KFC Wins Trademark Dispute against KKFC after Eight-Year Legal Battle

American multinational company KFC has won a trademark dispute against Krispy, Krunchy Fried Chicken (KKFC) eight years after filing its complaint.

A bench at the Department of Industry ruled in favor of KFC, barring KKFC from operating business under the brand name. The decision was issued on February 8.

Three trademark-related cases filed by KFC since 2017 were pending at the department, which decided for a single hearing on the cases, according to Joint Secretary Shree Krishna Paudel.

While the verdict in favor of the globally renowned brand signals Nepal's commitment to intellectual property protection, corporate lawyer Surendra Tiwari noted that taking eight years to resolve a matter that should conclude within months is inappropriate.

"Such complaints should have concluded within 90 days," said Tiwari, Managing Partner at Imperial Law Associates. "But this case took years."

The department's decision does not represent the final resolution of the dispute. Although KFC has won at the department level, KKFC may appeal to the Patan High Court.

"Even with a win at the department bench, the case may proceed to Patan High Court," Paudel said. "The losing party, KKFC, may file an appeal."

KFC, a world-famous brand, had filed complaints in 2017 alleging that business operations under the similar-looking brand "KKFC" were unlawful. KKFC had applied to the department for a certificate to operate business, prompting KFC to submit an application opposing permission for business operation under a similar brand and nature. Legal provisions prohibit trademark registration that causes harm to another brand.

According to Tiwari, Nepal has become more vigilant in protecting intellectual property of internationally-renowned brands in recent years. Previously, the Supreme Court ruled in favor of Perfetti Van Melle of Italy, manufacturer of Center Fruit chewing gum, in a case against Nepali company Perfect Food. Perfect Food had produced and distributed chewing gum under the name "Perfect Center Feelz."