Friday, June 7, 2024

Marc Salon and Beauty Equipment Pvt. Ltd. Vs GM Sales

Protection of Product Design as a Trademark

Introduction:

In the realm of intellectual property law, the protection of product design as a trademark presents a unique intersection of design, functionality, and brand identity. This analysis explores a recent case involving the plaintiff, a manufacturer of salon furniture, seeking legal redress against a defendant accused of copying their unique shape of product as a trademark and utilizing their promotional materials.

Background:

The plaintiff, a company incorporated in October 2018, specializes in the manufacture and sale of salon furniture, boasting an extensive production and distribution network both domestically and internationally. The company emphasizes its commitment to innovation, with an in-house design and development team dedicated to creating distinctive and high-quality furniture for salons, spas, and parlors. The plaintiff claims that the unique shapes and designs of their products qualify as trademarks under the Trade Marks Act, 1999.

The Dispute:

The plaintiff's grievance centers on the alleged activities of the defendant, who is accused of slavishly copying the plaintiff’s salon furniture designs and misappropriating images from the plaintiff’s website. The plaintiff contends that this constitutes passing off, as the defendant's actions are likely to cause confusion in the marketplace by presenting their goods as those of the plaintiff. Additionally, the defendant's use of a deceptively similar domain name further exacerbates the potential for consumer confusion.

Legal Framework:

Trademark Definition Under the Trade Marks Act, 1999:

According to Section 2(zb) of the Trade Marks Act, 1999, a "trademark" includes any sign capable of being represented graphically and capable of distinguishing the goods or services of one person from those of others. This definition encompasses the shape of goods, which is also covered under Section 2(m) of the Act.

Protection of Unique Designs as a Trademark:

The Act provides a legal basis for protecting the distinctive shapes of products, provided they can be represented graphically and possess the requisite distinctiveness to differentiate them from others in the market.

Passing Off:

The common law tort of passing off protects a business against unfair competition from others who misrepresent their goods or services as those of the plaintiff. This doctrine is crucial in cases where the plaintiff's trademark is not registered but has acquired distinctiveness through extensive use.

Court's Analysis:

The court, upon reviewing the documents and submissions from both parties, concluded that the plaintiff is entitled to an injunction against the defendant for several reasons:

Prima Facie Evidence of Uniqueness:

The plaintiff's designs were found to be unique and distinctive, satisfying the criteria for trademark protection under the Trade Marks Act. The court noted that the plaintiff's designs were indeed capable of distinguishing their goods from those of the defendant.

Defendant's Copying:

The court found substantial evidence that the defendant had copied the plaintiff's designs, merely altering colors or names. This constituted a clear case of passing off, as the defendant sought to benefit from the plaintiff’s established market presence and reputation.

Deceptively Similar Domain Name:

The defendant’s use of a domain name closely resembling that of the plaintiff (www.beautysalonfurniture.in versus www.salonfurniture.in) indicated a dishonest intent to mislead consumers and create an association with the plaintiff’s brand.

Legal Maxims and Principles Applied:

Qui Prior Est Tempore Potior Est Jure:

This maxim, meaning "he who is earlier in time is stronger in law," supports the plaintiff's claim of priority in the use of their unique designs.

Res Ipsa Loquitur:

This principle, meaning "the thing speaks for itself," applies to the evident copying of the plaintiff's designs by the defendant, demonstrating clear intent to deceive.

Semper Necessitas Probandi Incumbit Ei Qui Agit:

The necessity of proof lies on the party who asserts the fact. The plaintiff successfully met this burden by providing substantial evidence of the defendant’s copying and misrepresentation.

Conclusion:

The protection of product design as a trademark under the Trade Marks Act, 1999, reinforces the importance of distinctiveness and originality in commercial goods. In this case, the plaintiff's unique salon furniture designs were rightfully protected against the defendant's infringing activities. The court's decision underscores the legal recourse available to businesses facing unfair competition and emphasizes the significance of trademark protection in preserving brand identity and market position.

