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Colombo HC prevents Abans using McDonald’s brand name

24 March 2024 02:43 pm - 32     - {{hitsCtrl.values.hits}}

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Colombo, March 24 (Daily Mirror) - The Colombo Commercial High Court issued an  enjoining order preventing Rusi Pestonjee, Managing Director of Abans PLC or his servants from in any way or manner to use the name McDonald’s or any name in any way or manner similar to the name McDonald’s.

Comercial High Court Judge Sumith Perera further issued an enjoining order preventing Rusi Pestonjee from selling McDonald’s food and menu items in respect of restaurants in Kotahena,  Nugegoda, Kiribathgoda, Battaramulla, Kollupitiya, Rajagiriya, Welisara, Mount Lavinia, Colombo City Centre, Macleod Road restaurant and Shangri-La restaurant.

These enjoining orders will be effective till April 4.

The Commercial High Court made this order consequent to a lawsuit filed by McDonald’s Corporation, a duly incorporated body in the United States of America  which sought court's jurisdiction under the provisions of the Intellectual Property Act, No. 36 of 2003.

 The plaintiff is the owner of the names “McDonald’s”, “McDonald’s Hamburgers”, “McDonald’s Family Restaurants”. The plaintiff states  that it has developed an iconic reputation throughout the world in relation the name McDonald’s. The plaintiff further states that the plaintiff is the sole proprietor of McDonald’s Restaurants and  what is known as the McDonald’s System. 

The plaintiff states that it has terminated the right of the defendant to use the name McDonald’s or any name in any way or manner similar to the name McDonald’s and to use any name which would convey to the public that the said restaurant is in any way or manner connected to the McDonald’s.

The plaintiff and the defendant Rusi Pestonjee entered into a Developmental Agreement dated 21st August 1997 containing terms and conditions.

The plaintiff further states that the basis of the Development Agreement has ceased to exist due to the actions of the defendant. The plaintiff further states that the plaintiff does not desire the defendant to be a franchisee and to operate any restaurant under the name McDonald’s.

The plaintiff is further seeking a declaration that the defendant has no right to use the name McDonald’s and/or any name in any way or manner similar to the name McDonald’s. 

Dr. Romesh De Silva PC instructed by Sanath Wijewardane appeared for the plaintiff.

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  Comments - 32

  • Boris Vanculenberg Sunday, 24 March 2024 03:06 PM

    Thank you

    Court Jester Sunday, 24 March 2024 03:29 PM

    Now we can try Mc A.buns from April. All made in Sri Lanka. Buns with a local taste.

    Ahmad Sunday, 24 March 2024 03:43 PM

    Can somebody explain why this is happening ? i thought abans owns Mc Donald's franchise in sri lanka

    Mahila Monday, 25 March 2024 04:44 AM

    This is a clear indication that that Franchise arrangement has been ANNULED!!?? For whatever reason, GOOD or BAD!!?? Probably there was reason for dispute, otherwise there wouldn't have resorted to Judicial Restraining Order!!??

    senaka Monday, 25 March 2024 05:50 AM

    you see their service

    Nandana Monday, 25 March 2024 08:10 AM

    May be Abans have violated the Franchise agreement. For example maybe Abans did not maintain the quality standards as stipulated in the franchise agreement. I am just guessing.

    Maheshan Sunday, 24 March 2024 05:19 PM

    No foreign or local company will work with AB anymore if they cannot respect the signed agreements. Very poor work ethics by so called major company in SL. No wonder the quality of food went down recently at AB.

    Indi Sunday, 24 March 2024 06:09 PM

    There are much better Sri Lankan burger restaurants than McDonald's right now. McDonald's is now a "has-been". High prices, low value. Bye McDonald's.

    Haris Sunday, 24 March 2024 06:27 PM

    Abans thought they could bush all the hygiene issues under the carpet like they do with all there other businesses. Enough rats

    The Abans previously run McDonald’s were a disgrace Sunday, 24 March 2024 06:36 PM

    There has been too many health issues for persons, and many time asking PHI to come look into the Abans run previous McDonald’s. Good finally US company decided their brand is made worth less with Abans being a franchisee.

    Kumar Sunday, 24 March 2024 06:58 PM

    It's definitely a late decision by Mcdonald's corporation after running out of options. I already wondered how this chain was running well in Srilanka when I noticed it's ridiculous prices. There was no way you can keep the customers and standard well, there after the health and safety regulation.

    Senarath Jampetty Sunday, 24 March 2024 07:19 PM

    Or his servants? This is 2024 lets refrain from using such crude terms such as calling employees as servants.

