Ms.Anuradha Sharma Vs Jiva Ayurvedic

Holistic comparison of composite marks and emphasizing overall impression on average consumer

Introduction:

Delhi High Court has clarified important principles regarding how courts should compare rival trademarks, especially composite marks involving common words. The case involved Ayurvedic brand "Jiva" challenging the use of "Shatam Jeeva" by another player in the wellness and Ayurvedic sector. The High Court overturned a lower court's injunction, holding that there was no deceptive similarity between the marks when viewed as a whole. 

Factual and Procedural Background:

Jiva Ayurvedic Pharmacy and related entities had been using the mark "Jiva" for many years in connection with Ayurvedic products, wellness services, and related businesses. They held several trademark registrations featuring the word "Jiva" often combined with device elements like a lotus. The defendants, connected with the Baidyanath group, adopted "Shatam Jeeva" for a wellness retreat. "Shatam" refers to hundred in Sanskrit, symbolizing longevity to mark a centenary celebration of their family brand. They also held a registration for their mark.

When the Jiva group discovered the defendants' use, they filed a commercial suit seeking injunction on grounds of trademark infringement and passing off. The trial court granted an interim injunction in favor of the plaintiffs, restraining the defendants from using "Shatam Jeeva". The defendants appealed to the Delhi High Court.

Dispute:

The core dispute centered on whether the defendants' mark "Shatam Jeeva" was deceptively similar to the plaintiffs' "Jiva" marks, creating likelihood of confusion among consumers. The plaintiffs argued that "Jiva" was the dominant and essential part of their branding, and the defendants were riding on their goodwill. The defendants countered that their full mark, including "Shatam" and the prominent "By Baidyanath" association, when seen as a whole, was distinctly different in look, sound, and overall impression. They also raised points about honest adoption, prior use claims, and the descriptive nature of "Jeeva".

Reasoning and Analysis of the Judge

The Division Bench stressed that marks must be compared as a whole, not dissected into parts. This anti-dissection rule aligns with how ordinary consumers perceive and remember brands – through overall impression rather than detailed analysis.

The judgment drew heavily from Pernod Ricard India Private Limited & Another vs. Karanveer Singh Chhabbra, , where the Supreme Court explained that even if there is a common element, the test is the general impression on an average consumer with imperfect recollection. The Delhi High Court quoted extensively from this case, including the analogy of mixing milk and water to illustrate how dominant elements function within composite marks. It emphasized that common Sanskrit words like "Jiva" or "Jeeva" cannot be exclusively monopolized unless they have acquired very strong secondary meaning specifically linked to one party.

On infringement, the court applied Section 29(2)(b) of the Trade Marks Act, 1999, and found no visual, phonetic, or conceptual similarity between "Jiva" (with lotus device) and "Shatam Jeeva" (with its own circular device featuring 'S' and herbs, plus "By Baidyanath"). The additional elements sufficiently distinguished the marks.

For passing off, the court referred to the classical trinity of goodwill, misrepresentation, and damage, as discussed in Brihan Karan Sugar Syndicate (P) Ltd. v. Yashwantrao Mohite Krushna Sahakari Sakhar Karkhana, (2024) 2 SCC 577. It noted the lower court had not properly established these elements, particularly goodwill prior to the defendants' use and actual misrepresentation.

The court also cited the landmark case Kaviraj Pandit Durga Dutt Sharma v. Navaratna Pharmaceutical Laboratories, AIR 1965 SC 980  to differentiate between infringement (statutory right) and passing off (common law action based on deceit). This case explains that in passing off, additional features that distinguish the goods can help the defendant, whereas in infringement the focus is more strictly on the registered mark.

The judgment highlighted that the presence of "Shatam" and the Baidyanath association created clear source distinction. It rejected the idea that the defendants were merely copying a dominant part, reiterating that holistic comparison is key. The court found the trial court's reasoning suffered from fallacies, including failure to consider distinguishing features and lack of clear findings on key legal ingredients.

Final Decision of the Court:

The Delhi High Court allowed the appeal, set aside the impugned order granting injunction, and held that the plaintiffs had failed to make out a prima facie case for either infringement or passing off. The defendants were permitted to continue using their "Shatam Jeeva" mark as no likelihood of confusion was established.

Point of Law Settled in the Case:

This judgment reinforces that in trademark disputes involving composite marks with common or descriptive words, courts must undertake a holistic comparison focusing on the overall commercial impression rather than isolating parts. It clarifies that mere presence of a shared word element does not automatically lead to injunction if distinguishing features are present. The decision also underscores the need for trial courts to give clear, reasoned findings on all ingredients of passing off and infringement at the interim stage.

Case Title: Ms.Anuradha Sharma & anr Vs Jiva Ayurvedic Pharmacy Ltd. & Ors.

Date of Order: 21.04.2026

Case Number: FAO (COMM) 334/2025 

Neutral Citation: 2026:DHC:3302-DB

Name of Court: High Court of Delhi

Name of Hon'ble Judges: Hon'ble Mr. Justice C. Hari Shankar and Hon'ble Mr. Justice Om Prakash Shukla 

Disclaimer: Readers are advised not to treat this as substitute for legal advise as it may contain errors in perception, interpretation, and presentation.

Written By: Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi

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Headnote: Delhi High Court sets aside injunction in "Jiva" vs "Shatam Jeeva" trademark dispute, holding no deceptive similarity upon holistic comparison of composite marks and emphasizing overall impression on average consumer rather than isolated word elements.

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Delhi High Court Sets Aside Injunction: No Deceptive Similarity Between "Jiva" and "Shatam Jeeva" Marks

New Delhi: In a notable trademark dispute, the Delhi High Court on 21.04.2026 allowed the appeal and set aside the interim injunction granted by the Commercial Court against the use of the mark "Shatam Jeeva".

Ms.Anuradha Sharma Vs Jiva Ayurvedic:FAO (COMM) 334/2025:2026:DHC:3302-DB: Date of Judgment: 21.04.2026

Court: High Court of Delhi

Coram: Hon'ble Mr. Justice C. Hari Shankar and Hon'ble Mr. Justice Om Prakash Shukla (Justice Om Prakash Shukla, J. authoring the judgment)

Facts and Dispute

The Plaintiffs (Jiva Group) have been using the mark "Jiva" since the 1990s for Ayurvedic products and wellness services and hold multiple registrations. The Defendants, linked to the Baidyanath group, adopted "Shatam Jeeva" (meaning hundred lives/longevity) for a wellness retreat to mark the centenary of their family brand, along with the prominent suffix "By Baidyanath". The Plaintiffs filed a suit alleging infringement and passing off, claiming deceptive similarity. The Commercial Court granted an interim injunction in their favour, which was challenged in appeal.

Reasoning of the Court

Justice Om Prakash Shukla, writing for the Division Bench, held that trademarks must be compared as a whole and not dissected into individual parts. Applying the anti-dissection rule and principles laid down by the Supreme Court in Pernod Ricard India Private Limited & Anr. vs. Karanveer Singh Chhabbra (2025 INSC 981), the Court found no visual, phonetic or conceptual similarity between the rival marks that could cause confusion in the mind of an average consumer with imperfect recollection. The addition of "Shatam" and "By Baidyanath", along with distinct device elements, sufficiently distinguished the marks. The Court also found the trial court's findings on passing off deficient, particularly on the issue of goodwill and misrepresentation.

