The Delhi High Court has since issued an interim injunction to prevent Mumbai-based Sarda Trading Company and its business partners from selling Yahoo-branded tea, Asia Times Online reported.
In securing the temporary victory, Yahoo?s legal advocate Pravin Anand argued that Yahoo's trademark and name should be extended to items such as books and clothing, and not just online services.
Yahoo added that it has co-branding agreements with ice-cream maker Ben & Jerry's and retail chain 7-Eleven, under which the Yahoo trademark can be used for candies, ice-cream and other products.
Anand also cited previous legal triumphs, including the prosecution of an Indian entrepreneur who was forced to surrender his ?yahooindia? domain name.
Things will continue to simmer between the tea company and Yahoo until March 10 when the hearing continues.
CNETAsia's Winston Chai reported from Singapore.