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2005 Supreme(Del) 342

High Court Of Delhi
MOTORPRESSE INTERNATIONAL - Appellant
Versus
MISTRALE PUBLISHING PVT.LTD. - Respondent
O.M.P. : 349 of 2003
Decided On : 03/11/2005

Advocates Appeared:
PARIMAL TRIPATHI, PEEYUS A.KOTTAM, SITESH MUKHERJIq

The main legal point established is that the respondent's use of the trademark and logo constituted infringement, and the termination of the agreement was legal.

Headnote:

Trademark Infringement - Arbitration and Conciliation Act, 1996 - [Section 9] - [Section 27 of the Trade and Merchandise Act, 1958, Clause 4, 11, 12, 18] - The court discussed the Syndication and Licensing Agreement, the respondent's right to use the trademark, and the petitioner's transborder reputation. The court found that the respondent's use of the trademark and logo constituted infringement and restrained the respondent from using them.

Fact of the Case:

The petitioner sought an injunction to restrain the respondent from using the trademark and logo Auto Motor and Sport, alleging infringement and passing off. The respondent claimed that the termination of the agreement was illegal and asserted its right to continue using the trademark.

Finding of the Court:

The court found that the respondent's use of the trademark and logo constituted infringement and restrained the respondent from using them. The court also held that the respondent's assertion of the termination's illegality was unfounded.

Issues: The issues involved the legality of the termination of the agreement, the respondent's right to use the trademark, and the petitioner's claim of infringement and passing off.

Ratio Decidendi: The court held that the respondent's use of the trademark and logo constituted infringement, and the termination of the agreement was legal. The court also found that the respondent's assertion of the termination's illegality was unfounded.

Final Decision: The court made the injunction order absolute, restraining the respondent from using the trademark and logo, and from printing, publishing, or distributing the magazine under the title Auto Motor and Sport.

( 1 ) IN this petition under Section 9 of the Arbitration and Conciliation Act, 1996, the petitioner prays for an injunction restraining the respondent from using the trademark and logo Auto Motor and Sport or any substantial reproduction/imitation thereof in relation to any product or services so as to constitute infringement of the petitioner s trade mark and logo. The petition also prays for an injunction restraining the respondent from using any material or article of the petitioner made available to the respondent under the Syndication and Licensing agreement apart from appointment of a Local Commissioner for making an inventory of the products/magazine published by the respondent under the title "auto Motor and sport.

( 2 ) BRIEFLY stated, the petitioner s case is as under:-

( 3 ) THE petitioner is a company established and organised under the laws of germany. It is engaged in the publication of nearly 100 magazines and journals in nearly 17 countries most of which relate to automobiles. The respondent is also a company but registered under the Indian Companies Act, 1956 with its registered office at New Delhi. The respondent too is engaged in publication of magazines in india.

( 4 ) ACCORDING to the petitioner, on or around 8th February, 2001 the parties executed a Syndication and Licensing Agreement under which agreement the respondent was granted the exclusive right to (a) republish articles and material of the petitioner and (b) use the trademark and title Auto Motor and Sport in india in relation to a magazine in the field of motoring to be published by the respondent. The petitioner s case is that the respondent had, in the said agreement, acknowledged and agreed that the petitioner is the exclusive owner of the trademark auto Motor and Sport and that the respondent shall not by virtue of use of the trademark acquire any ownership, right, title or interest in the same. It was also agreed that the permitted use of the trademark shall enure to the benefit of the petitioner and the goodwill arising therefrom shall be the sole property of the petitioner. The fact that the respondent pursuant to the agreement obtains registration under the Press and Registration of Book Act, 1867 would not confer any right, title or interest whatsoever upon it in relation to the mark and title Auto Motor and sport. Among others, the agreement contained an arbitration clause which envisaged adjudication of disputes between the parties under the Conciliation and arbitration Rules of the International Chamber of Commerce.

( 5 ) THE petitioner s further case is that it has applied for and registered the trademark and logo Auto Motor and Sport in several countries and has been using the said title and logo since 1946 in Germany. It has thus been using the title and logo exclusively and continuously for a period of 57 years. International editions have been successfully launched in Europe and Asia and that the trademark, logo and title Auto Motor and Sport is associated with the product of the petitioner which is recognised internationally.

( 6 ) PURSUANT to the license granted under the agreement executed between the parties, the respondent appears to have started publishing the magazine Auto motor and Sport in India. The first issue whereof was published on February, 2001. The petitioner s case is that the respondent had in the said magazine, republished from time to time articles and materials of the petitioner. In May 2002 a Memorandum of understanding was also executed between Mr. Gautam Sen and Mr. Aman Syal, who owned and controlled the respondent company, with the object of facilitating smooth functioning of the current operations and future expansions of the respondent. The arrangement was, according to the petitioner, meant to tide over severe financial constraints that had arisen within the respondent company which had also led to consistent delays in bringing out the magazine and loss of goodwill of the petitioner. According to the


















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