Case Title: Marc Salon and Beauty Equipment Pvt. Ltd. Vs GM Sales
Judgement/Order Date: 31.05.2021
Case No. CS Comm 493 of 2023
Neutral Citation: 2023:DHC:4618
Name of Court: High Court of Delhi
Name of Hon'ble Judge: Anish Dayal. H.J.

Disclaimer:

Ideas, thoughts, views, information, discussions and interpretation expressed herein are being shared in the public Interest. Readers' discretion is advised as these are subject to my subjectivity and may contain human errors in perception, interpretation and presentation of the fact and issue involved herein.

Advocate Ajay Amitabh Suman
IP Adjutor [Patent and Trademark Attorney]
United & United
Email: amitabh@unitedandunited.com
Ph No: 9990389539

Jindal Industries Pvt. Ltd. Vs Jindal Sanitaryware Pvt. Ltd.

Role of a Coexistence Agreement in Trademark Injunction

Introduction:

Dispute involves the trademark ‘JINDAL’ in relation to PVC pipes under class 17, a conflict marked by claims and counterclaims from both the plaintiff and the defendant. A crucial factor in this dispute is a pre-existing coexistence agreement between the plaintiff and a third party, Jindal (India) Limited, which plays a pivotal role in the court's decision to decline the plaintiff’s request for an injunction.

Background of the Dispute:

The dispute centers around the use of the mark ‘JINDAL’ on PVC pipes, with both parties asserting prior usage and registration rights. The plaintiff, holding registration no. 2697386 for the word mark ‘JINDAL’ in class 17 and no. 1787420 for a device mark in the same class, claims usage since April 1, 2006. This claim forms the basis of their assertion of prior use and the request for an injunction against the defendant.

On the other hand, the defendant claims to have used the mark ‘JINDAL’ for goods in classes 11 and 20, specifically sanitary and bathroom fittings, since 1981. They possess registrations no. 861968 in class 11 and no. 792571 in class 20. The defendant further claims the use of the mark on PVC pipes and fittings in class 17 since 2006.

Evidentiary Challenges:

A critical examination of the evidence reveals significant gaps in the plaintiff’s claims. The plaintiff has failed to provide conclusive documentation that demonstrates their use of the mark ‘JINDAL’ on PVC pipes as of April 2006 or any subsequent period. Contrarily, the defendant has presented various documents indicating that the plaintiff’s use of the mark on PVC pipes began no earlier than 2022. This discrepancy undermines the plaintiff’s claim of prior use and weakens their position in seeking an injunction.

The Coexistence Agreement:

A pivotal document in this dispute is the coexistence agreement dated May 23, 1989, between the plaintiff and Jindal (India) Limited. This agreement, filed under an application under Order XXIII Rule 3 of the Civil Procedure Code in suit no. 1257/1988, acknowledges both parties as independent owners of the trademark ‘JINDAL’ concerning steel pipes. This mutual recognition of rights establishes a framework for shared reputation and non-exclusivity in certain market segments.

Legal Analysis

Ab Initio and Non Est Factum:

From the outset (ab initio), any claim by the plaintiff to exclusive use of the mark ‘JINDAL’ in class 17 is fundamentally flawed due to the coexistence agreement. The agreement, effectively a non est factum in this context, nullifies the plaintiff’s assertion of exclusivity as it acknowledges the shared use of the trademark with Jindal (India) Limited.

Prior User Doctrine:

Under trademark law, the prior user of a mark typically holds superior rights. However, the plaintiff’s inability to substantiate their claim of use since April 2006, coupled with the defendant’s documented use since 2006, casts doubt on the plaintiff’s position as the prior user. The maxim **semper necessitas probandi incumbit ei qui agit** (the necessity of proof always lies with the person who lays charges) applies here, placing the burden of proof on the plaintiff, who has failed to meet this burden.

Impact of Coexistence Agreement:

The coexistence agreement significantly impacts the plaintiff’s claim. By agreeing to coexist with Jindal (India) Limited for steel pipes, the plaintiff has implicitly accepted a non-exclusive use of the trademark in related markets. The principle **qui approbat non reprobat** (one who approves cannot reject) prevents the plaintiff from now asserting exclusivity over PVC pipes, a product they adopted much later.

