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2007 Supreme(Del) 103

143 (2007) DELHI LAW TIMES 564
DELHI HIGH COURT
A.K. Sikri, J.
HONDA GIKEN KOGYO KABUSHIKI KAISHA - PLAINTIFF
Versus
RAKESH BHRAY & OTHERS - DEFENDANT
CS (OS) No. 681 of 2002
Decided on : 16.1.2007

Advocates appeared:
For the Plaintiff:Mr. Man Mohan Singh, Advocate.
For the Defendants: Nemo.

The central legal point established in the judgment is the fraudulent adoption and use of trademarks, the priority right of the plaintiff to use the trademark HONDA, and the mala fide intention of the defendants in adopting the trademark HANDA.

Headnote:

Trademark Infringement - Automobile Industry - The Trade Marks Act, 1999, Section 29(4), Section 134 - The plaintiff, a reputed automobile manufacturer, sought injunction against defendants for infringing its trademark HONDA. The court found that the defendants' use of the trademark HONDA in relation to welding electrodes was fraudulent and intended to deceive the public. The court held that the defendants' adoption of the trademark HANDA after initially using HONDA was motivated by a mala fide intention to ride on the goodwill of the plaintiff. The court relied on the plaintiff's priority right to use the trademark HONDA and granted injunction and delivery of offending goods in favor of the plaintiff.

Fact of the Case:

The plaintiff, a renowned automobile manufacturer, filed a suit seeking injunction, delivery up, and damages against the defendants for infringing its trademark HONDA by using it in relation to welding electrodes.

Finding of the Court:

The court found that the defendants' use of the trademark HONDA in relation to welding electrodes was fraudulent and intended to deceive the public. The court also concluded that the defendants' adoption of the trademark HANDA after initially using HONDA was motivated by a mala fide intention to ride on the goodwill of the plaintiff.

Issues: The main issues were the fraudulent use of the trademark HONDA by the defendants and their subsequent adoption of the trademark HANDA with a mala fide intention.

Ratio Decidendi: The court relied on the plaintiff's priority right to use the trademark HONDA and the fraudulent nature of the defendants' adoption and use of the trademarks HONDA and HANDA. The court also considered the defendants' intention to deceive the public and ride on the goodwill of the plaintiff.

Final Decision: The court decreed the suit in favor of the plaintiff, granting injunction and delivery of offending goods, but rejected the claim for damages due to lack of evidence.

JUDGMENT

A.K. Sikri, J.(Oral)-The plaintiff has filed this suit seeking permanent injunction, delivery up and damages, etc. against the defendants on , the ground that the defendants are infringing the plaintiffs trademark HONDA. The plaintiff, as noted in detail hereinafter, is the reputed manufacturer of automobile including cars, scooters and motor-cycles, etc. under the trade name HONDA. The plaintiff wants to restrain the defendants from using the trademark HONDA/HANDA in respect of their goods namely welding electrodes. The averments on the basis of which the suit is filed are as follows:

Plaintiff is a limited liability company incorporated under the Laws of Japan as Honda Giken Kogyo Kabushiki Kaisha, also trading as Honda Motor Co. Ltd., with its registered office ill Japan and Sh. Sudhir D. Ahuja is the constituted attorney of the plaintiff company. Plaintiff adopted the expression HONDA as the key and principal feature of its trademark and trade identity ever since incorporation in the year 1948, and has been manufacturing and selling motor cycles, motor cars, power equipments, among many goods, under the above said trademark. The plaintiff has been conducting its commercial activities world wide, for over half a century and in India, for over four decades under the said trademark HONDA.

2. Plaintiff is the largest seller of motor cycles in the world and also has a formidable presence in the four-wheeled passenger cars segment of the automobile industry. The plaintiff is among the twelve largest automobile producers in the world. The plaintiff has over 100 production facilities in 39 countries of the world including India. The plaintiff has been using the trade mark HONDA in India for a number of years. Many of its products have been imported under the trademark HONDA into India and have been in constant use for decades. Examples of such use are the use by individuals who had imported HONDA marked motor cars into India at least since the year 1964. The plaintiff began regular and substantial operations in India since the year 1984 by establishing joint venture operations to produce motor cycles (HERO HONDA), power products (SHRIRAM HONDA Portable Generators). Sales in India of all the said products of the plaintiff have grown by leaps and bounds ever since the year 1984, at the least, and such growth is continuing. In addition, the plaintiff at present has its own motor car manufacturing plant near Delhi under the name Honda Motors India Ltd., and a two-wheeler manufacturing plant under the name Honda Scooters and Motor Cycles India Ltd.

3. The annual consolidated net sales and other operating revenue for the year ending March 31,2001 of the plaintiff for its goods and services under the trade mark HONDA was approximately 52,169,734 U.S. Dollars. The plaintiff spends enormous sums towards advertisements for its goods and services, under the trademark HONDA. By virtue of initial adoption over half a century ago and extensive use worldwide the trade mark/ trade name HONDA has become exclusively associated with the plaintiff in the eyes of the consumers. In fact, the word HONDA has acquired the status of world famous mark, and any goods bearing the said mark are assumed to have been sourced from the plaintiff by the consumers all over the world including India. Many newspapers/periodicals having worldwide circulation have written about the plaintiff and its operations in very high terms and also advertisements of the plaintiff in various magazines have appeared from time-to-time.

4. The trade mark HONDA has been registered in various classes in over 157 countries, including India in the name of the plaintiff. In particular, the following registrations are relevant:

MARK REGN. CLASS STATUS DATE

NUMBER

HONDA 201233 12 REGISTERED 14.3.1961 HONDA 225243 07 RECISTERED 9.11.1964 HONDA 422777 07 REGISTERED 4.6.1984

HONDA 393803 12 REGISTERED 5.8.1982

5. The trademark HONDA, in India has been continuous extensive and considerable as














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