Background and Plaintiff’s Rights
The plaintiff, Coty Germany GmbH, a globally reputed company in the fragrance industry, holds registered trademarks in India for several well-known brands including “Calvin Klein,” “CK,” “CK One,” “Obsession,” “Eternity,” and “Euphoria.” These trademarks are used in relation to a wide range of perfumes and related goods, with stylized representations forming original artistic works protected under copyright law. Coty also operates the website www.calvinklein.com to promote its products.
Allegations Against the Defendants
Coty alleged that the defendants—Xeryus Retail Private Limited and another entity—were infringing its trademarks by selling Coty’s tester perfumes through unauthorized platforms such as www.perfumery.co.in and www.unboxed.in. These testers, intended only for sampling and not for commercial sale, were being marketed deceptively as retail products. The plaintiff also claimed that the defendants were using marks identical or deceptively similar to Coty’s registered trademarks, thereby indulging in unfair trade practices and passing off their goods as those of Coty’s.
Legal Proceedings and Default by Defendants
The defendants initially filed written statements, which were later struck off due to non-compliance. Subsequently, they stopped appearing in the matter and were proceeded ex parte. Given the defendants' failure to respond, Coty filed an application under Order XIII-A of the CPC (as amended by the Commercial Courts Act, 2015) seeking a summary judgment based on admitted facts and unrebutted evidence.
Court’s Findings and Reasoning
The court accepted Coty's claims, noting that the use of registered trademarks by the defendants for unauthorized commercial purposes, including selling tester products, amounted to trademark infringement, passing off, and copyright violation. Since the defendants failed to appear or contest the allegations, the assertions in the plaint were deemed admitted. The court also found that the defendants’ conduct involved bad faith and constituted an unethical business practice.
Relief Granted
The court granted a permanent injunction restraining the defendants from using the infringing marks or selling tester perfumes as retail products. The court also ordered delivery of infringing goods, disclosure of supply chains, and awarded costs of ₹1,00,000 to Coty, payable by the defendants within four weeks. Other monetary claims like damages and rendition of accounts were not adjudicated in this order.
Conclusion
The decision underscores the seriousness of trademark and copyright violations, especially in the context of deceptive online sales, and reinforces the legal remedies available to brand owners against rogue sellers who misrepresent or misuse their brand identity.
Case Details
Case Title: Coty Germany GMBH Vs. Xeryus Retail Private Limited and Another
Date of Order: July 21, 2023
Case No.: CS(COMM) 1298/2018
Neutral Citation: 2023 SCC OnLine Del 4273
Name of Court: High Court of Delhi
Name of Judge: Hon’ble Mr. Justice C. Hari Shankar