Dilution of Exclusivity Claim:

The plaintiff’s historical willingness to share the ‘JINDAL’ trademark with another entity dilutes their current stand for exclusivity. This is particularly relevant given that the plaintiff’s documented use of the mark on PVC pipes only begins in 2022, long after the defendant’s established use. The legal principle **ex turpi causa non oritur actio** (no action arises from a base cause) further weakens the plaintiff’s claim, as their late entry into the market undermines their position.

Conclusion:

The plaintiff’s claim for an injunction against the defendant based on the trademark ‘JINDAL’ for PVC pipes is untenable. The coexistence agreement with Jindal (India) Limited plays a crucial role in this determination, highlighting the non-exclusive nature of the plaintiff’s rights. Coupled with the lack of evidence for prior use and the defendant’s established usage since 2006, the plaintiff’s request for an injunction fails to hold up under legal scrutiny.

Case Title: Jindal Industries Pvt. Ltd. Vs Jindal Sanitaryware Pvt. Ltd.
Judgement/Order Date: 31.05.2024
Case No. CS Comm 251 of 2023
Neutral Citation: 2023:DHC:4609
Name of Court: High Court of Delhi
Name of Hon'ble Judge: Anish Dayal. H.J.

Disclaimer:

Ideas, thoughts, views, information, discussions and interpretation expressed herein are being shared in the public Interest. Readers' discretion is advised as these are subject to my subjectivity and may contain human errors in perception, interpretation and presentation of the fact and issue involved herein.

Advocate Ajay Amitabh Suman
IP Adjutor [Patent and Trademark Attorney]
United & United
Ph No: 9990389539

Thursday, June 6, 2024

Himalaya Global Holdings Limited Vs Rajasthan Aushadhalaya Pvt. Ltd.

Court Grants Ex-Parte Ad-Interim Injunction in Trademark Infringement Case Involving 'Liv.52'

In a significant development in the realm of trademark protection, the Hon'ble Court has granted an ex-parte ad-interim injunction in favor of the plaintiffs, following an application filed under Order XXXIX Rules 1 and 2 of the Civil Procedure Code (CPC). This decision forms part of an ongoing suit seeking a permanent injunction against the defendants for the alleged infringement of the plaintiffs' registered trademark 'Liv.52'.

Background of the Case

The plaintiffs, well-known for their product 'Liv.52', initiated legal proceedings to obtain a permanent injunction against the defendants. The defendants were accused of manufacturing, selling, distributing, promoting, and indirectly dealing in goods and packaging bearing the mark 'LIV-333', which the plaintiffs claim is identical or deceptively similar to their registered trademark 'Liv.52'. In addition to this, the plaintiffs sought attendant reliefs concerning their trade dress and device mark.

Court's Findings

Upon careful consideration, the Court concluded that the plaintiffs have established a prima facie case warranting an ex-parte ad-interim injunction. The Court's findings were based on the following considerations:

Prima Facie Case: The plaintiffs presented compelling evidence that the defendants' use of 'LIV-333' is likely to cause confusion among consumers, infringing upon the plaintiffs' trademark rights.

Balance of Convenience: The Court determined that the balance of convenience favored the plaintiffs. The potential harm to the plaintiffs' brand and consumer trust far outweighs any inconvenience the injunction may cause to the defendants.

Irreparable Harm: The Court acknowledged that the plaintiffs are likely to suffer irreparable harm if the injunction is not granted. This includes loss of goodwill, market share, and potential dilution of their trademark 'Liv.52'.

Injunction Order

As a result of these findings, the Court issued an ex-parte ad-interim injunction effective until the next hearing date. The order specifically restrains the defendants from Manufacturing, selling, distributing, and promoting any goods or packaging bearing the mark 'LIV-333'.
Using any mark that is identical or deceptively similar to the plaintiffs' trademark 'Liv.52'.

Implications:

This ruling highlights the Court's proactive stance in protecting trademark rights and preventing consumer confusion. By granting the ex-parte ad-interim injunction, the Court has temporarily halted the defendants' alleged infringing activities, thereby safeguarding the plaintiffs' interests pending further legal proceedings.