Decision

The High Court allowed the appeal, set aside the injunction, and held that the Plaintiffs failed to establish a prima facie case of infringement or passing off. The Defendants were held entitled to use their registered mark "Shatam Jeeva".

Disclaimer: Donot treat this as substitute for legal advise as it may contain subjective errors.

Written By: Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi

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Malikie Innovations Ltd & Anr. Vs Xiaomi Corporation

SEP and FRAND: Pro tem orderwithout  detailed examination of the merits

Introduction:

In the evolving landscape of intellectual property law, disputes involving Standard Essential Patents (SEPs) continue to test the balance between innovators who develop critical technologies and companies that implement them in consumer products. A recent judgment from the Delhi High Court in a case involving cellular SEPs has provided important clarity on the use of interim measures known as pro tem security. This order underscores that implementers cannot indefinitely use patented technology without fair compensation while negotiations or court proceedings drag on. The ruling offers practical guidance for both patent holders and technology users in India.

Factual and Procedural Background:

The dispute arose when Malikie Innovations Ltd., which had acquired a significant portfolio of cellular patents originally developed by BlackBerry, approached Xiaomi Corporation and its Indian entities for a license to use patents essential to 4G and 5G mobile technologies. After initial discussions failed to result in an agreement, Malikie filed a commercial suit in the Delhi High Court alleging infringement through the manufacture and sale of mobile devices compliant with these standards.

Alongside the suit, Malikie filed an application seeking a direction for Xiaomi to deposit a pro tem (provisional) security amount. This measure aimed to secure the patent holder’s interests during the long pendency of the case. Xiaomi opposed the application on several grounds, including questions about the ownership of patents, the validity and essentiality of the claimed patents, the fairness of the offered licensing terms, and the overall maintainability of the suit.

Dispute

At the heart of the matter was whether the court could direct an implementer like Xiaomi to deposit security even before a full trial or detailed interim injunction hearing. Malikie argued that Xiaomi’s continued sale of devices using the patented technology without payment amounted to unfair hold-out tactics. Xiaomi, on the other hand, maintained that no such deposit should be ordered without clear proof of infringement and without first determining whether the offered royalty rates were fair, reasonable, and non-discriminatory (FRAND).

Concept of Standard Essential Patents (SEPs):

Standard Essential Patents (SEPs) are patents that cover technologies which have become essential to the implementation of a technical standard adopted by the industry. In the telecommunications sector, examples include the 3G, 4G, and 5G cellular communication standards developed by standard-setting organizations such as the European Telecommunications Standards Institute (ETSI).

A patent is considered “essential” if it is impossible (or commercially unviable) to implement the standard without infringing that patent. For instance, if a mobile phone is to be 4G or 5G compliant, it must necessarily use certain specific technical features covered by the SEPs. In this case, the three Suit Patents (IN 283303, IN 317530, and IN 335982) are asserted by the Plaintiffs (Malikie Innovations Ltd.) as SEPs essential to 3G, 4G, and 5G standards. The Plaintiffs claim that Xiaomi’s 4G and 5G compliant mobile phones and handsets infringe these patents.

SEPs create a unique situation because technical standards are meant to be widely adopted for interoperability. Once a patent is declared essential and incorporated into the standard, the patent holder gains significant market power. This is why standard-setting bodies require patent holders to make commitments regarding licensing.

Concept of FRAND:

FRAND stands for Fair, Reasonable, and Non-Discriminatory. When a company declares its patents as essential to a standard, it typically undertakes to license those SEPs to any willing implementer (manufacturer) on FRAND terms.

Fair and Reasonable refers to royalty rates that reflect the actual technical contribution and value of the patented invention, without exploiting the monopoly created by standardization.

Non-Discriminatory means the patent holder cannot favour some licensees over others who are similarly situated.

The purpose of FRAND is to balance two competing interests: rewarding innovation by allowing patent holders to earn reasonable returns, and ensuring that standards remain accessible so that the technology can be widely implemented without anti-competitive barriers.

Relevance of SEPs and FRAND in This Case:

This Delhi High Court case is a classic SEP infringement and FRAND licensing dispute. The Plaintiffs (Malikie Innovations Ltd., which acquired a large portfolio from BlackBerry) approached Xiaomi in October 2023 seeking a worldwide FRAND license for their cellular SEPs. They allege that Xiaomi has been manufacturing, importing, and selling 4G and 5G compliant devices in India without taking a license, thereby infringing the Suit Patents.

The Plaintiffs filed the suit and an interim application under Section 151 CPC seeking pro tem security (a provisional deposit of royalties) based on their FRAND offers. They argued that Xiaomi was engaging in “hold-out” tactics — delaying negotiations through excessive demands on NDAs, making unreasonably low counteroffers, and continuing to sell infringing products without payment. They relied on precedents such as Huawei v. ZTE, Nokia v. OPPO, Dolby v. Lava, and others to contend that a willing licensee must provide adequate security during negotiations, especially in jurisdictions like India where litigation takes time.

Xiaomi, on the other hand, contested the application by raising several defences typical in SEP cases: non-joinder of BlackBerry (the original patentee), lack of sufficient evidence on validity, essentiality, and infringement, absence of third-party comparable license agreements to prove FRAND rates, and the need for the Court to first establish a prima facie case before ordering any security. Xiaomi also highlighted that they had filed a parallel FRAND rate-setting suit in the Shenzhen Court in China.

The judgment discusses at length the history of negotiations, the parties’ conduct, the strength of the BlackBerry-derived portfolio, market share data of Xiaomi, and the legal principles governing pro tem security in SEP disputes. The filing of the Chinese rate-setting suit was treated as a significant development, potentially amounting to an admission of the need to license the SEPs.

The case revolves around enforcing FRAND obligations in the Indian context: whether Xiaomi has acted as a willing licensee, whether the Plaintiffs have made FRAND offers, and whether interim security is warranted to prevent the SEP holder from suffering irreparable harm during the pendency of the suit, while the implementer continues to benefit from the patented technology.

This dispute highlights the global nature of SEP litigation, where parallel proceedings in India, China, the US, and Europe are common, and courts strive to strike a balance between innovation incentives and fair access to standardized technologies.

Reasoning and Analysis of the Judge:

Court explained that pro tem security is not the same as a full injunction that stops sales. Instead, it acts as a temporary financial safeguard to maintain balance between the parties while the main case proceeds. The judge noted that SEP disputes often involve complex technical and commercial issues that take considerable time to resolve. During this period, the implementer continues to benefit from the technology while the patent owner remains unpaid, creating an unfair advantage.

The Court found prima facie evidence that the patents were essential and that Xiaomi’s devices used them, based on publicly available declarations and product specifications. Court observed that prolonged negotiations, exchange of offers and counteroffers, and Xiaomi’s own filing of a rate-setting case in China indicated recognition of the need for a license. He emphasized that once an implementer knows about the patents and uses the technology, it has an obligation to act as a willing licensee, which includes providing appropriate security.

