Friday, June 21, 2024

Infosys Llimited Vs Southern Infosys Limited

Dishonest Adoption of Trade Name and Interim Injunction

Introduction:

This case delves into a recent legal dispute where Infosys Limited, a global leader in information technology and consulting services, sought judicial intervention to prohibit the unauthorized use of its well-known trademark 'INFOSYS' by 'Southern Infosys Limited'. The case underscores the implications of trademark infringement, particularly under Section 29(5) of the Trademarks Act, 1999.

Case Background:

Infosys Limited, established in 1981, has garnered a formidable reputation in the IT and consulting sectors, with a market capitalization of approximately 93.6 billion USD. As the registered proprietor of the trademark 'INFOSYS', the company has built a robust brand identity recognized globally. The Plaintiff, Infosys Limited, filed a lawsuit under Section 29(5) of the Trademarks Act, 1999, against the Defendant, Southern Infosys Limited, to restrain the latter from using 'INFOSYS' as part of its trade name.

Legal Framework: Section 29(5) of the Trademarks Act, 1999

Section 29(5) of the Trademarks Act, 1999, is a crucial provision addressing trademark infringement through the use of a registered trademark as part of a corporate or trade name. This section stipulates that infringement occurs if:

1. A registered trademark is used as part of the Defendant's trade name or corporate name.
2.
3. The Defendant engages in business activities concerning the goods or services for which the trademark is registered.

Unlike other sub-sections of Section 29, which require proof of public deception or dilution of the trademark, Section 29(5) necessitates only the above conditions for establishing infringement. This provision emphasizes the protection of well-known trademarks against misuse in corporate nomenclature.

Facts of the Case:

The Plaintiff contended that the Defendant's adoption of 'INFOSYS' as part of its corporate name, 'Southern Infosys Limited', constituted infringement of its well-known trademark. Infosys Limited's trademark 'INFOSYS' had been declared a well-known mark by both judicial recognition and the trademark registry, enhancing its protection under the law.

The Dishonesty on part of Defendant in changing its Trade Name

The Defendant, originally named 'Disha Financial Services Limited', changed its corporate name to 'Southern Infosys Limited' on 30th September 1998, with the approval of the Registrar of Companies, N.C.T. of Delhi and Haryana. This change occurred after Infosys Limited had already established substantial rights in the 'INFOSYS' trademark.

Court’s Analysis and Interim Injunction:

The court examined the legal principles underpinning trademark infringement, focusing on Section 29(5) of the Act. The court found that the Defendant’s use of ‘INFOSYS’ in its corporate name directly contravened the Plaintiff’s trademark rights. Given that the Defendant’s business activities overlapped with those for which ‘INFOSYS’ was registered, the court held that the conditions for infringement under Section 29(5) were satisfied.

The court recognized the extensive recognition and distinctiveness of the ‘INFOSYS’ trademark, which significantly raised the likelihood of consumer confusion. The potential for consumers to mistakenly associate ‘Southern Infosys Limited’ with Infosys Limited was deemed substantial.

On a prima facie assessment, the court noted that the Defendant’s activities could lead to consumer confusion, suggesting an association between 'Southern Infosys Limited' and Infosys Limited. This misassociation could damage the Plaintiff’s brand reputation and erode consumer trust.

Grant of Interim Injunction:

Accordingly, the court granted an interim injunction against the Defendant, restraining them from using 'INFOSYS' as part of their corporate name. The decision underscored the necessity of protecting well-known trademarks from unauthorized use, particularly when such use could mislead consumers and tarnish the trademark’s goodwill.

Conclusion:

The case of Infosys Limited vs. Southern Infosys Limited highlights the critical importance of trademark protection in maintaining brand integrity and preventing consumer confusion. Section 29(5) of the Trademarks Act, 1999, serves as a robust legal mechanism to safeguard registered trademarks from being misused in corporate nomenclature. The judicial intervention in this case not only protected Infosys Limited's trademark rights but also sent a strong message about the legal repercussions of dishonest adoption of trade names.

Case Citation: Infosys Llimited Vs Southern Infosys Limited:27.05.2024:CS Comm 257 of 2024:2024:DHC:4724:Delhi High Court: Sanjeev Narula, H.J.

Disclaimer:

The information shared here is intended to serve the public interest by offering insights and perspectives. However, readers are advised to exercise their own discretion when interpreting and applying this information. The content herein is subjective and may contain errors in perception, interpretation, and presentation.