Case Title: Himalaya Global Holdings Limited Vs Rajasthan Aushadhalaya Pvt. Ltd.
Judgement/Order Date: 24.05.2024
Case No. CS Comm 433 of 2024
Neutral Citation: NA
Name of Court: High Court of Delhi
Name of Hon'ble Judge: Anish Dayal. H.J.

Disclaimer:

Ideas, thoughts, views, information, discussions and interpretation expressed herein are being shared in the public Interest. Readers' discretion is advised as these are subject to my subjectivity and may contain human errors in perception, interpretation and presentation of the fact and issue involved herein.

Advocate Ajay Amitabh Suman
IP Adjutor [Patent and Trademark Attorney]
United & United
Ph No: 9990389539

GTZ India Pvt. Ltd. Vs Artek Surfins Chemicals Limited

Section 17(2)(b) of the Trade Marks Act, 1999 and anti-dissection rule

The appeal under scrutiny challenges an order dated February 23, 2024, from the learned Commercial Court, which allowed an application by the respondents under Order 39 Rules 1 and 2 of the Civil Procedure Code (CPC). This article critically analyzes the implications of this decision, particularly in the context of Section 17(2)(b) of the Trade Marks Act, 1999 (TM Act), and the anti-dissection rule.

Background of the Case:

The respondents, plaintiffs in the original suit, sought a permanent injunction to restrain Appellant from engaging in the sale, distribution, manufacture, and advertising of products bearing a unique combination of a numeral and an alphabet, which they claimed as their trademark.

The respondents argued that these alpha-numerals, when combined with their primary trademark ‘TECHNOBRITE,’ had become a source identifier for their products. They alleged that GTZ was using these alpha-numerals to trade on their goodwill and pass off their goods as those of the respondents.

Appellant's Defense: Section 17(2)(b) and Anti-Dissection Rule:

Appellant based its defense on Section 17(2)(b) of the TM Act, which states that if a trademark includes any matter common to trade, the registration of the trademark does not confer any exclusive rights over the common matter. They argued that the alpha-numerals were part of the respondents' trademark and could not independently be claimed as exclusive. Furthermore, Appellant invoked the anti-dissection rule, which mandates that trademarks should be considered in their entirety rather than dissected into their component parts for the purpose of determining exclusivity and infringement.

The Court's Decision:

The court, however, dismissed Appellant’s arguments, providing interpretation of the anti-dissection rule and its exceptions. It acknowledged that while trademarks are typically considered as a whole, there are circumstances where a component of the trademark, if recognized as a source identifier, could warrant separate protection. The court noted that the respondents had successfully established that the specific alpha-numerals used in conjunction with ‘TECHNOBRITE’ were unique identifiers of their products. This finding justified an exception to the anti-dissection rule, granting the respondents protection over the alpha-numerals, even though they were not registered as separate trademarks.

Section 17(2)(b) of the TM Act: A Double-Edged Sword?

Section 17(2)(b) aims to prevent monopolization of common trade elements, ensuring that no trader can claim exclusive rights over commonplace or generic components of a trademark. This provision is critical for maintaining competitive fairness in the market. However, the interpretation and application of this section require a delicate balance. The current case highlights a scenario where rigid adherence to this provision could potentially undermine the distinctiveness and goodwill associated with a composite trademark.

The Anti-Dissection Rule: Flexibility in Application:

The anti-dissection rule is foundational in trademark law, reinforcing the principle that trademarks must be viewed in their entirety. This holistic approach prevents unfair parsing of a trademark to challenge its distinctiveness or validity. However, the court's decision in this case underscores an important flexibility within this rule. When a specific component of a composite trademark gains significant recognition as a source identifier, it can, and perhaps should, be afforded individual protection. This flexibility ensures that trademark law remains responsive to market realities and consumer perceptions.