The judge drew support from several important precedents. He referred to the principles laid down in Huawei Technologies Co. Ltd. v. ZTE Corp. [2015] Bus LR 1261  regarding good faith negotiations in SEP cases. He also relied on Indian rulings such as Nokia Technologies OY v. Guangdong OPPO Mobile Telecommunications Corp. Ltd. & Ors. (Neutral Citation: 2023:DHC:4465-DB), where the Division Bench clarified that pro tem orders have a lower threshold than regular interim injunctions and serve to prevent injustice during the interregnum. Other cases like Dolby International AB & Anr. v. Lava International Limited 2025:DHC:5426, were cited to highlight the court’s equitable powers under Section 151 of the Code of Civil Procedure to pass such orders without a detailed merits examination at this stage.

Court  rejected the argument that full proof of every aspect (including exact FRAND rate) was required before ordering security. He clarified that pro tem relief is meant to preserve the status quo and protect the patent holder’s rights without finally deciding the case. At the same time, he made it clear that the order does not amount to a final finding on infringement or the exact royalty rates.

Final Decision of the Court and Point of Law Settled:

The Court disposed of the application by directing Xiaomi to deposit a substantial security amount with the Registrar General of the Delhi High Court within six weeks, either in cash (as fixed deposit) or through a bank guarantee. It was further clarified that failure to comply could lead to further reliefs, including possible injunction. Importantly, the order emphasized that this was only a provisional measure and would not prejudice the final outcome of the suit.

This judgment settles an important point of law: In SEP infringement cases involving FRAND licensing, Indian courts have the discretion to order pro tem security at an early stage based on a prima facie view of essentiality and use. This mechanism prevents undue delay tactics and ensures that patent owners are not left remediless during lengthy proceedings, while still allowing full adjudication of all issues at the appropriate stage.

Case Title: Malikie Innovations Ltd & Anr. Vs Xiaomi Corporation & Ors.

Date of Order: 30 April 2026

Case Number: CS(COMM) 734/2025 

Neutral Citation: 2026:DHC:3674

Name of Court: High Court of Delhi

Name of Hon’ble Judge: Justice Tejas Karia

Disclaimer: Readers are advised not to treat this as substitute for legal advise as it may contain errors in perception, interpretation, and presentation.

Written By: Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi

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Headnote: Delhi High Court directs deposit of pro tem security in SEP FRAND dispute emphasizing lower threshold for provisional relief to balance interests of patent holders and implementers during pendency of litigation.

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Delhi High Court Directs Xiaomi to Deposit ₹272 Crores as Pro Tem Security in SEP Infringement Suit by Malikie Innovations

Malikie Innovations Ltd Vs Xiaomi Corporation:30.04.2026:CS(COMM) 734/2025:2026:DHC:3674: Hon’ble Mr. Justice Tejas Karia

Facts & Dispute:

Malikie Innovations Ltd. (which acquired a large cellular SEP portfolio from BlackBerry) filed a suit alleging infringement of three Indian SEPs essential to 4G and 5G standards by Xiaomi’s mobile devices. The Plaintiffs claimed that despite approaching Xiaomi in 2023 and making FRAND offers, the Defendants engaged in hold-out tactics, continued unlicensed sales, and later initiated FRAND rate-setting proceedings in China. 

Xiaomi contested the suit’s maintainability (non-joinder of BlackBerry), disputed essentiality/infringement/FRAND compliance, and argued that pro tem security could not be ordered without a full prima facie adjudication.

Reasoning of the Court:

Court  held that in SEP cases, pro tem security is a distinct equitable relief with a lower threshold than Order XXXIX injunctions. It serves to balance equities during prolonged litigation and prevent implementers from gaining unfair advantage through continued use of SEPs without compensation. The Court found prima facie infringement based on claim charts, ETSI declarations, and Xiaomi’s self-declared 4G/5G compliance. It viewed Xiaomi’s negotiations, counteroffers, and the Chinese rate-setting suit as indicative of recognition of the need to license. The Court relied on precedents such as Nokia Technologies OY v. OPPO, Dolby v. Lava, and Huawei v. ZTE, emphasizing that implementers must furnish security commensurate with the SEP holder’s offer during negotiations.

Decision:

The Court allowed the application in part and directed Xiaomi to deposit ₹272 crores (approx. $28.7 million, calculated as 19.12% of the mean of the parties’ second lump-sum offers, corresponding to Indian market share) with the Registrar General within 6 weeks, either as cash in an interest-bearing FDR or as an unconditional bank guarantee. Failure to comply would entitle the Plaintiffs to seek interim injunction. The order clarifies that it does not amount to a final finding on infringement, validity, or FRAND rates.

Disclaimer: Do not treat this as substitute for legal advice as it may contain subjective errors.

Written By: Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi

#DelhiHighCourt, #SEPDispute, #FRAND, #ProTemSecurity, #StandardEssentialPatents, #PatentInfringement, #XiaomiLitigation, #MalikieInnovations, #BlackBerrySEPs, #IPLitigation, #5GPatents, #IndiaIPLaw, #HighCourtJudgment, #TejasKaria, #PatentLaw, #IPUpdate, #AdvocateAjayAmitabhSuman, #IPAdjutor

21,40,42,61,79,80

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Medecine Sans Frontiers International Vs Dharma Production Pvt.Ltd.

Introduction:

In an important decision that touches upon the intersection of intellectual property rights, freedom of expression in cinema, and the reputation of global humanitarian brands, the Delhi High Court has delivered a nuanced ruling in a case involving the world-renowned medical aid organisation Médecins Sans Frontières (Doctors Without Borders). The Court declined to completely restrain the exhibition of the film Jigra but directed the producers to add a specific acknowledgement clarifying that the use of the organisation’s name was not intended to harm its reputation. This judgment offers valuable insights into how courts handle claims of trademark infringement and brand disparagement when real-world marks appear in fictional cinematic works.

Factual and Procedural Background:

Médecins Sans Frontières, an international humanitarian organisation known for providing medical assistance in crisis zones, has built immense goodwill over decades. It operates under the name “Doctors Without Borders” and holds several trademark registrations in India, including its recognition as a well-known mark. The organisation has been active in India since 1999, offering help in areas such as HIV treatment, tuberculosis, malnutrition, and disaster relief. Its work has earned global acclaim, including the Nobel Peace Prize.

The dispute arose when the film Jigra, produced by Dharma Productions and starring Alia Bhatt, was released in October 2024. In certain scenes, the lead characters disguise themselves as representatives of Doctors Without Borders to execute a fictional prison break and cross international borders illegally. The organisation viewed this portrayal as unauthorised use of its mark that could link its humanitarian image with criminal activity, potentially harming its reputation and donor confidence. After sending a legal notice that was rejected, the Plaintiff filed a suit seeking an interim injunction to stop further exhibition of those scenes.

Dispute:

The central dispute was whether the use of the Plaintiff’s well-known mark in the film amounted to trademark infringement by taking unfair advantage of its reputation or causing detriment to its distinctive character. The Plaintiff argued that the depiction created a negative association, suggesting that its credentials could be misused for illegal purposes. The Defendants, including the production house and the lead actress, contended that the film was a fictional work, the reference was minor and contextual, and it did not disparage the organisation or cause any real harm. They emphasised artistic freedom and the presence of a disclaimer in the film.

Reasoning and Analysis of the Court:

The Court acknowledged the strong reputation of the Plaintiff’s mark and its well-known status in India. It also accepted that the film, being a commercial venture, involved use “in the course of trade.” However, the Judge stressed that for infringement under the relevant provision of the Trade Marks Act, the Plaintiff needed to show that the use was without due cause and caused unfair advantage or detriment to the mark.

