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1990 Supreme(Del) 118

High Court Of Delhi
DHARAM PAL SATYA PAL - Appellant
Versus
JANTA SALES CORPORATION - Respondent
Interim Application 5664 of 1989
Decided On : 04/04/1990

Advocates Appeared:
M.L.MANGALA, PARVIN ANAND

A manufacturer with a prior user of a trademark has the right to seek a restraint order against another manufacturer who adopted a similar trademark on goods similar to those being manufactured by the plaintiff, on the principle of likelihood of confusion or deception arising from similarity of marks, even in a passing off action.

Headnote:

TRADEMARK - PASSING OFF - INJUNCTION - COGNATE AND ALLIED GOODS - LIKELIHOOD OF CONFUSION - PRIOR USER - SIMILARITY OF TRADE MARKS - COPYRIGHT INFRINGEMENT.

Fact of the Case:

Plaintiff, a partnership firm engaged in the manufacture and sale of Chewing Tobacco (Zafrani Zarda) under the trade mark "rajni" since 1980, filed a suit against the defendant for infringement of trademark and copyright. The defendant, M/s. Janta Sales Corporation, adopted an identical mark "rajani" for their Paan Masala, which the plaintiff alleged was likely to cause confusion and deception among the public.

Finding of the Court:

The court found that the plaintiff had established prior user of the trademark "rajni" since 1980 and had acquired a reputation and goodwill in the market. The court also held that the goods of the plaintiff and the defendant were cognate and allied, as both were manufactured by the same manufacturers, sold by the same shopkeepers, and displayed side by side. The court further found that the two trademarks were phonetically and visually similar, and that there was a likelihood of confusion and deception among the public.

Issues: 1. Whether the plaintiff had established prior user of the trademark "rajni" and acquired a reputation and goodwill in the market? 2. Whether the goods of the plaintiff and the defendant were cognate and allied? 3. Whether the two trademarks were phonetically and visually similar, and whether there was a likelihood of confusion and deception among the public?

Ratio Decidendi: The court relied on several precedents to establish the principles of trademark protection and passing off actions. The court held that the plaintiff had established a prima facie case of passing off, as the defendant's adoption of the similar trademark "rajani" was likely to cause confusion and deception among the public. The court also held that the plaintiff had established a prima facie case of copyright infringement, as the defendant's tin containers bore a colourable imitation of the plaintiff's artistic work.

Final Decision: The court granted an interim injunction restraining the defendant from using the trademark "rajani" or any other phonetically or visually similar trademark for their goods during the pendency of the suit. The court also directed the defendant to surrender their leftover stocks with the impugned trademark to the plaintiff on the expiry of six months.

Santosh Duggal, J.

( 1 ) THE plaintiff, a partnership firm having its registered office at Ansari Road, Darya Ganj, New Delhi, claims to be engaged in the manufacture and sale, inter alia, of Chewing Tobacco (Zafrani Zarda) and established in this trade since the year 1979. They state to have adopted the trade mark "rajni", in respect of Zafrani Zarda in the year 1980, and having used the same extensively since then, in the course of trade, and as such to have acquired enviable reptation with the purchasing public so much so that the said trade mark has come to be exclusively identified as the goods of the plaintiff s manufacture.

( 2 ) THE assertion further is that the plaintiff has established large and extensive sales of their product, under the aforesaid trade mark, during the past years, having spent huge amounts on publicity, as per figures detailed in the plaint. It is contended that by virtue of prior adoption and extensive user, the plaintiff has acquired exclusive rights to this trade mark "rajni" and that the adoption and/or user of an identical and/or deceptively similar mark by anybody else in relation to Zafrani Zarda or any other cognate or allied goods is bound to cause confusion and deception amounting to passing off. They further claim that the goods carrying the trade mark "rajni" are packed in containers with a distinctive design and unique get up, lay out, colour combination and arrangement and that the work relating to the said containers amounts to original artistic work in which the plaintiff holds valid copyright, under registration Nos. A-29946/80, A-30078/80, A-29897/80 and A-29888/89 and thus protected against infringement of this copyright.

( 3 ) THE present suit has been brought against the defendant M/s. Janta Sales Corporation, Industrial Area Jodhpur, Rajasthan, on the allegation of the plaintiff having found out that this defendant is engaged in the manufacture and sale of, inter alia, Paan Masala and has adopted an identical mark "rajani" in respect of the said goods. Feeling aggrieved by the adoption and use of this mark on behalf of the defendant, which is characterised as dishonest, mala fide, tainted and solely with a view to trade upon the reputation of the plaintiff and its trade mark of "rajni", and pass off their goods as that of the plaintiff, it is alleged that use of the mark "rajani" on the part of the defendant is bound to cause deception in the mind of unwary class of purchasers. The allegation further is that goods of the defendant were inferior to that of the plaintiff and the defendant has no justification for adoption of the mark in respect of Zafrani Zarda or any other cognate or allied goods, and use of this mark on the part of defendant violates the plaintiff s legal and vested rights, adding that the defendant has not only adopted an identical trade mark, but has also reproduced various features of plaintiff s artistic containers constituting infringement of the copyright. It is pleaded that the goods manufactured by the defendant, namely. Paan Masala and those by the plaintiff, namely. Chewing Tobacco are cognate and allied goods, both the goods being manufactured by the same manufacturers; sold by the same shopkeepers; and displayed side by side.

( 4 ) ALLEGING that the plaintiff came to know about use of the impugned trade mark on the part of the defendant in the month of July 1989 and further alleging that it was selling, and offering for sale, its goods under the impugned trade mark within the territorial jurisdiction of this court; a decree for permanent injunction is sought against the defendants, restraining them by themselves or through their servants, agents, representatives, dealers or anybody else acting for and on their behalf from manufacturing, selling, offering for sale, directly dealing or indirectly in Paan Masala or any other goods of cognate or allied nature under the trade mark "rajani" or any other mark as may be deceptively similar to the plaintiff



































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