Calvin Klein Trademark Trust & Anr.Vs Guru Nanak International

Case Title:Calvin Klein Trademark Trust & Anr.Vs  Guru Nanak International & Ors.:Date of Order:December 8, 2023  :Case No.: CS(COMM) 75/2020  :Neutral Citation:2019:DHC:2185  :Name of Court:Delhi High Court  :Name of Judge: Hon'ble Justice Prathiba M. Singh  

Facts::The plaintiffs, Calvin Klein Trademark Trust and Tommy Hilfiger Europe B.V., filed a suit against the defendants, including M/s Sazia Garments, for the unauthorized sale of counterfeit products using their registered trademarks 'Calvin Klein,' 'CK,' and 'TOMMY HILFIGER.' The defendants were found to be engaged in manufacturing and selling counterfeit clothing items, as evidenced by a local commissioner's report which documented the presence of counterfeit goods and manufacturing equipment at the defendant's premises.

Legal Issue:The primary legal issue revolved around the infringement of registered trademarks and the appropriate remedies, including the award of damages and injunctions against the defendants for their activities.

Reasoning:The court reasoned that the extensive evidence provided by the plaintiffs, including the local commissioner’s findings of counterfeit products and absence of the defendant's response during proceedings, justified the conclusion that the defendants intentionally infringed on the plaintiffs' trademarks. Emphasis was placed on the settled legal position that a local commissioner's report can be admitted as evidence in the absence of any objection. The court cited previous judgments that reiterate the principles for awarding damages in trademark infringement cases, particularly when the infringement involved deliberate and calculated actions.

To calculate the quantum of damages, the court considered several factors, including:

Extent of Infringement: The court assessed the quantity of counterfeit goods seized from the defendant's premises, which demonstrated the scale of infringement.

Defendant's Conduct:The court noted that the defendant's actions were deliberate, with an intent to exploit the plaintiffs' brand reputation, leading to significant economic impact on the plaintiffs.

Precedent Cases: The court referenced prior cases to establish a benchmark for damages in similar circumstances. Existing standards for compensatory damages and the severity of the infringement guided the amount awarded.

Potential Losses to Plaintiffs: The court evaluated the loss of goodwill and potential sales experienced by the plaintiffs due to the unauthorized sale of counterfeit goods, which contributed to the assessment of monetary compensation.

Decision:The court decreed a permanent injunction restraining the defendants from using the plaintiffs' trademarks. It awarded damages amounting to Rs. 10 lakhs along with costs of Rs. 1 lakh to the plaintiffs. The plaintiffs were permitted to seize and destroy the counterfeit goods found at the defendants' premises, or alternatively, donate the goods after removing the counterfeit labels.