Implications for Trademark Holders and Legal Practitioners:

The ruling provides valuable insights for trademark holders and legal practitioners. It emphasizes the importance of demonstrating the distinctiveness and source-identifying function of trademark components. Trademark holders should consider collecting evidence of consumer recognition and market association of specific elements of their trademarks. For legal practitioners, this case reinforces the necessity of a strategic approach in trademark litigation, balancing the application of statutory provisions with pragmatic considerations of market dynamics and consumer behavior.

Conclusion:

The court's decision to affirm interim injunction in favor of the respondents marks a significant interpretation of Section 17(2)(b) of the TM Act and the anti-dissection rule. By recognizing the distinctiveness of the alpha-numerals within the composite trademark ‘TECHNOBRITE,’ the court has highlighted the importance of market context and consumer perception in trademark protection.

Case Title: GTZ India Pvt. Ltd. Vs Artek Surfins Chemicals Limited
Judgement/Order Date: 31.05.2024
Case No. FAO Comm 60 of 2024
Neutral Citation:2024:DHC:4539-DB
Name of Court: High Court of Delhi
Name of Hon'ble Judge: Vibhu Bakhru and Tara Vitasta Ganju. H.J.

Disclaimer:

Ideas, thoughts, views, information, discussions and interpretation expressed herein are being shared in the public Interest. Readers' discretion is advised as these are subject to my subjectivity and may contain human errors in perception, interpretation and presentation of the fact and issue involved herein.

Advocate Ajay Amitabh Suman
IP Adjutor [Patent and Trademark Attorney]
United & United
Ph No: 9990389539

Galactus Funware Technology Limited Vs MLP & Ors

Court Grants Ex-Parte Ad-Interim Injunction to Protect ‘MPL’ Trademark in Online Gaming Dispute

In a significant legal development, the Hon'ble Court has granted an ex-parte ad-interim injunction in favor of the Plaintiff, restraining Defendants Nos. 1-4 and their associates from using the Plaintiff's trademarks related to online gaming. This decision follows an application under Order XXXIX Rules 1 and 2 of the Code of Civil Procedure, 1908 (CPC), filed as part of a broader suit seeking a permanent injunction.

Background of the Case

The Plaintiff, owner of the trademarks ‘MPL’ and ‘MOBILE PREMIER LEAGUE,’ along with associated device marks and the trademark ‘MLP,’ filed the application to prevent the Defendants from using these trademarks or any marks deceptively similar to them. The Plaintiff argued that the unauthorized use of these trademarks by the Defendants in the context of online gaming could lead to significant confusion among consumers and damage the Plaintiff's brand reputation.

Court's Findings

Upon reviewing the application, the Court found that the Plaintiff had established a strong prima facie case warranting the issuance of an ex-parte ad-interim injunction. The Court noted the following key points:

Prima Facie Case: The Plaintiff demonstrated sufficient evidence to show that the unauthorized use of their trademarks by the Defendants could cause consumer confusion and harm the Plaintiff's brand.

Balance of Convenience: The Court determined that the balance of convenience favored the Plaintiff. The potential harm to the Plaintiff’s reputation and consumer trust outweighed any inconvenience the injunction might cause to the Defendants.

Irreparable Harm: The Court agreed with the Plaintiff’s contention that they would suffer irreparable harm if the Defendants continued to use the disputed trademarks, as it could lead to a loss of consumer trust and market standing.

Injunction Order

In light of these considerations, the Court issued an ex-parte ad-interim injunction, effective until the next date of hearing. The terms of the injunction are as follows:

Defendants Restrained: Defendants Nos. 1-4 and all individuals acting on their behalf are restrained from using the Plaintiff’s trademarks ‘MPL,’ ‘MOBILE PREMIER LEAGUE,’ and ‘MLP,’ as well as any other marks identical or deceptively similar to the Plaintiff’s trademarks, in connection with online gaming.

Implications and Next Steps

This ruling underscores the Court’s commitment to protecting trademark rights and preventing consumer deception in the rapidly growing online gaming industry. The interim relief granted to the Plaintiff aims to preserve the status quo and prevent any further damage to the Plaintiff’s brand pending the final resolution of the case.

