Dassault Systèmes & Ors. v. Advanced Engineering Solutions & Anr.

Case Title: Dassault Systèmes & Ors. v. Advanced Engineering Solutions & Anr.

Date of Order: 21st February 2025

Case No.: CS(COMM) 378/2020

Neutral Citation: , 2025:DHC:1104

Name of Court: High Court of Delhi

Name of Judge: Hon’ble Mr. Justice Amit Bansal

Facts:

Dassault Systèmes and its subsidiaries, owners of widely used CAD, CAM, and CAE software such as SOLIDWORKS, CATIA, and SIMULIA, filed a suit against Advanced Engineering Solutions and its director for copyright infringement. Dassault licenses its software through an End-User License Agreement (EULA) and a Customer License and Online Services Agreement (CLOSA). The plaintiffs alleged that the defendants were using unauthorized versions of their software and had been identified through their infringement detection system. Despite multiple legal notices and attempts to resolve the issue amicably, the defendants neither ceased the unauthorized use nor paid the requisite licensing fees. The plaintiffs sought a permanent injunction, damages, and other reliefs.

Issues:

Whether the defendants' use of the plaintiffs' software without a valid license constituted copyright infringement.

Whether the plaintiffs were entitled to compensatory damages for the unauthorized use of their software.

Whether an ex-parte decree should be passed against the defendants in light of their failure to contest the suit.

Reasoning and Analysis:

The plaintiffs provided extensive evidence, including infringement reports, legal notices, and an independent investigator’s affidavit, confirming unauthorized use of their software. The court found that the defendants had not responded to multiple notices and continued to use the software without valid licenses. The defendants’ failure to appear in court after an initial hearing further indicated their unwillingness to contest the allegations. The plaintiffs’ claim for damages was supported by evidence, including the estimated licensing fees that the defendants would have paid if they had lawfully acquired the software. The Delhi High Court Intellectual Property Rights Division Rules, 2022, were relied upon to determine the quantum of damages. The court found that the unauthorized use of software deprived the plaintiffs of revenue and granted damages accordingly.

Decision:

The court passed a decree of permanent injunction restraining the defendants from using unauthorized versions of the plaintiffs' software. The defendants were ordered to deliver up all unlicensed copies and associated materials. The court awarded compensatory damages of Rs. 2,78,34,320 and costs of Rs. 3,21,000 to the plaintiffs. The decree sheet was directed to be drawn up, and all pending applications were disposed of.