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Grants to ITC Against Gold Flake Counterfeiters
In a decisive move against counterfeit cigarette manufacturing, the has granted an to , restraining a group of defendants from producing, selling, or distributing fake “Gold Flake” cigarettes. The order, passed by Justice Jyoti Singh on , follows a police raid that uncovered an elaborate counterfeiting operation concealed within an old school building disguised as a cattle shed. The seizure included over 11.28 lakh counterfeit cigarettes, machinery, and packaging materials valued at an estimated ₹1.44 crore.
The case highlights the growing menace of in the fast-moving consumer goods sector, where counterfeiters often exploit well-known brands to pass off substandard products. For ITC, whose “Gold Flake” trademark has been in continuous use since , the ruling reaffirms the strength of statutory and common law protections available to established marks.
Cattle Shed Camouflage Exposes Counterfeit Ring
The illicit operation came to light after ITC’s market surveillance team received intelligence about suspicious activity at a premises in Village Dudhli Khadar. Acting on the tip, ITC lodged a police complaint on , and a search was conducted the same night. The site, an old school building, was deliberately camouflaged behind a board advertising a “gaushala” (cattle shed) to evade detection. Inside, about twenty workmen were found manufacturing counterfeit “Gold Flake Premium” cigarettes.
The defendant, Ravi Kishor, who was present at the premises and claimed ownership, could not produce any licence or authorisation to manufacture cigarettes or to use ITC’s trademarks. He told police that the raw material, packaging, and machinery had been sourced from Cambodia. Police registered an FIR against him under provisions of and .
Police Seize 11.28 Lakh Fake Cigarettes
The scale of the seizure underscores the sophistication of the counterfeiting network. Authorities recovered 94 cartons of ready-made counterfeit cigarettes (over 11 lakh sticks), 13 cartons of loose cigarettes, rolls of counterfeit filter paper, 124 cartons of empty packets, wholesale packaging bearing the “Gold Flake Premium” logo, and multiple automatic cigarette manufacturing machines. The goods and machinery together were valued at approximately ₹1.44 crore.
Such large-scale counterfeiting not only infringes intellectual property rights but also poses serious public health risks, as unregulated cigarettes may contain harmful substances. The court noted this concern in its order, observing that the potential harm to consumers from inferior, unregulated cigarettes was a serious issue.
Court’s Strong Observations on
The court held that ITC had made out a strong case. It emphasised that ITC’s trademark registrations conferred a to exclusive use under , and any violation amounted to infringement under , apart from the flowing from over a century of continuous use.
Justice Singh remarked, “Defendants have dishonestly copied the GOLD FLAKE trademarks as also the trade dress/packaging, in every element.” Since the marks, goods, trade channels, and consumer base were all identical, the court concluded that “ amongst members of public are inevitable.”
The court agreed that the operation was not just infringing ITC’s trademark and copyright but also amounted to its goods. It restrained the defendants and anyone acting on their behalf from manufacturing, selling, marketing, or distributing the counterfeit products, or from using any of ITC’s registered marks—including Gold Flake, its roundel devices, the Gold Flake Premium trade dress, Wills, Honeydew, Star device, or the ITC device—or anything to them, till the next hearing.
Public Health Concerns Highlighted
A notable aspect of the judgment is the court’s recognition of the public health dimension. Counterfeit cigarettes are often produced without any quality control, potentially containing harmful additives or contaminants. The court observed that the sale of such products could endanger consumers, especially given the unregulated nature of the manufacturing process. This observation aligns with broader judicial trends linking intellectual property enforcement to consumer protection and public welfare.
Legal Implications for Brand Protection
This ruling serves as a strong deterrent for counterfeiters and reinforces the importance of robust market surveillance by brand owners. The case also demonstrates the efficacy of coordinated action between private companies and law enforcement. ITC’s swift response—lodging a complaint the same day intelligence was received—enabled the police to conduct an overnight raid and secure critical evidence.
For legal practitioners, the judgment reaffirms the principles of and under Indian law. The court’s reliance on both statutory rights under and based on long-standing use provides a comprehensive framework for protecting well-known marks. Additionally, the inclusion of copyright claims under adds another layer of protection for packaging and artistic elements.
Conclusion
The ’s in favour of ITC sends a clear message that counterfeiting operations, no matter how cleverly disguised, will face swift legal consequences. The case underscores the importance of vigilant trademark enforcement and the role of the judiciary in safeguarding both commercial interests and public health. As the matter proceeds to the next hearing, the defendants remain restrained from any further infringement, and the seized goods stand as evidence of a sophisticated counterfeit network brought to a halt.
