The case before the High Court of Judicature at Bombay involves a dispute between Quality Services & Solutions Private Limited and QSS Inspection and Testing Private Limited over alleged infringement of trademark and copyright, as well as passing off.
The plaintiffs, Quality Services & Solutions Private Limited, claim that they have used the trademark "Quality Services and Solutions" (QSS) since 1999 for their inspection, testing, and certification services across India. They allege that the defendants, who were initially franchisees, have unlawfully registered a similar trademark and have been using it in a manner that could cause confusion among consumers.
The plaintiffs, QSS, and the defendants, QSS Inspection and Testing Private Limited, have a history and relationship marked by an initial franchise agreement. The plaintiffs, QSS, are a leading multinational company in inspection, testing, and certification, while the defendants were initially franchisees operating under the name Quality Services and Solutions (Gujarat).
A Memorandum of Understanding (MoU) was executed between the plaintiff and the defendant franchisee on March 10, 2004, granting limited rights to the franchisee to use the plaintiff's trademark in relation to their services, operating on a commission basis. Over time, changes occurred in the management and ownership of both parties. Defendant No. 2, who started as an employee of QSS, became the Managing Director of QSS in 2019. However, after a change in the management of QSS, following the acquisition of a majority shareholding by Plaintiff Nos. 2 and 3, Defendant No. 2 ceased to be a Director of QSS.
The plaintiffs allege that the defendants, while still franchisees, filed and registered a similar trademark to that of QSS, which was discovered when QSS attempted to register their logo, leading to a legal notice being sent to the defendants to cease and desist from using the QSS mark.
The defendants argue that the MoU between the parties was abandoned, and they have been using the trademark with the plaintiffs' knowledge and consent. They contend that the plaintiffs have not objected to their use of the trademark until recently, and thus, the plaintiffs' claims are barred by acquiescence and waiver.
The court finds that the plaintiffs have a strong prima facie case for urgent interim relief, noting that the defendants' use of the trademark was permissive under the MoU and that the defendants have not established acquiescence or abandonment of the MoU.
The court is particularly concerned about the actions of Defendant No. 2, who was the Managing Director of the plaintiff company when the allegedly infringing trademark was registered. The court grants ad-interim relief to the plaintiffs, restraining the defendants from using the plaintiffs' trademark and copyright.
Case Citation: Quality Services And Solutions Private Ltd. Vs Qss Inspection And
Testing Private Limited :09.07.2024:[COMM IP (L) NO. 13174 OF 2024:Bombay High Court:N.J.Jamadar H. J.
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Advocate Ajay Amitabh Suman
IP Adjutor [Patent and Trademark Attorney]
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