Written By: Advocate Ajay Amitabh Suman
IP Adjutor [Patent and Trademark Attorney]
Email: ajayamitabhsuman@gmail.com
Mob No.:+91-9990389539

Rajat Sharma Vs X Corp and others

Right of Public Criticism Versus Personality Right

Abstract:

This case explores the conflict between the right to public criticism and personality rights through a recent legal case involving a prominent Indian journalist and TV anchor. The case highlights the tension between protecting individual dignity and upholding freedom of speech. By examining the factual background, legal reasoning, implications, and conclusions, this article provides a comprehensive analysis of the broader legal principles at play in such disputes, emphasizing the delicate balance courts must maintain.

Factual Background:

The plaintiff, Rajat Sharma, a well-known Indian journalist and TV anchor, also serves as the Chairman and Editor-in-Chief of Independent News Service Private Limited (India TV). Renowned for his credible reporting, courage, and public interest advocacy, Sharma's personality rights were previously recognized by the court. On January 11, 2019, in the case of *Rajat Sharma and Anr. vs. Ashok Venkatramani & Anr.*, the court restrained the defendants from using Sharma's name in any manner. More recently, on May 30, 2024, in *Independent News Service Pvt. Ltd. & Anr. vs. Ravindra Kumar Choudhary & Ors.*, the court issued an order preventing the defendants from using Sharma's name and photograph.

The current dispute arose when defendants Nos. 4 to 6 posted allegedly defamatory statements on the social media platform 'X' (formerly Twitter) and held a press conference on June 10-11, 2024. They accused Sharma of using abusive language during a live debate on India TV on June 4, 2024. Sharma contended that these statements were false and had significantly harmed his reputation, prompting him to seek an injunction for the deletion of the tweets and other defamatory content from social media.

Reasoning:

The court's reasoning in this case hinged on balancing two fundamental rights: the right to free speech and expression, and the right to personal dignity. The former is enshrined in Article 19(1)(a) of the Indian Constitution, while the latter is protected under Articles 14 and 21, which encompass the right to equality and the right to life and personal liberty, respectively.

Assessment of Defamation: The court examined whether the statements made by the defendants were indeed defamatory. Defamation, in this context, involves the publication of a false statement that injures a person's reputation. The court found that the defendants' statements were not only false but also damaging to Sharma's reputation, as they were widely disseminated and believed to be true by a significant audience.

Public Criticism vs. Defamation: The court recognized the importance of public criticism in a democratic society. However, it emphasized that such criticism must be truthful and not based on fabricated facts. The court noted that while public figures are subject to higher scrutiny and criticism, this does not give license to spread false information that harms their reputation.

Prima Facie Evidence: The court relied on prima facie evidence, which indicated that the videos and tweets were manipulated to misrepresent the facts. This misrepresentation was deemed an intentional effort to malign Sharma's reputation, rather than a legitimate exercise of free speech.

Imminent Threat: Given the persistent nature of digital content, the court highlighted the imminent threat posed by the continued presence of defamatory statements online. This potential for ongoing harm justified the need for immediate injunctive relief.

Legal Implications:

The court's decision to grant an injunction has significant legal implications for the intersection of personality rights and freedom of expression:

Precedent for Personality Rights: The case reinforces the legal precedent that personality rights, particularly for public figures, must be protected against false and defamatory statements. This protection extends to preventing the unauthorized use of names and images.

Responsibility of Social Media Platforms: The ruling underscores the responsibility of social media platforms to act against defamatory content. Platforms must ensure that false and damaging statements are promptly removed to prevent harm to individuals' reputations.

Balance of Rights: The decision highlights the delicate balance courts must strike between protecting free speech and preventing defamation. This balance is crucial in maintaining democratic values while safeguarding individual dignity.

Duty of Truthfulness: The case emphasizes the duty of individuals to remain truthful when exercising their right to free speech. False and sensationalized statements that harm others' reputations are not protected under the guise of free expression.

Threshold for Public Figures: Public figures, by virtue of their position, have a higher threshold for defamation claims. This means that the statements made against them must be proven to be false and made with malicious intent. In this case, the court found that the defendants' statements met this threshold, as they were intentionally false and aimed at damaging Sharma's reputation.

