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2016 Supreme(Del) 666

IN THE HIGH COURT OF DELHI AT NEW DELHI
MANMOHAN SINGH, J.
CARTIER INTERNATIONAL AG & OTHERS - Plaintiffs
Versus
GAURAV BHATIA & ORS - Defendants
CS(OS) No.1317/2014
Decided on : 4-1-2016

Advocates:
Advocate Appeared:
For the Plaintiffs : Mr.Pravin Anand, Adv. with Mr.Raunaq Kamath & Mr.Vishnu Rege, Advs.
For the Defendants : Defendants are ex-parte.

The main legal point established in the judgment is the deliberate and willful infringement of trademarks, leading to confusion among the purchasing public and causing damage to the plaintiffs' valuable reputation and goodwill.

Headnote:

Trademark Infringement - Luxury Brands - Trademarks Act, 1999, Section 2(zg), Section 135 - The judgment discusses the infringement of trademarks of luxury brands including CARTIER, PANERAI, VACHERON CONSTANTIN, and JAEGER LECOULTRE. The court found the defendants guilty of deliberate and willful infringement of the plaintiffs' proprietary rights, leading to a classic case of trademark infringement and passing off. The court awarded punitive damages of Rs.1 Crore in favor of the plaintiffs.

Fact of the Case:

The plaintiffs filed a suit seeking injunction restraining infringement of trademark, passing off, and damages. The defendants were found to be operating an e-commerce website offering counterfeit products bearing the trademarks of luxury brands for sale. The plaintiffs provided evidence of the defendants' infringing activities, including selling counterfeit products and using model names identical to those used by the plaintiffs.

Finding of the Court:

The court found the defendants guilty of deliberate and willful infringement of the plaintiffs' proprietary rights, leading to a classic case of trademark infringement and passing off. The evidence of the plaintiffs went unrebutted, and the defendants failed to file a written statement or cross-examine the plaintiffs' evidence.

Issues: The issues included trademark infringement, passing off, and the calculation of damages suffered by the plaintiffs due to the defendants' infringing activities.

Ratio Decidendi: The court held that the defendants' use of the plaintiffs' trademarks on counterfeit products amounted to deliberate and willful infringement, leading to confusion among the purchasing public and causing damage to the plaintiffs' valuable reputation and goodwill. The court also emphasized that a defendant who chooses not to participate in court proceedings must suffer the consequences of damages.

Final Decision: The court granted a decree for permanent injunction in favor of the plaintiffs, restraining the defendants from manufacturing, selling, or offering for sale any goods bearing the plaintiffs' trademarks. Additionally, the court awarded punitive damages of Rs.1 Crore in favor of the plaintiffs.

JUDGMENT :

MANMOHAN SINGH, J.


1. The plaintiffs have filed the present suit seeking inter alia permanent injunction restraining infringement of trademark, passing off, damages etc. It is alleged by the plaintiffs that the defendants are operating an e-commerce website where they are offering counterfeit products bearing the trademarks and logos of various luxury brands, including those of the plaintiffs, for sale. The defendants are ex-parte. The plaintiffs have produced the evidence by way of affidavit of Pankaj Pahuja as PW-1. The same was tendered in evidence as PW-1/A.

2. PW-1 has deposed that it has been signed on behalf of the plaintiffs by Mr. Flavio Mascetti in his capacity of the constituted, attorney of the plaintiff Companies. He identified the signatures of Mr. Flavio Mascetti on the plaint at the points marked 'C and 'D'. It is submitted that Mr. Flavio Mascetti is authorized to sign and verify the plaint by virtue of Powers of Attorney executed in his favor by plaintiffs which may be exhibited as Ex. PW-1/2 (colly).

3. The detailed affidavit of PW-1 has been filed on the lines of averments made in the plaint. The plaintiff No.1, Cartier International A.G. is the holder and proprietor of the trademark CARTIER in relation to, inter alia, a wide range of luxury products including watches, jewellery, writing instruments and leather goods. Plaintiff No.1 has been engaged in manufacture and sale of luxury products under the trademark CARTIER since 1847. On account of long, continuous and extensive use coupled with the high quality standards maintained by the plaintiff No.1, the trademark CARTIER has acquired a distinct and distinguished reputation so much so that the CARTIER brand is one of the recognized luxury brands in the world. Apart from being plaintiff No.1's trademark, the word CARTIER also constitutes an integral and dominant part of plaintiff No.1's corporate name/trading style. The trademark/name CARTIER has thus become distinctive of plaintiff No.1's business and products and is entrenched in the minds of the public, including the Indian population at large, all of whom instantly and unhesitatingly associate the mark/ name CARTIER with the products and business of plaintiff No.1. The CARTIER brand is an important source identifier of plaintiff No.1 and its business as well as a carrier of Plaintiff No.1's reputation and associated goodwill. Internet extracts pertaining to plaintiff No.1 and the CARTIER brand have been exhibited as Ex. PW-1/3 (colly).

4. The trademark CARTIER has also been recognized as a well-known mark as provided under Section 2(zg) of the Trademarks Act, 1999 and has consequently been incorporated in the list of well-known marks maintained by the Trademarks Registry. A printout of the said list has been exhibited as Ex. PW-1/4.

5. Plaintiff No.2, Officine Panerai AG, is the holder and proprietor of the trademark PANERAI in relation to watches and other horological and chronometric instruments. Plaintiff No.2 has been engaged in manufacture and sale of watches under the trade mark PANERAI since 1860. On account of long, continuous and extensive use coupled with the high quality standards maintained by plaintiff No.2, the trademark PANERAI has acquired a distinct and distinguished reputation so much so that PANERAI is one of the most widely recognized luxury brands in the world and is associated in the minds of the public with a proud tradition of style, quality and craftsmanship. It is stated that PANERAI, apart from being plaintiff No.2's trademark, also constitutes an integral and dominant part of plaintiff No.2's corporate name/ trading style. The trademark PANERAI has thus become distinctive of plaintiff No.2's business and products and is entrenched in the minds of the public, including the Indian population at large, all of whom instantly and unhesitatingly associate the mark/ name PANERAI with the products and business of plaintiff No.2. PANERAI is therefore an important source ide















































































































































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