disentitles the appellant from seeking interim injunctive relief?

Detailed Submissions of Parties: The appellant contended that it was the first adopter and continuous user of the mark “Rainbow” since 1998 and had registered several trademarks across different jurisdictions and languages. It argued that its brand had become synonymous with high-quality pediatric and gynecological care, and the respondents’ use of a deceptively similar name created confusion among the public and amounted to infringement and passing off under Sections 28 and 29 of the Trademarks Act, 1999.

The respondents argued that they had been operating under the name “Rainbow Healthcare” since 2013, before the appellant commenced operations in Bengaluru in 2015. They produced supporting documents such as trade licenses, pollution control authorizations, and income tax returns to substantiate their claim of continuous and bona fide use. The respondents also argued that the appellant suppressed the existence of an earlier cease-and-desist notice from 2021 and failed to approach the court with clean hands.

Detailed Discussion on Judgments Cited: The appellant relied on several precedents, including:Midas Hygiene Industries P. Ltd. v. Sudhir Bhatia [(2004) 3 SCC 90], where the Supreme Court held that once infringement is established, injunction should follow even if there is some delay.Laxmikant V. Patel v. Chetanbhai Shah [(2002) 3 SCC 65], reinforcing the doctrine that passing off claims can succeed solely on the strength of reputation and likelihood of confusion.Max Healthcare Institute Ltd. v. Sahrudya Health Care Pvt. Ltd. [2019 SCC OnLine Del 9036], where Delhi High Court held that even absence of trademark registration cannot save a subsequent user if prior reputation and confusion are established.

In contrast, the respondents relied on: Intel Corporation v. Anil Hada [MANU/DE/9767/2003], where the Delhi High Court declined injunction due to long concurrent use by the defendant and absence of dishonest intent. Gujarat Bottling Co. Ltd. v. Coca Cola Co. [(1995) 5 SCC 545], where the Supreme Court discussed the principles governing grant of interim injunction and held that conduct and delay may influence the court’s discretion. McDonald's Corporation v. Sterling's Mac Fast Food [ILR 2007 Karnataka 3346], where the Karnataka High Court emphasized honest concurrent use and business scale of the junior user in determining trademark disputes.


Detailed Reasoning and Analysis of Judge: The High Court considered the trial court’s order in great detail. While it agreed with the trial court that the appellant had established a prima facie case and was a prior user of the mark “Rainbow” for healthcare services, it concurred that the balance of convenience and irreparable harm tilted in favor of the respondents.

The court noted that the respondents had continuously used the mark “Rainbow Healthcare” since 2013, as evidenced by various regulatory and tax documents. The appellant, despite operating in Bengaluru since 2015, only took legal action in 2023, which showed a delay that could not be explained away as mere oversight.

The court also accepted that the respondents’ adoption of the name “Rainbow Healthcare” was not prima facie dishonest, especially in view of the narrative that the name was independently coined based on its pediatric specialization and fascination with rainbows and reaffirmed the principle that once infringement is established, injunction should follow even if there is some delay.

Final Decision: The High Court dismissed the appeals and upheld the orders of the trial court vacating the interim injunction. It ruled that the appellant, though a prior user and registered proprietor of the trademark “Rainbow,” failed to establish the essential ingredients warranting interim relief in the form of an injunction against the respondents.

Law Settled in this Case: This case reinforces the principle that prior use and trademark registration, though significant, are not conclusive in granting interim injunctions. The courts must balance factors including long concurrent use, delay, acquiescence, and honest adoption. In trademark disputes involving similar marks in the same class of services, the nature of adoption, knowledge, and conduct of the parties assume critical importance. Mere registration does not guarantee injunctive relief where equitable considerations disfavor it.

Case Title: Rainbow Children’s Medicare Limited Vs. Rainbow Healthcare
Date of Order: April 23, 2025
Case No.: COMAP Nos. 286 & 287 of 2024
Neutral Citation: 2025/KAR/HC/0423
Name of Court: High Court of Karnataka, Bengaluru
Name of Judge: Hon’ble Mr. Justice V. Kameswar Rao and Hon’ble Mr. Justice T.M. Nadaf

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Written By: Advocate Ajay Amitabh Suman, IP Adjutor - Patent and Trademark Attorney
Email: ajayamitabhsuman@gmail.com, Ph no: 9990389539