Truth as a Defense: The primary defense in defamation cases is the truth of the statements made. However, the defendants failed to provide any substantial evidence to support their claims that Sharma used abusive language. The court noted that the burden of proof lies with the defendants to show that their statements were true, which they could not do in this instance.

Public Interest and Malice: While statements made in the public interest are generally protected, the court found that the defendants' statements were not made in good faith but were instead malicious and intended to harm Sharma's reputation. This distinction is crucial in defamation cases involving public figures, where the intent behind the statements plays a significant role in determining their legality.

Impact of Digital Media: The court also considered the unique challenges posed by digital media, where false statements can quickly spread and cause widespread harm. The ruling emphasized the need for stringent measures to prevent the misuse of digital platforms for defamation, reinforcing the responsibility of social media companies to monitor and remove harmful content.

The case of Rajat Sharma versus his detractors provides a comprehensive framework for understanding the legal and social dynamics at play in defamation disputes involving public figures. The court's decision reinforces the importance of truthful public discourse and the protection of personal dignity, setting a significant precedent for future cases in this evolving area of law.

Case Citation: Rajat Sharma Vs X Corp and others:14.06.2024:CS Comm 495 of 2024:2024:DHC:4757:Delhi High Court: Meena Bansal Krishna, H.J.

Disclaimer:

The information shared here is intended to serve the public interest by offering insights and perspectives. However, readers are advised to exercise their own discretion when interpreting and applying this information. The content herein is subjective and may contain errors in perception, interpretation, and presentation.

Written By: Advocate Ajay Amitabh Suman
IP Adjutor [Patent and Trademark Attorney]
Email: ajayamitabhsuman@gmail.com
Mob No.:+91-9990389539

Thursday, June 20, 2024

Louis Dreyfus Company Pvt. Ltd. Vs Nutralite Agro Products Pvt. Ltd.

Replication in Commercial Dispute Cannot Be Filed Beyond 45 Days of Receipt of Written Statement

Abstract:

This case examines the legal implications of failing to file a replication within the prescribed 45-day limit in commercial disputes, with reference to the Delhi High Court (Original Side) Rules, 2018, and the landmark judgment in *Ram Sarup Lugani & Anr. v. Nirmal Lugani & Ors.*, (2021) 276 DLT 681 (DB). A specific case is analyzed where the Plaintiff sought condonation for a 164-day delay in filing the replication, highlighting the strict adherence to procedural timelines in the commercial court framework.

Factual Background:

The present suit was initiated by the Plaintiff seeking damages and loss of profits from the Defendant due to the Defendant's failure to complete contractual obligations dated October 22, 2020, concerning the supply of Indian Origin Corn to Louis Dreyfus Company Asia Pte. Ltd. Following the filing of the written statement by the Defendant, the Plaintiff delayed filing the replication by 164 days, well beyond the permissible 45-day period.

The Plaintiff filed an application for condonation of this delay, invoking the Court's discretion to allow the late filing of replication. However, the relevant procedural rules and judicial precedents pose significant hurdles to the Plaintiff's request.

Reasoning:

In commercial disputes, procedural rules are strictly enforced to ensure expedient resolution of cases. The Delhi High Court (Original Side) Rules, 2018, specifically Rules 4 and 5, set definitive timelines for filing written statements and replications. These rules aim to streamline judicial processes and minimize unnecessary delays.

The judgment in *Ram Sarup Lugani & Anr. v. Nirmal Lugani & Ors.*, (2021) 276 DLT 681 (DB) serves as a pivotal reference point. The Division Bench in this case unequivocally stated that the maximum time limit for filing a replication is 45 days from the receipt of the written statement. This decision underscores the judiciary's commitment to maintaining procedural discipline and upholding the statutory timelines prescribed under the rules.

In the present case, the Plaintiff's application for condonation of a 164-day delay must be examined against this backdrop of stringent procedural adherence. The Plaintiff's justification for the delay, whether based on logistical challenges, oversight, or other reasons, will be scrutinized against the principle of procedural rigor emphasized in the *Ram Sarup Lugani & Anr. v. Nirmal Lugani & Ors.*, (2021) 276 DLT 681 (DB) judgment. Thus Court refused to condone the delay in filing the replication. The refusal to condone substantial delays in filing replications aligns with these principles, reinforcing the importance of adhering to procedural timelines.

