Khaitan & Co represented Indkal Technologies in securing interim relief against Acer Inc.
The leading law firm in India, Khaitan & Co, successfully represented Indkal Technologies Private Limited (Indkal) in securing urgent interim relief against Acer Inc., the Taiwanese parent company of the Acer group. The dispute arose after Acer attempted to unilaterally terminate a long-term Trademark License Agreement dated 14 December 2020, despite years of successful performance by Indkal in the Indian market.
The Agreement, valid until 2031, had enabled Indkal to manufacture and distribute Acer-branded products in India. Over this period, Indkal sold more than 10,00,000 units, generated revenues of over INR 2,195 crore, paid royalties of USD 5.18 million (approx. INR 43.45 crore), and invested heavily in marketing and promotion, including INR 37.4 crore on brand building. Orders worth over INR 150 crore are presently in the pipeline for the Diwali season. Acer’s reliance on stray consumer complaints was shown to be grossly exaggerated, with the actual ratio being less than 0.001% of units sold—well within contractual thresholds.
The Commercial Court, Bengaluru, after hearing both sides, passed an order on 12 September 2025 restraining Acer, its affiliates, and agents from acting in furtherance of the termination notice dated 19 August 2025. The Court found urgency in the matter and protected Indkal’s contractual rights by granting an injunction from termination, with the injunction to continue depending on the outcome of pending applications. The matter raises complex questions of law involving specific performance of contract in relation to non-determinable commercial contracts.
This significant victory preserves not only the past revenues and royalties already earned but also safeguards future projected revenues of over INR 12,800 crores over the next four years. The order ensures continuity for Indkal’s operations, protects its distributor and supplier network, and shields the investments already made in building the Acer brand in India.
The Khaitan & Co team representing Indkal included Sanjeev Kapoor (Partner), Nikhilesh Rao (Partner), Aakash Bajaj (Partner), Dhritiman Roy (Counsel), Avinash Balakrishnan (Counsel), and Sania Abbasi (Associate).
Click to know more about Khaitan & Co
If you have a news or deal publication or would like to collaborate on content, columns, or article publications, connect with the Legal Era News Network Team and email us at [email protected] or call us on +91 8879634922.