Unauthorized use of copyrighted material and trademarks for commercial purposes constitutes infringement and passing off, leading to liability for damages and punitive measures.

MANMOHAN SINGH, J.

1. The plaintiffs have filed the present suit for permanent injunction restraining infringement of registered trademarks, infringement of copyright, passing off, rendition of accounts, damages and delivery up etc against the defendants.

2. The plaintiffs are private limited companies engaged in the business of producing, exhibiting and distributing cinematograph films.

3. The plaintiffs are the copyright owners and administer all intellectual property in respect of 32 cinematograph films, including the iconic and eternal hit film "SHOLAY". The other hits in the Sippy repertoire of films include films such as ‘Johar Mehmood in Goa', Bhramachari', Bandhan', Andaz', `Seeta Aur Geeta', `Shaan', ‘Saagar, Patthar Ke Phool', Sheshensha Hameshaa' etc.

4. The history of the plaintiffs companies and devolution of rights in the film is summarized herein below;

a) 26th November, 1954: Plaintiff No.2 was incorporated under the leadership of the late Mr. G.P. Sippy to produce and handle distribution of cinematograph films. Certificate of Incorporation and Memorandum and Articles of Association of plaintiff No.2 has been exhibited as Ex PW 1/3 and Ex PW 1/4.

b) 3rd August, 1965: M/s Sippy Films, a partnership firm, was formed. Films belonging to the Sippy repertoire were produced through this firm. Table summarizing the dates of appointment and retirement of various members of the Sippy family who became partners in the firm and Directors of plaintiff No.2 has been marked as Mark A.

• Mr. Ajit Sippy (defendant No.7), through whom defendant Nos.3, 5 and 6 claimed to have acquired certain rights, was admitted as a partner of M/s Sippy Films on 1st January, 1976 and retired on 15th September, 1976. The retirement deed by virtue of which defendant No.7 relinquished all rights in the Sippy repertoire has been exhibited as Ex PW1/5.

c) 10th September, 1997: Plaintiff No.2 was admitted as a partner in the partnership firm. The deed of partnership has been marked as Mark N.

d) 11th September, 1997: M/s Sippy films, the erstwhile partnership firm has only two partners remaining i.e. Mr. Vijay Sippy and plaintiff No.2. The deed of partnership has been marked as Mark O.

e) 17th April, 1998: Dissolution of the partnership firm on the death of Mr. Vijay Sippy. Extract from the Register of Partnerships certifying the dissolution of M/s Sippy Films has been exhibited Ex PW1/9. After dissolution of the partnership firm, plaintiff No.2 through Mr. Sascha Sippy, the sole heir of Mr. Vijay Sippy and one of the Directors of plaintiff No.2, continued to exercise all rights in the Sippy repertoire and the name Sippy Films' came to denote a proprietary concern of plaintiff No.2. The last will of Mr. Vijay Sippy in favour of his son Mr. Sascha Sippy has been marked Mark C.

f) 11th September, 2000: Plaintiff No.1 was incorporated in order to capitalize on the brand value and merchandising potential inherent in the iconic hit film ‘Sholay'. Copies of the certificate of Incorporation, Articles and Memorandum of Association of plaintiff No.1 has been exhibited as Ex PW 1/11and Ex PW 1/12. The gift deed dated 14th September, 2000 whereby plaintiff No.2 transferred all the right, title and interest in the film Sholay to plaintiff No.1 has been exhibited as Ex PW1/13.

5. The film Sholay released on 15th August, 1975 under the Sippy Films banner, the film SHOLAY was an instant hit. Over the years, the film has not only achieved a cult status but still remains the box office gold standard for blockbuster films of Indian cinema. Several memorable quotes, books and case studies written about SHOLAY has been exhibited as Ex PW1/14, Mark D, Ex PW1/16, Ex PW1/17, Mark E (Colly), Ex PW1/19, Ex PW1/20 and Mark F which illustrates the tremendous goodwill and reputation enjoyed. The table summarizing the most memorable quotes in the above exhibits h