Concluding Note:

Court's refusal to grant condonation of delay of more than 45-days in filing the replication after receipt of written statement highlights the judiciary's commitment to procedural efficiency and discipline. The Delhi High Court (Original Side) Rules, 2018, and the authoritative judgment in *Ram Sarup Lugani & Anr. v. Nirmal Lugani & Ors.*, (2021) 276 DLT 681 (DB) establish a clear mandate for strict adherence to procedural timelines in commercial disputes.

Case Citation:Louis Dreyfus Company Pvt. Ltd. Vs Nutralite Agro Products Pvt. Ltd.:10.01.2024:CS Comm 538 of 2020:2024:DHC:238:Delhi High Court:Prathiba M Singh, H.J.

Disclaimer:

The information shared here is intended to serve the public interest by offering insights and perspectives. However, readers are advised to exercise their own discretion when interpreting and applying this information. The content herein is subjective and may contain errors in perception, interpretation, and presentation.

Written By: Advocate Ajay Amitabh Suman
D/1027/2002 [United & United]
IP Adjutor [Patent and Trademark Attorney]
Email: amitabh@unitedandunited.com
Mob No.:+91-9990389539

Gulati Trading Company Vs Shri Man Mohan Verma

Impermissibilty of Arguments Beyond Pleadings

Abstract:

This article examines a rent control revision petition filed under Section 25-B(8) of the Delhi Rent Control Act, 1958, challenging the judgment of the Additional Rent Controller (ARC). The petitioner's leave to defend application was dismissed, primarily contesting the respondents' ownership of the property and their bona fide need for eviction. The High Court of Delhi upheld the ARC's decision, emphasizing that arguments not raised in initial pleadings cannot be entertained later.

Factual Background:

The petitioner, a tenant, filed for leave to defend against an eviction petition initiated by the respondents under the Delhi Rent Control Act, 1958. The eviction was sought on the grounds of bona fide necessity. The petitioner contested the respondents' status as owners/landlords and questioned their bona fide need for the premises.

The ARC's judgment noted that the suit property was recorded in the house tax records of the Municipal Corporation of Delhi (MCD) under the respondents' names, who also paid the property tax. Consequently, the ARC dismissed the petitioner's application for leave to defend, leading to this revision petition under Section 25-B(8) of the Act.

Before the High Court, the petitioner raised new arguments, including the assertion that the bona fide necessity petition was barred by limitation. The Court, however, declined to entertain these arguments as they were not mentioned in the original leave to defend application.

Reasoning:

Ownership and Landlord Status:

The ARC, relying on the house tax records and tax payments, affirmed the respondents as the owners/landlords of the suit property. The MCD records provided substantial evidence of ownership, which the petitioner failed to counter with credible evidence.

Bona Fide Necessity:

The petitioner challenged the bona fide necessity claim, but this argument was secondary to the ownership issue. The ARC found the respondents' claim of needing the property for personal use credible, dismissing the petitioner's objections.

Arguments Beyond Pleadings:

The High Court emphasized procedural discipline, noting that the petitioner attempted to introduce new arguments at the appellate stage. Legal principles stipulate that issues not raised in initial pleadings (leave to defend application) cannot be entertained later. This ensures fairness and consistency in legal proceedings.

Legal Implications:

Strict Adherence to Pleadings:

This case underscores the importance of raising all pertinent arguments and defenses at the earliest stage. Courts strictly adhere to this principle to maintain procedural integrity and avoid prejudicing either party.

Evidentiary Standards in Rent Control Cases:

The reliance on municipal records to establish ownership highlights the evidentiary standards in rent control cases. Proper documentation and timely tax payments are critical in substantiating ownership claims.

Bona Fide Necessity:

The court's handling of bona fide necessity claims demonstrates that such assertions must be credible and well-substantiated. Tenants must provide concrete evidence to counter landlords' claims of personal need for the property.

Concluding Note:

The decision in this rent control revision petition reinforces several key legal principles in landlord-tenant disputes. Firstly, it emphasizes the necessity of raising all relevant arguments in initial pleadings to avoid procedural dismissal. Secondly, it highlights the significance of municipal records in proving ownership and the need for tenants to present compelling evidence when contesting bona fide necessity claims.

For legal practitioners, this case serves as a critical reminder to meticulously prepare pleadings and ensure all potential defenses are raised early in the litigation process. For landlords and tenants alike, it illustrates the importance of maintaining proper documentation and understanding the procedural requirements that govern rent control disputes.

