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2021 Supreme(Kar) 372

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
ARAVIND KUMAR, PRADEEP SINGH YERUR, JJ.
ITC Limited A Company Within The Meaning Of Companies Act, 2013 – Appellant
Versus
CG Foods (India) Private Limited – Respondent
Commercial Appeal No.105 of 2021
Decided on : 28-09-2021

Advocate Appeared:
For the Appellant :SRI. K.G.RAGHAVAN, A/W MR.DHARMENDRA CHATUR, ADVOCATE, SANJANTHI SAJAN POOVAYYA & CO, ADVOCATES)
For the Respondent:SRI.DHYAN CHINNAPPA, A/W SRI LOMESH KIRAN N, SRI ABHINAY V & SRI TEJAS, ADVOCATES

Point of Law: Copyright - Court, with the eyes of the hypothetical purchaser, and having regard to the rules governing comparison of marks, finds that there is even a likelihood of deception, the test of deceptive similarity is satisfied.

Headnote:

COMPANY WITHIN MEANING OF COMPANIES ACT, 2013 - COMMERCIAL COURTS ACT, 2015 - SECTION 13(1 A) – Civil Procedure Code,1908 - SECTION 151 ,104 - Civil Procedure Code,1908 -ORDER XLIII RULE l (r) - Trade Marks Act. - Section 2(m) - Suit for passing off and copyright infringement - Whether impugned order passed by Commercial court requires to be re-looked into by court in appellate jurisdiction by re-appreciating facts - Whether, having regard to principles for grant of temporary injunction, defendant’s wrapper can be said to be a material misrepresentation of plaintiff’s wrapper - Whether defendant’s wrapper can be said to have infringed the copyright that exists in packaging of plaintiff’s wrapper - Whether impugned order of trial judge can be said to be arbitrary, perverse and against settled principles of law.

Finding of the Court:

No doubt, emoji of a ‘sun’ appearing on wrapper and colour scheme are eye-catching features and may be said to be distinctive in everyday sense of that term, but that is of no consequence so long as it is not shown to be 'distinctive in law'. Test for distinctiveness, as noticed earlier, is function that get up actually serves, rather than how well it is adapted to serve it. - This is not to suggest that colours or combination of colours have not been held to be 'distinctive in law' - Source identification, being dependent on features distinctive of plaintiffs goods, misrepresentation, for it to be material and actionable, must relate back to such distinctive features for a "source confusion’ to arise in mind of ordinary purchaser - Court are more concerned with impression produced on mind of potential customers by plaintiffs wrapper - Seen in t light, it would be noticed that plaintiffs wrapper is dominated by verbal marks as compared to purely visual marks - pure visual marks that are clearly visible on a casual look are ‘bowl of noodles’, ‘sun emoji’, red -orange colour scheme.

Result: Appeal is dismissed

JUDGMENT :

This is a plaintiffs appeal in a suit for passing off and copyright infringement, challenging the common order dated 22.06.2021 passed by LXXXIV Additional City Civil and Sessions Judge, Commercial Court, Bengaluru (for short ‘trial judge’) on I.A.Nos.I to III in O.S.No.177/2021, allowing the defendant’s application (I.A III) for vacation of ex-parte interim order and refusing to grant the relief of temporary injunction on the applications (I.A.No.I and I.A.II) filed by the plaintiff.

2. The plaintiff had filed I.A.I seeking to prevent the defendant from passing off defendant’s wrapper as that of the plaintiffs. I.A II had been filed to temporarily injunct the defendant, pending completion of suit, from using a wrapper which has the effect of infringing the plaintiff’s copyright in its (plaintiffs) wrapper.

3. Though matter is listed for admission, by consent of learned Advocates, the appeal is admitted and is taken up for final disposal, since hearing the interlocutory applications filed along with appeal is as good as hearing the appeal on merits.

4. For purpose of convenience, the application is referred to as 'plaintiff' and respondent as 'defendant'.

5. The brief facts relevant or preface for the present dispute are crystallized herein below :

Plaintiff has stated in the plaint that it is one of India’s largest business conglomerates, having diversified presence across industries such as cigarettes, Fast Moving Consumer Goods, hotels, packaging, paperboards and specialty papers and agribusiness. It is stated to have launched itself into the manufacturing and sales of ‘instant noodles’ in September 2010, under the brand name, ‘Sunfeast YiPPee!’ and plaintiff manufactures, markets and sells under said brand different variant of noodles, including ‘Magic Masala’, ‘Mood Masala’, ‘Classic Masala’, to name a few. Plaintiff claimed protection from alleged misrepresentation and copyright infringement in respect of the ‘overall visual appearance’ (wrapper) of ‘Magic Masala’ variant of Sunfeast Yippee noodles. The wrapper of "Sunfeast Yippee Magic Masala" has the following look on the wrapper:

IMAGE

6. The defendant has pleaded in its written statement that it is an Indian company, established in the year 2002 and is engaged in the business of manufacturing, supplying, and exporting food products. The defendant-company is part of the global conglomerate – CG Corp. Global, which is considered to be a leading player in the FMCG and packaged foods segment. The defendant claims that it carries on its business globally in the instant noodles market under the brand name ‘WAI WAI’. It claims to manufacture two types of noodles – ready to eat noodles (white noodles) or brown noodles.

7. The plaintiff alleges that the wrapper adopted by the defendant for packaging, one of its white-noodles product, ‘WAI WAI Xpress Noodles Majedar Masala” is deceptively similar or nearly identical to its (plaintiff's) wrapper used for packaging ‘Sunfeast Yippee Magic Masala’ brand of noodles. Plaintiff claims that the action of the defendant has caused damage to its goodwill and reputation in the market and as such defendant has to be restrained from using same.

8. The visual appearance of defendants wrapper is captured below :

It is in this narrow factual setting, that the plaintiff has sued defendant and it bases its cause of action in passing off and copyright infringement.

9. Before we proceed to consider the submissions of the parties, it would be helpful to state facts which are not in dispute in the present appeal. The defendant does not dispute that the plaintiff commenced operations for sale of its ‘Magic Masala’ variant of Sunfeast Yippee noodles in 2010 and is therefore, admittedly, the prior user. The use of an image of a bowl of noodles on the defendant’s packet is not objected to by the plaintiff – as it is descriptive of the contents of the packet and therefore, common to the trade.

10. We have heard Sri K.G. Raghavan, learned Senior counsel app

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Judicial Analysis

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