The Court discussed several important principles from earlier cases. It referred to ITC Ltd. v. Philip Morris Products SA to explain that unfair advantage cannot be presumed and must be clearly established. Similarly, reliance was placed on Bloomberg Finance LP v. Prafull Saklecha to highlight the need to show actual or likely change in consumer behaviour or dilution of the mark’s distinctive character. The Judge also considered Tata Sons Limited v. Greenpeace International, noting that contextual or denominative use in artistic works does not automatically amount to infringement or disparagement, especially when there is no direct attack on the brand’s reputation.

On the facts, the Court found that while the use was deliberate and not merely incidental, the Plaintiff had not produced sufficient evidence at this stage to prove actual unfair advantage or tangible harm such as loss of donations. The film had received certification from the Central Board of Film Certification, which added weight to the Defendants’ position. At the same time, the Judge recognised the potential for some impact on the mark’s reputation due to its association with illegal border crossing in the storyline.

Final Decision of the Court and Point of Law Settled:

The Court ultimately did not grant a full injunction stopping the film’s exhibition. Instead, it directed the Defendants to display a clear acknowledgement at the beginning of the film stating that the use of the Plaintiff’s mark was not intended to cause any harm or detriment to its distinctive character or reputation. This direction was to be implemented within four weeks. The application was disposed of with these observations.

This judgment settles important points in simple terms: courts will protect famous humanitarian and charitable brands from misuse that could tarnish their image, but they will also respect artistic freedom in cinema. Minor or contextual references in fictional works may not always justify a complete ban, especially when no clear evidence of actual damage is shown. Instead, suitable disclaimers or acknowledgements can provide balanced relief. The ruling underscores that reputation-based claims require strong prima facie evidence of harm or unfair riding on goodwill before drastic orders like injunctions are passed.

Case Title:Medecine Sans Frontiers International Vs Dharma Production Pvt.Ltd. and Ors

Date of Order: 30.04.2026

Case Number: CS(COMM) 1134/2024

Neutral Citation: 2026:DHC:3670

Name of Court: High Court of Delhi

Name of Hon'ble Judge: Justice Tejas Karia

Disclaimer: Readers are advised not to treat this as substitute for legal advise as it may contain errors in perception, interpretation, and presentation

Written By: Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi

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Introduction

In an important decision concerning the intersection of trademark law, artistic expression, and reputational concerns, the Delhi High Court addressed whether a popular Bollywood film could use the name and mark of a globally renowned humanitarian organisation without permission. The ruling provides clarity on when such use amounts to infringement or disparagement and how courts can protect well-known marks while respecting creative freedom in cinema.

Factual and Procedural Background

Médecins Sans Frontières International (MSF), popularly known as Doctors Without Borders, is an international humanitarian medical aid organisation that provides emergency medical assistance in conflict zones, disasters, and areas with limited healthcare access. The organisation has operated in India for many years and enjoys strong reputation and goodwill, supported by prestigious awards including the Nobel Peace Prize. Its marks are registered in India and have been declared well-known.

The defendants, including production house Dharma Productions and actress Alia Bhatt, released the film Jigra in October 2024. In certain scenes, the film’s characters disguise themselves as representatives of MSF (referred to as “Doctors Without Borders”) to execute a fictional prison break and cross international borders. MSF objected to this portrayal, claiming it tarnished its reputation by associating the organisation with illegal activities. After the defendants refused to remove the scenes, MSF filed a suit and sought an interim injunction to restrain further exhibition of those portions.

Dispute

The core dispute revolved around whether the defendants’ use of MSF’s well-known mark in the film constituted trademark infringement and disparagement. MSF argued that the depiction misused its reputation for border access to depict criminal acts, causing harm to its distinctive character and goodwill, especially among donors and the public. The defendants contended that the use was minimal, fictional, contextual to the story, protected by artistic freedom, and did not cause any actual damage or confusion. They maintained it was fair referential use in a creative work and not intended to ride on or harm the mark.

Reasoning and Analysis of the Judge

Justice Tejas Karia examined the matter under Section 29(4) of the Trade Marks Act, which protects well-known marks from uses that take unfair advantage or are detrimental to their distinctive character or repute. The judge acknowledged the plaintiff’s strong reputation and the commercial nature of the film but noted that the use was limited and served a narrative purpose in a fictional story.

The Court discussed relevant precedents. It referred to ITC Ltd. v. Philip Morris Products SA (2010 SCC OnLine Del 27) on the need to prove unfair advantage as a matter of fact rather than presumption. The judge also considered Bloomberg Finance LP v. Prafull Saklecha (2013 SCC OnLine Del 4159) and principles from foreign cases on artistic works, emphasizing that mere referential or contextual use in fiction does not automatically amount to infringement or disparagement.

On disparagement, the Court applied the test of how a reasonable viewer would perceive the content, finding no direct attack on MSF’s integrity. While the portrayal linked the mark to illegal border crossing in fiction, the judge held that this did not sufficiently prove dilution or tarnishment at the interim stage, especially given the Central Board of Film Certification’s approval. The Court stressed balancing intellectual property rights with freedom of expression under Article 19(1)(a) of the Constitution, subject to reasonable restrictions.

Final Decision of the Court and Point of Law Settled

The Court declined to grant a full injunction restraining the exhibition of the film. However, recognising potential detriment to the mark’s reputation, it directed the defendants to display a clear acknowledgment at the beginning of the film stating that the use of MSF’s mark is fictional and not intended to harm or associate with the organisation’s real activities. This was to be done within four weeks.

This judgment settles that in cases involving use of well-known marks in creative works like films, courts will not readily restrain artistic expression unless there is clear evidence of unfair advantage, actual detriment, or misleading association. It underscores that contextual, limited, and fictional use may be permissible with appropriate disclaimers to protect reputation, thereby striking a practical balance between trademark protection and cinematic freedom.

Case Title: Medecins Sans Frontieres International Vs Dharma Productions Private Limited:30.04.2026:CS(COMM) 1134/2024:2026:DHC:3670: Justice Tejas Karia

Disclaimer: Readers are advised not to treat this as substitute for legal advise as it may contain errors in perception, interpretation, and presentation.

Written By: Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi

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Headnote: Delhi High Court declines full injunction on film using humanitarian organisation’s well-known mark but directs display of disclaimer to prevent reputational harm, balancing trademark protection with creative expression in cinematographic works.

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Delhi High Court Refuses Injunction but Directs Disclaimer in Film’s Use of ‘Doctors Without Borders’ Mark

Medecins Sans Frontieres International Vs Dharma Productions Private Limited:.30.04.2026:CS(COMM) 1134/2024:2026:DHC:3670: Hon’ble Mr. Justice Tejas Karia

Facts & Dispute:

Médecins Sans Frontières (MSF), internationally known as Doctors Without Borders, is a renowned humanitarian medical aid organisation with registered and well-known trademarks in India. The organisation objected to the use of its mark in the Bollywood film Jigra (produced by Dharma Productions and starring Alia Bhatt), where characters disguise themselves as MSF representatives to execute a fictional prison break and cross international borders. MSF claimed the portrayal tarnished its reputation by associating it with illegal activities and sought an interim injunction to restrain exhibition of the relevant scenes.