The High Court's ruling affirms the foundational principle that arguments beyond pleadings are impermissible, ensuring procedural fairness and consistency.

Case Citation: Gulati Trading Company Vs Shri Man Mohan Verma: 13.08.2024: RC. REV. 274/2013:2014:DHC:3880:Delhi High Court: Valmiki Mehta 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.

Written By: Advocate Ajay Amitabh Suman
D/1027/2002 [United & United]
IP Adjutor [Patent and Trademark Attorney]
Email: amitabh@unitedandunited.com
Mob No.:+91-9990389539

Abros Sports International Vs Ashish Bajaj

Phonetic dissimilarity of Trademark and Denial of Injunction

Background:

The plaintiff, an Indian company with the trade name 'ABROS,' registered its trademark and has been using it since June 2020. The defendant, Ashish Bansal, registered the mark 'NEBROS' in September 2019 on a 'proposed to be used' basis and claims actual use since September 2020. The plaintiff sought an injunction against the defendant, alleging that 'NEBROS' is deceptively similar to 'ABROS' and would cause confusion among consumers. Refusal of interim injunction by the Court based on following factos.

The court's decision hinges on the following key points:

1. Phonetic, Visual, and Structural Dissimilarity:

The court observed that the trademarks 'ABROS' and 'NEBROS' do not exhibit distinct phonetic similarity. 'ABROS' and 'NEBROS' differ in pronunciation, with the initial consonant sounds 'A' and 'N' creating a distinct auditory experience. Additionally, there is no visual or structural similarity between the two marks in their representation. The overall appearance and impression created by each mark are distinct enough to avoid consumer confusion.

Proof of Use:

The defendant submitted proof of using the mark 'NEBROS' since September 2020. In contrast, the plaintiff's first invoice to show the use of 'ABROS' dates back to 2021. The plaintiff's claim of prior use by its predecessor, M/s. Narmada Polymers, since 2017, lacked documentary evidence to substantiate this assertion. Therefore, the court found the defendant's claim of prior use to be more credible.

Lack of Substantiation for Prior Use:

The plaintiff's argument that the mark 'ABROS' was used by its predecessor since 2017 was not supported by any concrete evidence. In trademark disputes, the burden of proof lies heavily on the claimant to establish prior use and market presence convincingly. The absence of documentation or other forms of substantiation weakened the plaintiff's position.

Case is evaluated in terms of Passing off Action:

As both of the parties were the registered proprietor, the Court evaluated the relief in terms of Passing off Action.

Consumer Confusion and Market Presence:

For an injunction to be granted in passing off cases, the plaintiff must demonstrate a likelihood of consumer confusion. Given the differences in phonetic, visual, and structural aspects of the two marks, the court concluded that consumers are unlikely to confuse 'ABROS' with 'NEBROS.' The market presence and the timeline of use further reinforced the defendant's position.

Conclusion:

The court denied the plaintiff's request for an injunction against the defendant's use of the 'NEBROS' mark. The decision underscores the importance of distinctiveness in trademark representation and the necessity of substantiating claims with concrete evidence. The ruling highlights that mere allegations of similarity and prior use are insufficient without compelling proof.

This case exemplifies the critical factors courts consider in trademark disputes, particularly the need for clear evidence of prior use and the potential for consumer confusion. The distinct phonetic, visual, and structural characteristics of the marks 'ABROS' and 'NEBROS' played a pivotal role in the court's determination that there was no infringement warranting an injunction.

Legal Implications:

This ruling reinforces the principle that trademark protection is not merely about registration but also about establishing a clear, distinguishable identity in the market. In legal disputes, robust evidence of prior use and market presence is indispensable for claiming trademark rights. The court's denial of the injunction in favor of 'ABROS' against 'NEBROS' serves as a reminder of the rigorous standards applied in passing off cases. The decision emphasizes the necessity for clear, convincing evidence and the importance of distinctive trademark characteristics in protecting brand identity.

Case Citation: Abros Sports International Vs Ashish Bajaj: 02.05.2024: CS(COMM) 702/2022:2024:DHC:3551:Delhi High Court: 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.

Written By: Advocate Ajay Amitabh Suman
D/1027/2002 [United & United]
IP Adjutor [Patent and Trademark Attorney]
Mob No.:+91-9990389539

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