The Karnataka High Court on Tuesday ordered maintenance of status quo with regard to a contract that Nike India Pvt. Ltd., multi-national sportswear and equipment company, entered into with cricketer Virat Kohli to endorse its products, sats a report in The Hindu, adding that Justice Huluvadi G. Ramesh, before whom the appeal filed by Nike India came up for hearing, ordered issue of emergent notice to Mr. Kohli.
The company questioned the order of a civil court in Bangalore that had refused to grant an ex-parte injunction, restraining Mr. Kohli from soliciting, negotiating or entering into any agreement with any third party with respect to the endorsements or services covered by in its contract.
According to a report in the Times Of India, Nike claimed that as per the contract clauses, it had the right/option to seek extension of the contract period by one year till July 31, 2014. The company claims Kohlinot only refused but also threatened to disparage the brand in a June 10 letter.
"The trial judge has failed to appreciate that if Kohli enters into any agreement with the third party in the interregnum, the same would cause hardship to us as any endorsement of a rival brand would cause immeasurable damage to our brand," the firm claimed.
Nike had in its suit sought for a declaration to the effect that the contract is valid till July 2014. The firm had claimed that it had paid Kohli Rs 1.42 crore, apart from giving him for free sports products worth Rs 12 lakh.