The case will continue to be litigated, with both parties expected to present further evidence and arguments at the next hearing. The outcome of this dispute will be closely watched by stakeholders in the online gaming sector, given its potential implications for trademark enforcement and brand protection.

Case Title: Galactus Funware Technology Limited Vs MLP & Ors
Judgement/Order Date: 27.05.2024
Case No. CS Comm 440 of 2024
Neutral Citation:NA
Name of Court: High Court of Delhi
Name of Hon'ble Judge: Anish Dayal. H.J.

Disclaimer:

Ideas, thoughts, views, information, discussions and interpretation expressed herein are being shared in the public Interest. Readers' discretion is advised as these are subject to my subjectivity and may contain human errors in perception, interpretation and presentation of the fact and issue involved herein.

Advocate Ajay Amitabh Suman
IP Adjutor [Patent and Trademark Attorney]
United & United
Ph No: 9990389539

Federated Hermes Limited Vs John Doe and another

Court Issues Ex-Parte Ad-Interim Injunction Against Fraudulent Use of Federated Hermes Trademarks

In a decisive move to protect both consumers and the reputation of the Federated Hermes brand, the Hon'ble Court has issued an ex-parte ad-interim injunction against unknown individuals or groups identified as Defendant No. 1. This order was granted following compelling evidence presented by the Plaintiff, demonstrating the fraudulent activities conducted by these defendants.

Evidence of Fraudulent Activity

The Plaintiff submitted substantial evidence, including screenshots and other materials, that clearly depict Defendant No. 1’s misuse of the Federated Hermes trademarks. The defendants, operating through various WhatsApp groups, communities, and channels, have been attracting unsuspecting consumers by leveraging the Plaintiff’s well-established reputation. These unauthorized operators have falsely represented themselves as offering financial trading and investment advice, along with platforms for monetary transactions, including purported "VIP accounts."

Misrepresentation and Public Deception

The court noted that the operators and administrators of these groups and channels have not been authorized by the Plaintiff to provide any financial services or advice. By misrepresenting themselves to the public, they have engaged in illegitimate and fraudulent activities designed to deceive unsuspecting consumers into investing substantial sums of money. This fraudulent scheme not only poses a significant risk to public interest but also tarnishes the reputation of the Federated Hermes brand.

Impact on Public and Plaintiff's Reputation

The court acknowledged the detrimental impact of Defendant No. 1’s actions on both the public and the Plaintiff. Consumers, initially attracted by the use of the Federated Hermes trademarks, are likely to associate any financial harm they suffer with the Plaintiff, thereby damaging the Plaintiff’s standing in the market. The court emphasized that such deceptive practices could lead to substantial financial losses for consumers and irreparable harm to the Plaintiff’s reputation.

Court's Ruling

Given the strong prima facie case presented by the Plaintiff and the significant public interest involved, the court concluded that an ex-parte ad-interim injunction was necessary to prevent further harm. The court’s order aims to halt the fraudulent activities of Defendant No. 1 immediately, thereby protecting consumers from potential financial exploitation and safeguarding the integrity of the Federated Hermes trademarks.

Conclusion

This ruling underscores the court’s commitment to protecting both consumers and businesses from fraudulent schemes that exploit well-known trademarks. By granting the ex-parte ad-interim injunction, the court has taken a critical step in curbing deceptive practices and maintaining public trust in reputable brands. The case highlights the importance of vigilance and swift legal action in combating trademark misuse and consumer fraud.

Case Title: Federated Hermes Limited Vs John Doe and another
Judgement/Order Date: 28.05.2024
Case No. CS Comm 454 of 2024
Neutral Citation:NA
Name of Court: High Court of Delhi
Name of Hon'ble Judge: Sanjeev Narula. H.J.

Disclaimer:

Ideas, thoughts, views, information, discussions and interpretation expressed herein are being shared in the public Interest. Readers' discretion is advised as these are subject to my subjectivity and may contain human errors in perception, interpretation and presentation of the fact and issue involved herein.

Advocate Ajay Amitabh Suman
IP Adjutor [Patent and Trademark Attorney]
United & United
Ph No: 9990389539

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