Reasoning of the Court:

The Court  held that while MSF has strong reputation and the film’s use was commercial in nature, the reference was limited, contextual, and part of a fictional narrative. The Court found no sufficient prima facie evidence of unfair advantage or actual detriment/dilution at the interim stage. It emphasised artistic freedom in cinema and noted the film’s certification by the Central Board of Film Certification. Precedents on trademark dilution and disparagement in creative works were considered, with the Court stressing that mere referential use in fiction does not automatically amount to infringement.

Decision:

The Court declined to grant a full injunction restraining the film’s exhibition. However, to balance equities and protect MSF’s reputation, it directed the defendants to display a suitable acknowledgment/disclaimer at the beginning of the film clarifying that the use of the mark is fictional and not intended to harm or associate with the plaintiff’s real activities. The direction was to be complied with within four weeks.

Disclaimer: Donot treat this as substitute for legal advise as it may contain subjective errors.

Written By: Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi

#DelhiHighCourt, #TrademarkInfringement, #WellKnownMark, #DoctorsWithoutBorders, #FilmTrademarkDispute, #ArtisticFreedom, #MSFTrademark, #JigraMovieCase, #IPLitigation, #BollywoodIP, #TrademarkDilution, #IPUpdate, #AdvocateAjayAmitabhSuman, #IPAdjutor

33,37,44-48,53

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Mold Tek Packaging Limited Vs Pronton Plast Pack Pvt.Ltd.

Introduction:

In a notable ruling that underscores the protection of innovation in the packaging industry, the Delhi High Court has reinforced the rights of a patent holder by restraining a competitor from selling products that allegedly copy key patented features. This case highlights how Indian courts balance the need to protect genuine inventions while carefully examining claims of patent infringement and validity at the interim stage. The decision serves as an important reference for businesses in manufacturing and intellectual property law, showing that courts will step in to prevent unfair competition when a strong case of copying is made out.

Factual and Procedural Background:

Mold-Tek Packaging Limited, a well-established public listed company known for its advanced plastic packaging products, developed unique tamper-evident and leak-proof container systems. The company holds two Indian patents for these innovations: one covering tamper-evident leak-proof pail closure systems and another for a tamper-proof lid with a spout for containers, along with the manufacturing process. These features help ensure product safety, prevent tampering, and maintain leak-proof quality, which are especially useful for storing and transporting items like paints, food, and lubricants.

The company discovered that Pronton Plast Pack Private Limited was manufacturing and selling similar plastic containers, pails, and lids that appeared to copy the patented designs and features. After initial proceedings in a lower commercial court, where an interim order was granted and later vacated, the matter reached the Delhi High Court. The plaintiff sought an urgent injunction to stop the defendant from continuing these activities during the ongoing lawsuit. The defendant opposed the request, challenged the patents' validity, and argued that their products did not infringe the patents.

Dispute:

The core dispute revolved around whether the defendant's products infringed the plaintiff's two patents and whether those patents were valid. The plaintiff provided detailed comparisons showing that the defendant's containers and lids incorporated the same key elements, such as specific tear bands for tamper evidence, locking mechanisms, and leak-proof spout assemblies. The defendant countered by claiming their products used different or generic features, raised prior art to question the patents' novelty, and alleged that the plaintiff had not properly disclosed earlier related patents. Both sides presented expert views, but the court focused on comparing the patented claims with the actual features of the accused products.

Reasoning and Analysis of the Judge:

The court emphasized that for granting an injunction, the plaintiff needs to show a prima facie case of infringement, that the balance of convenience favors the plaintiff, and that irreparable harm would occur without the order.

On the question of infringement, the court found that the defendant's products closely matched the essential features described in the plaintiff's patent claims. Even where minor differences existed, the judge applied the principle that small variations or workshop improvements do not avoid infringement if the core inventive concept is copied. The reasoning drew from established judicial views that infringement is determined by comparing the patent claims with the defendant's product, not merely by comparing physical products side by side.

The Court addressed the validity challenge by noting that the patents had been granted after examination and that the prior art cited by the defendant did not fully anticipate or render the inventions obvious. court emphasized that infringement of a patent is ascertained by

comparing the patent claims with the impugned product andnot by a product-to-product comparison. He referred to established principles from cases like F. Hoffmann-La Roche Ltd. v. Cipla Ltd. (2015 SCC OnLine Del 14738), where the court stressed the importance of protecting patented inventions during litigation to prevent irreparable harm to the patent holder.

The judge also discussed the Raj Parkash v. Mangat Ram Chowdhry (1977 SCC OnLine Del 33) precedent on the doctrine of pith and substance, clarifying that minor variations or workshop improvements do not allow a party to escape infringement if the essential features are copied. Regarding expert evidence and product comparisons, the Court preferred claim-based analysis over mere visual or ornamental comparisons. On the issue of prior patents and alleged suppression, the judge found that the differences were material and did not undermine the current patents’ validity at this stage.

The ruling aligns with earlier Division Bench observations in related proceedings and reinforces that a mere challenge to validity is not enough to deny interim relief unless it is a strong, credible one.

Final Decision of the Court and Point of Law Settled:

The Court disposed of the interim applications by maintaining the injunction in favor of Mold-Tek, restraining Pronton from manufacturing, selling, or dealing in the products found to infringe the patents during the pendency of the suit. The defendant’s application to vacate the injunction was rejected. The order makes clear that it is based on a prima facie view and does not finally decide the issues of validity or infringement, which will be examined at the trial.

This judgment settles an important practical point: In patent infringement suits involving mechanical or packaging innovations, courts will grant interim protection where the patent holder demonstrates a strong prima facie case of copying essential features, even if the defendant raises validity challenges, provided those challenges are not overwhelmingly credible at the early stage.This case reasserts that minor variations do not avoid Patent infringement under the doctrine of pith and substance. It strengthens the enforceability of granted patents and discourages hold-out tactics by alleged infringers.

Case Title: Mold-Tek Packaging Limited Vs Pronton Plast Pack Pvt. Ltd.

Date of Order: 30 April 2026

Case Number: CS(COMM) 944/2024

Neutral Citation: 2026:DHC:3672

Name of Court: High Court of Delhi

Name of Hon’ble Judge: Justice Tejas Karia

Disclaimer: Readers are advised not to treat this as substitute for legal advise as it may contain errors in perception, interpretation, and presentation.

Written By: Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi

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Headnote: Delhi High Court maintains interim injunction restraining infringement of tamper-evident leak-proof container patents, holding prima facie case of copying established and validity challenges not sufficient to deny relief at interim stage.

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Delhi High Court Grants Interim Injunction in Patent Infringement Suit Involving Tamper-Evident Packaging Technologies

Mold-Tek Packaging Limited Vs Pronton Plast Pack Pvt. Ltd.30.04.2026: CS(COMM) 944/2024:2026:DHC:3672:Hon’ble Mr. Justice Tejas Karia

Facts & Dispute:

Mold-Tek Packaging Limited, a leading manufacturer of plastic packaging solutions, holds two Indian patents related to innovative tamper-evident and leak-proof container closure systems (Suit Patent I: IN 401417 and Suit Patent II: IN 298724). The company alleged that Pronton Plast Pack Pvt. Ltd. was manufacturing and selling infringing plastic pails and lids that copied the key technical features of these patented inventions. The matter reached the Delhi High Court after proceedings in the commercial court, including an earlier interim order, vacation, and subsequent appeals.

