Arshad 'Chaiwala' launches UK trademark action against ex-business partner

Pakistan’s viral “Chaiwala” Arshad Khan has launched legal proceedings at the UK Intellectual Property Office (UKIPO) seeking the invalidation of a insignia (figurative trade mark) registered by his former UK business partner Nadir Khan Durrani, escalating a long-running dispute over the ownership and commercial use of Khan’s name, image and Café Chaiwala brand.

The application has been brought by Arshad Khan and his business partner Syed Kazim Hasan in a UK court claim against Nadir Khan Durrani over the alleged violation of contract, abuse of trust and illegal and unauthorised use of the trade mark. 

In documents filed for the applicants, Kulachi Solicitors allege that Durrani registered a figurative mark incorporating Arshad Khan’s likeness after the business relationship between the parties had ended and at a time when, according to Khan and Hasan, he no longer had permission to use their intellectual property.

Arshad Khan became an international social-media sensation in 2016 after photographer Javeria Ali photographed him making tea at an Islamabad roadside tea stall.

His distinctive blue eyes and appearance turned the young tea seller into an overnight celebrity across Pakistan, India and elsewhere.

In 2021, the business moved towards international expansion when a UK Master Franchise Agreement was signed with Nadir Khan Durrani and Yawar Akbar Durrani, court claim says. When the dispute over non-payments started over “Café Chaiwala Arshad Khan” on Ilford in East London, Yawar Akbar Durrani resigned from the UK company. 

The relationship between Khan and Durranis deteriorated amid disputes over royalties, branding, contractual obligations and intellectual-property rights. Nadir Durrani, for his part, disputed Khan’s version of the commercial relationship and maintained that the UK operation had developed significant elements of the business independently.

The UK franchise relationship was formally terminated on April 8, 2025. They argue that the Master Franchise Agreement had given the UK partners only limited and conditional rights to use the Café Chaiwala Arshad Khan intellectual property during the franchise relationship. 

Brothers Asif Khaliq and Yousuf Khaliq are now the real Master franchise owners of Arshed Khan Chaiwala brand, they operate a popular Cafe Chaiwala Arshad Khan in Tooting and are set to open several cafes in the UK in the next few months.

Their case is that Durrani nevertheless applied on August 19, 2025, more than four months after the alleged termination, to register the disputed figurative mark in his own name. The applicants argue that this amounted to a bad-faith application under Section 3(6) of the Trade Marks Act 1994.

They further allege that the mark incorporates a direct representation of Arshad Khan’s face and likeness and that Durrani had no continuing consent or licence allowing him independently to register Khan’s image as a commercial trademark after termination of the franchise relationship. They claim continued commercial use of his likeness could therefore lead ordinary customers to believe that businesses displaying the image remain authorised, sponsored, endorsed or controlled by Khan.

The legal filing alleges that the disputed logo has continued to be used in connection with café businesses in Ilford and Slough without Khan’s consent. 

Nadir Durrani has maintained that the UK operation had invested significantly in developing the cafés and alleged that it had received insufficient operational and marketing support from the franchisor. He has said he will contest the claim.

The tribunal will now have to determine the legal merits of the applicants’ challenge, including whether the circumstances surrounding its registration amount to bad faith and whether the applicants have established the rights and goodwill upon which their challenge relies.