Advocates appeared:
For the Petitioner(s): Mr. Rahul Chitnis, Adv. Mr. Hersh Desai, Adv. Ms. Shwetal Shepal, Adv. Mr. Aditya Khanna, Adv. Mr. Chander Shekhar Ashri, AOR
For the Respondent(s): Mr. Chander M. Lall, Sr. Adv. Mr. J Sai Deepak, Sr. Adv. Ms. Smriti Yadav, Adv. Mr. Nirupam Lodha, Adv. Mr. Dhiren Karania, Adv. Mr. Kshitij Parashar, Adv. Mr. Gautam Wadhwa, Adv. Ms. Ananya Mehan, Adv. Mr. R Abhishek, Adv. M/s. Khaitan & Co., AOR

Based on the provided legal document, here are the key points regarding the Supreme Court's judgment:

• Case Context and Outcome: The Supreme Court dismissed the appeals filed by Cryogas Equipment Private Limited and LNG Express India Private Limited against the High Court of Gujarat's order. The High Court had set aside the Commercial Court's rejection of Inox India Limited's suit for copyright infringement and restored the case for a trial. (!) (!)
• Core Legal Issue: The primary dispute centered on whether "Proprietary Engineering Drawings" related to cryogenic trailers qualified as "artistic works" under the Copyright Act, 1957, or "designs" under the Designs Act, 2000. The appellants argued the drawings were designs capable of registration and had been industrially reproduced more than 50 times, thus losing copyright protection under Section 15(2) of the Copyright Act. (!) (!) (!)
• Determination of Artistic Work vs. Design: The Court clarified that determining whether a work qualifies as a design or an artistic work requires a detailed examination of its nature, purpose, and aesthetic appeal versus functional utility. This is a mixed question of law and fact that cannot be resolved at the preliminary stage of an application under Order VII Rule 11 of the CPC. (!) (!) (!)
• Application of Section 15(2): The Court held that Section 15(2) of the Copyright Act, which bars copyright protection for designs applied to articles reproduced more than 50 times, applies only if the work in question is first classified as a "design" under the Designs Act. Since the classification itself is disputed and fact-intensive, the bar cannot be applied summarily. (!) (!) (!)
• Two-Pronged Test for Protection: The Court formulated a test to distinguish between copyrightable artistic works and registrable designs:
  1. Determine if the work is a pure "artistic work" (which enjoys copyright protection regardless of industrial application) or a "design" (which requires registration and is subject to the 50-reproduction limit).
  2. If it is not an artistic work, apply the "functional utility" test to see if it qualifies as a design under the Designs Act (i.e., does it appeal to the eye or is it purely functional?). (!)
• Precedents Cited: The judgment relied heavily on the Delhi High Court's decision in Microfibres Inc v. Girdhar (both Single Judge and Division Bench) to establish that original artistic works used as models for industrial production do not automatically lose their copyright status. It also referenced international principles from the US (e.g., Star Athletica) and the TRIPS Agreement regarding functional utility. (!) (!) (!) (!)
• Distinction between Drawing and Product: The Court noted a crucial distinction: the original drawing (2D) may remain an "artistic work" entitled to copyright, while the 3D product manufactured from it may be a "design." Copyright in the drawing does not cease merely because the product is industrially produced, unless the drawing itself is deemed a design capable of registration and meets the reproduction threshold. (!) (!)
• Other Claims: The suit also included claims regarding "Literary Works" (descriptions and processes), confidential information, and know-how. The Court ruled that these distinct legal issues could not be dismissed at the threshold and required a full trial. (!) (!) (!) (!)
• Directions: The Supreme Court directed the Commercial Court to:
  • Decide the interim injunction application within two months.
  • Conduct a full trial to ascertain the true nature of the drawings and other IP infringements within one year, applying the outlined tests. (!) (!)