The core dispute centered on whether the defendant’s products infringed the plaintiff’s patents and whether an interim injunction should be granted or vacated, alongside challenges to the validity of the patents raised by the defendant.

Reasoning of the Court:

The Court  undertook a detailed prima facie analysis of the claims of both patents and compared them with the defendant’s products through claim mapping and visual evidence. The Court found strong prima facie evidence of infringement, particularly noting that the defendant’s products incorporated the essential tamper-evident tear band mechanism, secondary locking features, and leak-proof spout assembly covered by the patents.

The judge rejected the defendant’s validity challenges and prior art defenses, observing that the plaintiff’s patents demonstrated sufficient novelty and inventive step over existing technologies. Arguments regarding suppression of prior patents or designs were not found to disentitle the plaintiff from relief. The Court emphasized the importance of protecting patented innovations in competitive markets while noting that minor variations do not avoid infringement under the doctrine of pith and substance.

Decision:

The Court disposed of the interim applications by granting/continuing the injunction in favor of the plaintiff, restraining the defendant from manufacturing, selling, or dealing in the infringing products during the pendency of the suit. The defendant’s application for vacation of injunction was dismissed. The order clarifies it is based on a prima facie view and does not finally adjudicate validity or infringement.

Disclaimer: Donot treat this as substitute for legal advise as it may contain subjective errors.

Written By: Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi

#DelhiHighCourt, #PatentInfringement, #InterimInjunction, #TamperEvidentPackaging, #IPLitigation, #MoldTekPackaging, #PlasticPackagingPatent, #SuitPatent, #DesignsAct, #IndiaIPLaw, #HighCourtJudgment, #TejasKaria, #IPUpdate, #AdvocateAjayAmitabhSuman, #IPAdjutor

36,39-41,56,

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Blackberry Limited Vs. Controller of Patents and Designs

Blackberry Limited Vs. Controller of Patents and Designs:30.04.2026:C.A.(COMM.IPD-PAT) 14/2022:2026:DHC:3668: Hon’ble Mr. Justice Tejas Karia

Brief Facts and Background: 

The present appeal was filed under Section 117A of the Patents Act, 1970 by Blackberry Limited challenging the refusal orders dated 11.10.2019 and 05.03.2020 passed by the Assistant Controller of Patents and Designs under Section 15 of the Act. The refusal pertained to Patent Application No. 1976/DEL/2008 titled “Colour Differentiating a Portion of a Text Message Shown in a Listing on a Handheld Communication Device.” The invention aimed at improving user interface functionality in handheld devices by enabling colour differentiation of message recipients based on address characteristics such as domain names, thereby reducing the risk of sending messages to unintended recipients.

Issues:

Whether the subject invention satisfies the requirement of inventive step under Section 2(1)(j) of the Patents Act, 1970.Whether the invention is excluded from patentability under Section 3(k) as a “computer program per se” or algorithm.

Appellant’s Arguments:The Appellant contended that the invention provided a technical effect and technical contribution, improving user-device interaction and reducing errors in message transmission. It was argued that the invention was not merely a computer program but addressed a technical problem in constrained device environments. 

Respondent’s Arguments:

The Respondent argued that the invention was obvious in light of prior arts (D1–D3) and that the claimed features were purely software-based, relating to data management and user convenience rather than technical advancement. 

Court’s Analysis and Findings:

The Court upheld the findings of the Controller and held:  The invention lacked inventive step, as prior arts D1, D2, and D3 collectively disclosed similar mechanisms for categorisation and visual differentiation of messages, rendering the claimed invention obvious to a person skilled in the art. The subject matter fell within the exclusion under Section 3(k), as it primarily involved algorithmic colour-coding based on message characteristics, without demonstrating any technical effect on hardware or system functionality. 

The Court emphasized that mere improvement in user convenience or interface does not amount to a technical contribution, unless it enhances the functioning of the system itself. The alleged problem (avoiding incorrect recipients) was held to be non-technical and user-dependent, and therefore not a “technical problem” within the meaning of patent law. 

Decision:

The appeal was dismissed, and the impugned orders refusing the patent application were upheld. No order as to costs was passed. �

"Disclaimer: Donot treat this as substitute for legal advise as it may contain subjective errors.

Written By: Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi"

#BlackberryCase #DelhiHighCourtJudgment #PatentLawIndia #Section3k #ComputerRelatedInventions #CRIIndia #PatentRefusal #InventiveStep #PatentLitigationIndia #IPLawIndia #SoftwarePatentIndia #TechnicalEffect #PatentAppeal #IndianPatentAct #LegalCaseNote #IPRJudgment #DelhiHC2026 #PatentAttorneyIndia #PatentCaseSummary #Section117A #AdvocateAjayAmitabhSuman #IPAdjutor"

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Technical Effect Test in Indian Patent Law

Introduction:

The decision rendered by the High Court of Delhi in the present case is an important addition to the growing body of Indian jurisprudence concerning Computer Related Inventions (CRIs). The case reflects the continuing judicial effort to strike a balance between encouraging innovation in software-driven technologies and preventing monopolisation of abstract ideas or algorithms. The Court was called upon to examine whether a seemingly user-friendly technological improvement, colour differentiation of message recipients, could qualify as a patentable invention under Indian law.

The judgment reiterates a consistent judicial approach that patent protection is not available for every form of technological convenience, especially where the invention does not demonstrate a genuine technical advancement. It reinforces the statutory exclusion under Section 3(k) of the Patents Act, which denies patentability to computer programs per se unless accompanied by a demonstrable technical effect.

Factual and Procedural Background:

The Appellant, Blackberry Limited, filed a patent application relating to a method of colour differentiation of recipients in a text message on handheld communication devices. The invention was aimed at enabling users to visually distinguish recipients based on characteristics such as domain or organisational identity, thereby reducing the risk of sending messages to unintended persons.The application was examined by the Patent Office, which raised objections primarily on the grounds of lack of novelty, lack of inventive step, and non-patentability under Section 3(k). The Controller ultimately refused the application. A review petition filed by the Appellant was also dismissed.Aggrieved by these decisions, the Appellant approached the High Court under Section 117A of the Patents Act, challenging both the refusal and the dismissal of the review petition. 

Dispute: The central dispute before the Court revolved around whether the invention in question constituted a patentable invention under Indian law. The Appellant asserted that the invention provided a technical solution to a technical problem by improving user interaction with handheld devices. It was argued that the invention resulted in a technical effect by enhancing efficiency and preventing errors. On the other hand, the Respondent maintained that the invention was merely an algorithmic implementation for managing message recipients and did not involve any technical advancement. It was further contended that similar mechanisms already existed in prior art and that the invention was obvious to a person skilled in the field.

Reasoning and Analysis of the Judge: The court undertook a detailed examination of both the technical aspects of the invention and the applicable legal principles. The Court carefully analysed prior art documents and concluded that the essential idea of categorising or visually distinguishing messages or recipients was already known.