    Jeanne Monday, 25 March 2024 03:12 AM

    @Senarath : Sounds like you've got a bit of a chip on your shoulder. What is so "crude" about the word? Last time I checked it was a legal word, and it meant the same as "employee". Ever heard of the universal term "government servant"? There are more offensive words being used on social media and tbh "servant" doesn't even come close. Ridiculous, narrow-minded comment!!!

    Mahila Monday, 25 March 2024 05:02 AM

    Employees 'SERV' the EMPLOYERS directive/command!? Nothing Else!!?? Because they "SERV", they are SERVANTS of those who EMPLOY!? Well, there is no need to bring other connotations (SRI LANKAN TYPE) of the word 'SERVANT' into this Legal document!!! Means what is supposed to!!?? Deprive use the COMMAND or DIRECTIVE of one's Employer!!!??? Employer, Contractor, Renter, or any other Subservient Type, all inclusive!!?? Block all escape route as always evidenced in SL by Lankans in multitude of Instances to go around the LAW – Evasive!!???

    Jampetty with Dementia and Chlamydia Monday, 25 March 2024 06:26 AM

    Jampetty? I know you ain’t talking with such name mate. I’d love to meet your parents and give them the award for being the biggest troll

    Punchi Sunday, 24 March 2024 07:41 PM

    Reuters is reporting that McDonald's went to court against Abans ie terminated the franchise agreement over allegations of poor hygiene.

    Paul Muller Sunday, 24 March 2024 08:28 PM

    Anyway the worst Mac Donalds I have ever come across worldwide . Lousy quality . Even worse than the usual Abans service . Shame for Mac Donalds

    Alex Monday, 25 March 2024 06:24 AM

    Looks like you have gone to worldwide Mac Donalds but not to Mcdonald's

    Jeanne Monday, 25 March 2024 01:31 PM

    @Paul : Who the hell is Mac Donald? Are you confusing this with Old Mac Donald's farm?!!

    Nimal Rajakaruna Monday, 25 March 2024 02:25 AM

    Why do Sri Lankans need McDonalds or even Pizza at all ? Own Sri Lankan burghers or if not pastries, patties are much better and good for the health isn't it?

    Jeanne Monday, 25 March 2024 04:29 PM

    @Nimal : Did you want fries with your Burghers? Dutch burghers or Portugese burghers?

    Bandu Monday, 25 March 2024 04:15 AM

    At least McDonalds monitor their food quality. How about local restaurants? Its worse hygiene

    Sepali Monday, 25 March 2024 05:48 AM

    About time. Standards dropped after COVID.

    Sunil Monday, 25 March 2024 07:09 AM

    If you want to get health problems, then go to Macdonalds. Learn to eat fat free simple food to be free from diabetes, cholesterol, heart problems etc

    Jayasinghe Monday, 25 March 2024 07:15 AM

    If Abans hygiene is poor, then just imagine other food outlets in Sri Lanka where hygiene is monitored by PHIs who could be corrupt and bought over by food outlet owners because I hear some get free food.

    Anil Fernando Monday, 25 March 2024 09:31 AM

    You cannot call it a Fast food restaurant. Service is so slow. KFC , Burger King are no better.

    Mfb Monday, 25 March 2024 09:40 AM

    When compare to other countries Sri Lanka Macdonald's Burgers are very small and NO tasty. Even the French fries the quantity is very small not worth for the money you spend. Basically they were cheating the customer. It’s very good Mac USA terminated the contract.

    Fahim MUFAKKIR MU'TAZILAH (FAHIM reasons) Monday, 25 March 2024 09:41 AM

    I'm suspicious if there's some sabotage at play, given the poor service from Abans' sales staff. At the Kolupitiya branch, near the main McDonald's, they sold me a faulty Abans brand rice cooker at three times its market price. Disappointed, I threw it away. Abans ought to consider bringing in a private detective from overseas to look into this. The only dedicated Abans salesperson I've met was the young man at Colombo 2 Mall, tirelessly promoting their cars.

    shane Monday, 25 March 2024 09:42 AM

    same thing will happen to LG - after sales service is absurd.

    Mfb Monday, 25 March 2024 09:47 AM

    Good decision by Mac USA for terminating the contract with Abans. It’s a reputationsl risk for Mac USA. Good move.

    Tilak Monday, 25 March 2024 09:58 AM

    Burger available at Slave Island Junction is cheaper and mire tasty

    NV Jen Monday, 25 March 2024 03:44 PM

    Abans have put their hands into too many fields and are unable to manage anything in a proper manner, resulting in overall customer dissatisfaction, according to many affected clients.

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