Trade Mark Squatting of South Korean Skincare Brand “Beauty of Joseon” in India

Goodai Global Inc. (“Goodai”), the company behind South Korean skincare brand “Beauty of Joseon” filed a rectification petition to have a trade mark registered by individual Shahnawaz Siddiqui (“Shahnawaz”), removed from the Trade Marks Register in India. This trade mark was filed on 3 October 2022, and consists of Korean alphabets (transliterated to “Joseon Mi Nyeo” and “Cracle In”) and the English words “Beauty of Joseon”. The removal of this trade mark has since been granted by the High Court of Delhi. 

Launched internationally in 2010, Goodai started distributing the “Beauty of Joseon” products in India via multiple platforms since August 2022. For its rectification petition, Goodai relied on arguments that Shahnawaz did not have any legitimate basis for registration of the trade mark, as Goodai has prior rights to the same. Further, there was misappropriation of Goodai’s well-known brand. Shahnawaz did not file any response. 

The High Court noted that there was no proper reason for Shahnawaz to adopt a trade mark which is so deceptively similar to a South Korean skincare brand, other than to ride on the goodwill and reputation attributed to Goodai’s business by virtue of its “Beauty of Joseon” brand. Shahnawaz also separately filed an application to register the word mark “Beauty of Joseon” in December 2023, and Goodai has since filed an opposition against this trade mark. 

This case is an example of trade mark squatting, where a third party registers a trade mark similar or identical to one that is used by a legitimate brand owner but which the brand owner may not have registered in that particular country of concern. Trade mark squatting may take place to mislead customers that the third party is related to the brand owner, or with the intention to profit from transferring the registered trade mark to the brand owner eventually if the brand owner is willing to pay a high price for the transfer. 

As a brand owner, you are advised to conduct constant due diligence and monitoring for any trade mark squatting affecting your rights, as well as to ensure that you have secured trade mark protection in countries where you have operations in or intend to expand your business to. If not handled properly, the need to deal with trade mark squatters at a later stage not only causes financial losses, but also delays your business expansion plans. What is worse is the potential damage to your reputation when trade mark squatters have already used the registered trade marks to sell and distribute products in the market and consumers are misled into thinking that those products belong to your business.