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2015 Supreme(Del) 4127

Delhi High Court
Manmohan Singh, J.
Glossy Color & Paints Pvt. Ltd. & Anr. - Appellant
Versus
Mona Aggarwal & Ors. - Resopndent
I.A. No. 14572/2014 in CS (OS) 2335/2014
Decided On : 09-09-2015

For the Plaintiffs :Mr. Sagar Chandra, Adv. with Ms. Surabhi Iyer, Ms. Ishani Chandra and Mr. Ankit Rastogi, Advocates.
For the Defendants No. 1 to 2 :Mr. Mohan Vidhani, Advocate. with Mr. Rahul Vidhani, Mr. Ashish Singh and Ms.Purva Chugh, Advocates.
For the Defendants No. 3 :Ms. Vidhya Gudwani, Advocate. with Ms. Sadhna Singh, Advocates.

Headnote:

Trademark Infringement - Paints - 1001 1243572, 1001 Superior Label 3075272, 1001 4232022, 1001 Superior 5129802, 1001 Acrylic Washable Distemper 11064682, 1001 3408532, 1000 113194672 - The plaintiffs, engaged in the manufacture and sale of paints, sought injunction against the defendants for infringing their trademarks. The plaintiffs claimed to be the statutory owner of rights in the trademarks, including the '1001' family of marks and the '1001' label, and alleged that the defendants' use of the '6004' label was deceptively similar to their '1001' label. The defendants argued that the colour combination had been used by them since 1976 and that the '6004' label was not similar to the plaintiffs' '1001' label. The Court found that the defendants' adoption of the '6004' label was tainted and deliberate, and that it was likely to cause confusion and deception among consumers. The Court granted an injunction restraining the defendants from using the '6004' label and ordered them to dispose of existing stocks bearing the mark '6004'.

Fact of the Case:

The plaintiffs, engaged in the manufacture and sale of paints, sought injunction against the defendants for infringing their trademarks. The plaintiffs claimed to be the statutory owner of rights in the trademarks, including the '1001' family of marks and the '1001' label. The defendants argued that the colour combination had been used by them since 1976 and that the '6004' label was not similar to the plaintiffs' '1001' label.

Finding of the Court:

The Court found that the defendants' adoption of the '6004' label was tainted and deliberate, and that it was likely to cause confusion and deception among consumers. The Court granted an injunction restraining the defendants from using the '6004' label and ordered them to dispose of existing stocks bearing the mark '6004'.

Issues: The main issue was whether the defendants' use of the '6004' label constituted trademark infringement and passing off, and whether the plaintiffs were entitled to injunctive relief.

Ratio Decidendi: The Court held that the defendants' adoption of the '6004' label was deliberate and likely to cause confusion and deception among consumers, thereby infringing the plaintiffs' trademarks. The Court also found that the plaintiffs had a prima facie case and that the balance of convenience lay in their favor, justifying the grant of injunctive relief.

Final Decision: The Court granted an injunction restraining the defendants from using the '6004' label and ordered them to dispose of existing stocks bearing the mark '6004'.

JUDGMENT :

Manmohan Singh, J.

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

2. The plaintiff No. 1 is a private limited company engaged in the manufacture and sale of paints, varnishes, polishes and other similar products. Plaintiff No. 2 is the Licensee and sister concern of plaintiff No. 1 operating in the same business.

3. The plaintiffs for the past 65 years are in the field of their business. They provide paints that are tailor-made to the customer’s requirement. They have a distribution network of over 400 dealers in Delhi itself and about 60-70 dealers outside Delhi to reach every nook and corner of the Indian market. They and their sister concerns are ISO: 9001:2000 and ISO: 1400: 2008 certified and many of the plaintiffs’ products are ISI Marked. The plaintiffs’ main commitment is quality products and manufacturing excellence.

4. The plaintiffs’ business grew over the time and many brands have been introduced by plaintiff No. 1 namely “1001” Zinc Paint, “1001” Acrylic Emulsion, “1001” Rakshak, Weathergold, Tuff Wood, Home Care Luxury Sheen Emulsion, “1001” Acrylic Washable Distemper, “1001” Clear Varnish, Weatherite Acrylic Exterior Paint, “1001” Exterior Enamel, “1001” Epoxy Paint etc. Many other brands have also been introduced by the sister concern of plaintiff No. 1, i.e. plaintiff No. 2 namely Auto King, Infinity, Lotus, Shehnai.

5. It is claimed by the plaintiffs that the trademark “1001” was first used and registered in the year 1946. All the rights in the “1001” family of marks along with the goodwill and reputation were transferred to the plaintiffs pursuant to a consent award passed by an Arbitrator in a family settlement through which the trademark bearing registration including all variants of the said trademarks were transferred to the plaintiffs. The above-mentioned award was validated by this Court vide order dated 3rd April, 1995 pursuant to which the said trademarks were transmitted and awarded to the plaintiffs along with all reputation and goodwill accruing thereto and thus the plaintiffs are the proprietor of the said trademarks.

6. The plaintiff is the statutory owner of rights in the trademarks provided below:-

MARK REGN

NO.

CLASS STATUS

1001

1243572

Registered

1001

Superior Label 3075272

Registered

1001

4232022

Registered

1001

Superior 5129802

Registered

1001

Acrylic Washable Distemper 11064682

Registered

1001

3408532

Registered

1000

113194672

Registered

    7. It is submitted by the plaintiffs that from the date of the said transfer, the plaintiffs have been using the “1001” family of marks continuously, extensively and uninterruptedly for almost two decades and hence by virtue of such use, enormous goodwill and reputation has accrued to the “1001” family of marks. It is further submitted that due to such long, continuous and uninterrupted use, the consuming public associates the marks solely and exclusively with the plaintiffs and with no other party.

8. In view of the priority in adoption and extensive, uninterrupted and continuous use of the trademark “1001” by the predecessor in interest of the plaintiffs prior to 1995 and by the plaintiffs themselves thereafter, has resulted in a secondary significance/meaning accruing to the trademark “1001” in favor of the plaintiffs entitling the plaintiffs to common law rights apart from the statutory rights in the “1001” family of marks.

9. It is further submitted that the plaintiffs have also been using a unique and distinctive label for the “1001” family of marks on their products. The label for “1001” has unique features which uses the color combination of red, white and yellow in which the words “1001” AC






































































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