In evaluating the issue of inventive step, the Court observed that although the Appellant’s invention applied colour differentiation at a different stage, the underlying concept remained substantially similar to prior disclosures. The Court held that merely modifying an existing idea in a predictable manner does not satisfy the requirement of inventiveness.

A significant portion of the judgment was devoted to interpreting Section 3(k) of the Patents Act. The Court emphasised that for a computer-related invention to be patentable, it must demonstrate a clear technical effect or contribution that goes beyond the execution of an algorithm on a general-purpose device. The Court found that the present invention did not improve the functioning of the hardware or the system itself, but merely enhanced user convenience.

The Court also addressed the argument that the invention solved a practical problem. It clarified that not every practical problem qualifies as a technical problem. In the present case, the issue of sending messages to unintended recipients was considered a human or behavioural issue rather than a technical one. Therefore, the solution provided by the invention could not be regarded as a technical advancement.

The Court relied on established precedents to support its reasoning. Reference was made to Ferid Allani v. Union of India (2019 SCC OnLine Del 11867), where it was held that computer-related inventions may be patentable if they demonstrate a technical effect. However, the Court distinguished the present case by noting that such technical effect was absent here.

The judgment also considered F. Hoffmann-La Roche Ltd. v. Cipla Ltd., Neutral Citation: 2015:DHC:9674-DB, particularly on the principle that hindsight analysis must be avoided while assessing inventive step. Nevertheless, the Court found that even without hindsight, the invention was obvious in light of existing knowledge.

Further reliance was placed on Microsoft Technology Licensing LLC v. Assistant Controller of Patents, 2024 SCC OnLine Mad 2785, where the importance of demonstrating a technical effect impacting system functionality was emphasised. Applying this principle, the Court held that the present invention did not meet the threshold required to overcome the exclusion under Section 3(k).

Final Decision of the Court:

The High Court dismissed the appeal and upheld the orders of the Controller. It concluded that the invention lacked inventive step and fell within the exclusion of non-patentable subject matter under Section 3(k) of the Patents Act. The Court found no reason to interfere with the findings of the Patent Office.

Point of Law Settled:

The case firmly establishes that an invention relating to software or computer implementation must demonstrate a tangible technical effect that improves system functionality or solves a technical problem. Improvements limited to user convenience or presentation of information do not qualify as technical contributions. The judgment also clarifies that human errors or behavioural issues cannot be treated as technical problems for the purpose of patentability.

Case Title: Blackberry Limited Vs. Controller of Patents and Designs

Date of Order: 30 April 2026

Case Number: C.A.(COMM.IPD-PAT) 14/2022

Neutral Citation: Not specified in the judgment

Court: 2026:DHC:3668

Judge: Hon’ble Mr. Justice Tejas Karia

Disclaimer: Readers are advised not to treat this as substitute for legal advise as it may contain errors in perception, interpretation, and presentation.

Written By: Advocate Ajay Amitabh Suman, IP Adjutor [Patent and Trademark Attorney], High Court of Delhi

Patent law India, Section 3k patents, computer related inventions India, Blackberry patent case, Delhi High Court patent judgment, software patent India, inventive step patent law, CRI guidelines India, patent refusal India, IP law case analysis, technical effect patent, patent litigation India, patent eligibility India, legal case note patent, Indian patents act analysis, AdvocateAjayAmitabhSuman, IPAdjutor

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Headnote

The Delhi High Court in Blackberry Limited v. Controller of Patents and Designs reaffirmed that for computer-related inventions to be patentable in India, they must demonstrate a clear technical effect and contribution beyond mere algorithmic implementation or user interface enhancement. The Court held that improvements relating to user convenience or prevention of human error do not constitute technical advancement and fall within the exclusion under Section 3(k) of the Patents Act, thereby rendering such inventions non-patentable.

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"Division Bench Obiter: Guiding Light or Mere Suggestion for Single Judges?"

Introduction: The Role of Obiter Dictum in Indian Judicial Hierarchy:

The Indian legal system, like other common law jurisdictions, operates on the doctrine of precedent to ensure consistency and predictability in judicial decisions. At the core of this doctrine lies the distinction between ratio decidendi, the legal principle that forms the basis of a decision, and obiter dictum, statements made by judges that are incidental to the main issue and not essential to the outcome of the case. While the former holds the force of binding precedent, the latter carries no binding authority but may be persuasive in nature. 

In practice, however, determining whether a particular statement made by a higher bench is ratio or obiter can be contentious. This dilemma becomes especially significant when Single Judges are tasked with interpreting statements made by Division Benches. The Delhi High Court’s recent decision in Balar Marketing Pvt. Ltd. v. Lakha Ram Sharma, 2025:DHC:2322, by Hon’ble Single Judge, Delhi High Court, shed light on the question of whether a Single Judge is bound by an obiter dictum of a Division Bench of the same High Court. The case revolved around the application of Section 124 of the Trade Marks Act, 1999 in trademark infringement and passing off proceedings.

 

Factual Background and Procedural History:

The dispute between Balar Marketing Pvt. Ltd. (the petitioner) and Lakha Ram Sharma, the proprietor of Kundan Cable India (the respondent), centered on the use of the trademark "KUNDAN" and its variants, including "KUNDAN CAB" and "KUNDAN CABLE." Both parties operated in the electrical goods industry, and each claimed the exclusive right to the trademark based on prior adoption.The petitioner asserted that its predecessor had adopted the mark in 1975 and had continuously used it. The respondent, on the other hand, claimed to have adopted and used the mark earlier, leading to a series of protracted legal disputes. Multiple suits were filed between 1994 and 2006, including passing off and infringement actions. These suits were consolidated, and the case went through various procedural developments. 

In January 2025, the respondent sought a stay on all the suits under Section 124 of the Trade Marks Act, citing the pendency of rectification proceedings before the Madras High Court. The Trial Court granted a stay on all suits (except TM No. 931/2016) on January 18, 2025, relying on the Division Bench decision in Amrish Aggarwal Trading as Mahalaxmi Product v. Venus Home Appliances, 2024 SCC OnLine Del 3652. Aggrieved by this order, the petitioner filed a writ petition under Article 227 of the Constitution of India, seeking judicial review. The decision of the Delhi High Court in Balar Marketing is significant for its clarity in defining the limits of obiter dictum and its binding effect.

 Core Legal Issue:

The principal legal issue in this case was whether the Trial Court was justified in staying the passing off suits under Section 124 of the Trade Marks Act based on the observations made in Amrish Aggarwal DB? The subsidiary question was whether the remarks made by the Division Bench regarding the stay of passing off suits were obiter dictum or binding precedent?

Parties Contention:

The petitioner contended that the reference to passing off suits in paragraph 44 of Amrish Aggarwal DB  was a mere obiter dictum. The Division Bench in that case was primarily addressing procedural issues concerning the stay of infringement suits during the pendency of rectification proceedings, not passing off actions. The petitioner relied heavily on the judgment in Puma Stationer Pvt. Ltd. v. Hindustan Pencils Ltd., 2010 (43) PTC 479 (Del.) (DB), where the Division Bench had explicitly ruled that passing off suits are not subject to stay under Section 124. This principle, according to the petitioner, should not be disturbed by an incidental remark in Amrish Aggarwal.

