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2005 Supreme(Del) 1048

High Court Of Delhi
HERO HONDA MOTORS LTD - Appellant
Versus
LAXMIKANT PATEL - Respondent
Decided On : 11/29/2005

The central legal point established in the judgment is the protection of intellectual property rights, including trademarks and copyrights, and the grant of remedies for infringement, such as permanent injunction, delivery up of infringing products, and damages.

Headnote:

TRADEMARK INFRINGEMENT - Intellectual Property - Companies Act, 1956 - Copyright Act, 1957 - [Companies Act, 1956, Copyright Act, 1957] - The court discussed the plaintiff's exclusive rights to use their trademark HERO HONDA, logo, and packaging material. The defendant was found to be counterfeiting the plaintiff's products, causing loss of profits and deceiving the public. The court granted a decree of permanent injunction, delivery up of infringing products, and awarded damages of Rs. 5 lakhs.

Fact of the Case:

The plaintiff filed a suit for trademark infringement, copyright, passing off, and other claims against the defendant for counterfeiting products bearing the plaintiff's trademark HERO HONDA.

Finding of the Court:

The court found that the defendant was infringing the plaintiff's trademark and logo, causing loss of profits and deceiving the public. The plaintiff was granted a decree of permanent injunction, delivery up of infringing products, and awarded damages of Rs. 5 lakhs.

Issues: Trademark infringement, copyright violation, passing off, and claim for damages.

Ratio Decidendi: The court held that the plaintiff had exclusive rights to use their trademark, logo, and packaging material, and the defendant's actions constituted infringement, causing harm to the plaintiff and the public.

Final Decision: The court granted a decree of permanent injunction, delivery up of infringing products, and awarded damages of Rs. 5 lakhs in favor of the plaintiff.

SANJAY KISHAN KAUL, J.

( 1 ) THE plaintiff has filed a suit for permanent injunction for infringement of trademark, copyright, passing off, delivery up, rendition of accounts, damages, etc. against the defendant. The plaintiff is a limited company incorporated and registered under the Companies Act, 1956 and is a Joint Venture incorporated on 19. 01. 1984 whereby 26% of the equity is held by the Indian Group being the hero Group and 26% by the Honda Motors Company of Japan, while the remaining equity is stated to be widely spread. The plaintiff is involved in the business of manufacture and sale of motorcycles under the trademark HERO HONDA since 09. 04. 1985. It is stated that apart from the said business, the plaintiff is also engaged in the manufacture of sale of readymade garments, hosiery, gloves, etc.

( 2 ) THE Joint Venture Group is stated to be mainly dealing with the manufacture of cycle and cycle parts and the japanese Joint Venture partner, Honda Motor Co. Ltd. is an internationally renowned name and trademark HONDA. The Joint Venture, thus, adopted the trademark HERO HONDA to reflect the goodwill of the business of both the two joint Venture Groups as an arbitrarily coined trademark.

( 3 ) THE plaintiff has set out the sales figures in para 5 of the plaint as under :-

( 4 ) THE promotional and advertisement expenses of the plaintiff are set out in para 6 of the plaint as under :-

( 5 ) THE plaintiff claims that by adoption of long and extensive user goods bearing the trademark HERO HONDA are exclusively associated with the products originating from the plaintiff. Apart from the Common Law Rights, the plaintiff is also the registered proprietor of the following marks :-

( 6 ) THE plaintiff has adopted a logo to represent its products consisting of three parallel lines at the base surmounted by a semi-circle, which is surmounted by a crown like structure. This logo was created by M/s. Shobhagya Advertisiing Services on behalf of the plaintiff and is, thus, claimed to be the original artistic work of the plaintiff within the meaning of section 2 (c) of The Copyright Act, 1957. The packaging of spare parts was created by M/s. Mansa Packagers Pvt. Ltd. , which is an artistic work owned by the plaintiff.

( 7 ) THE plaintiff came to know that there were several unscrupulous traders manufacturing motorcycle parts and other items bearing the plaintiff trademark HERO HONDA and the logo with the result that there was not only loss of profit, but the brand equity of the plaintiff was affected on account of inferior quality of the product sold in the market by such traders. The public was also stated to be, thus, a direct sufferer of the same. The defendant is stated to be one such trader. The plaintiff purchased the product of the defendant and found that apart from infringing the logo and the mark of the plaintiff, the product was of poor quality in finish and packaging. Thus, the defendant was counterfeiting the product of the plaintiff and selling the goods as that of the plaintiff. There was also violation of the registered trademark of the plaintiff.

( 8 ) AT the stage of filing of the suit, interim orders were granted and Local Commissioner was also appointed to seize the goods in question. The goods were taken possession of and then released on superdari to the defendant. The defendant, however, did not put in appearance and was proceeded ex parte. The plaintiff has filed the affidavit of ex parte evidence of Shri Sanjay mittal, the constituted Attorney of the plaintiff. The witness has proved the certified copy of the Board resolution of the plaintiff along with the Power of attorney as Exhibit P-1 and Exhibit P-2 respectively, which authorised institution of the suit. The sample invoices of the plaintiff have been proved as Exhibit P-3 and the advertisements of the plaintiff as Exhibit P-4. The Certificate of Registration of the two trademarks referred to above have been proved as Exhibit P-5 and exhibit P-6. The plainti

















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