The respondent, on the other hand, argued that even obiter dicta from a Division Bench of the High Court must be followed by a Single Judge to ensure judicial consistency. To support this view, the respondent cited cases such as Naseemunisa Begum v. Shaikh Abdul Rehman, 2002 (2) Mah L.J. 115 and Crocs Inc. USA v. Aqualite India Ltd., 2019 SCC OnLine Del 11957, in which it was held that even remarks made in passing by a Division Bench could be binding, especially when they did not contradict established law.

Contextual Interpretation of Amrish Aggarwal DB Case:

The Hon’ble Single first examined the context of the Amrish Aggarwal case. The Division Bench in that case was primarily concerned with procedural issues arising out of the abolition of the Intellectual Property Appellate Board (IPAB) and whether rectification proceedings triggered a stay under Section 124 of the Trade Marks Act. The primary issue in Amrish Aggarwal DB  was not related to passing off suits, but rather the procedural question of whether infringement actions could be stayed during the pendency of rectification proceedings. The Division Bench’s reference to passing off suits was made incidentally in paragraph 44, without any extensive legal reasoning or argumentation. Therefore, Justice Bansal concluded that the remark was not part of the ratio decidendi and should be treated as obiter dictum.

No Express Overruling of Binding Precedent (Puma Stationer):

The Hon’ble Single Judge, Delhi High Court noted that the Division Bench in Amrish Aggarwal had relied on Puma Stationer Pvt. Ltd. v. Hindustan Pencils Ltd., 2010 (43) PTC 479 (Del.) (DB), which had clearly held that passing off actions are not subject to stay under Section 124. The Division Bench in Amrish Aggarwal did not overrule or even address this binding precedent, further supporting the conclusion that the reference to passing off suits was incidental and lacked any binding authority.

Application of Supreme Court Precedents on Obiter Dictum:

The court drew upon established Supreme Court principles that clarify the nature and scope of obiter dictum. In Mohinder Singh Gill v. Chief Election Commissioner, (1978) 1 SCC 405, the Supreme Court held that only the ratio decidendi of a judgment is binding, and obiter dictum, or incidental remarks, are not enforceable in subsequent cases. Similarly, in State of Orissa v. Sudhansu Sekhar Misra, AIR 1968 SC 647, the Supreme Court emphasized that casual observations or statements made without a thorough examination of the issue do not form part of the binding law.

The Hon’ble Single Judge also referred to the case of Gudri v. Ram Kishun, AIR 1984 All 100, where it was held that even stray or inadvertent remarks made by a Full Bench, if inconsistent with settled law, do not bind lower courts. This case further reinforced the position that obiter dictum, even when expressed by larger benches, cannot override established legal principles.

 Lack of Detailed Legal Reasoning in Amrish Aggarwal on Passing Off

The Division Bench in Amrish Aggarwal made no reference to key statutory provisions such as Section 27(2) of the Trade Marks Act, which expressly preserves common law rights in passing off actions, independent of the statutory registration status. Moreover, the Division Bench did not cite or discuss previous case law that dealt directly with the application of Section 124 to passing off claims. The lack of legal reasoning and analysis led Justice Bansal to conclude that the reference to passing off suits was inadvertent and non-binding.

 Distinction from Other Cases Cited by the Respondent:

Justice Bansal distinguished the cases relied upon by the respondent, such as Naseemunisa Begum v. Shaikh Abdul Rehman and Crocs Inc. USA v. Aqualite India Ltd., where the observations made by the higher benches were integral to the judicial reasoning and central to the legal issues at hand. In contrast, the reference to passing off in Amrish Aggarwal was not framed as an issue for determination and did not involve a detailed examination of the law.

 Decision and Legal Principle Clarified:

In light of the above analysis, the Court held that the Trial Court had misapplied the judgment in Amrish Aggarwal by staying the passing off suits. Paragraph 44 of the judgment was not part of the ratio decidendi, and as such, the Single Judge was not bound to follow it. The court emphasized that a Single Judge is not bound by an obiter dictum of a Division Bench of the same High Court, particularly when it contradicts established precedent and lacks legal reasoning. Accordingly, the Court set aside the stay order dated January 18, 2025, and directed that all the pending suits—TM Nos. 968/2016, 971/2016, 1030/2016, and 932/2016—proceed to trial along with TM No. 931/2016.

Author’s Comment: A Call for Doctrinal Coherence and Resolution by Larger Bench:

This decision reaffirms a crucial tenet of the doctrine of precedent: that only the ratio decidendi of a judgment possesses binding force, whereas obiter dicta, even if emanating from a Division Bench, lack precedential authority if they are unreasoned or conflict with established legal principles. This judgment emphasizes the necessity of maintaining doctrinal clarity to prevent the misapplication of incidental judicial remarks as binding law. This ruling serves to uphold the autonomy of common law rights—particularly the right of passing off—while also delimiting the scope of Section 124 of the Trade Marks Act, 1999, which concerns the stay of infringement suits pending rectification proceedings.

 However, a critical unresolved issue lingers at the intersection of judicial interpretation and precedential conflict. In the earlier Division Bench decision of Puma Stationer Pvt. Ltd. v. Hindustan Pencils Ltd., the Court stayed the trademark infringement suit under Section 124 but permitted the passing off action to continue. Contrastingly, in the subsequent Amrish Aggarwal v. Venus Home Appliances Pvt. Ltd. (DB), the Division Bench—after noting the petitioner’s reliance on Puma (see para 34)—expressly rejected that reasoning (see para 53) and held (at paras 2 and 44) that both infringement and passing off claims must await the outcome of rectification proceedings.

 This divergence reveals an apparent conflict between two Division Bench decisions. In such cases, as established in Christian Louboutin v. Abu Baker, 2019 (78) PTC 262 (Del) (DB), paras 32 and 35, when two coordinate Bench decisions conflict, the matter should be referred to a larger Bench for authoritative resolution. The Balar Marketing judgment, however, sidesteps this necessity by characterizing the relevant observations in Amrish Aggarwal as obiter, thereby preserving the Puma precedent.This interpretive strategy is complicated further by the earlier Single Judge decision in Abbott Healthcare Pvt. Ltd. v. Raj Kumar Prasad & Anr. [2018:DHC:53] @Para 23,24, where the Court concluded that Puma’s observations regarding the continuation of passing off actions did not constitute binding precedent.

The judgment reasoned that since the Division Bench in Puma did not fully adjudicate the issue with reasoned analysis, its observations were not authoritative. This leads to a paradox: in Abbott, the Single Judge declined to treat Puma as binding, while in Balar, a subsequent Single Judge relied on Puma while dismissing Amrish Aggarwal as mere obiter. In both instances, the judges attempted to reconcile conflicting DB judgments through the lens of ratio vs obiter, yet arrived at opposing conclusions regarding which precedent to follow.

 The resulting jurisprudential inconsistency underscores the urgent need for clarity. When two Division Bench judgments express diametrically opposed views on the procedural bifurcation of infringement and passing off under Section 124, reliance on interpretive discretion at the Single Judge level only perpetuates confusion. A definitive pronouncement by a Larger Bench is essential to restore uniformity and doctrinal stability. Until such clarity is provided, judicial uncertainty will persist, potentially undermining the predictability and coherence that the doctrine of precedent is designed to secure.

Written By: Advocate Ajay Amitabh Suman, IP Adjutor, Patent and Trademark Attorney, High Court of Delhi.