2017 Supreme(Del) 839
IN THE HIGH COURT OF DELHI AT NEW DELHI
BADAR DURREZ AHMED & ASHUTOSH KUMAR, JJ.
BRITANNIA INDUSTRIES LTD. – Appellant
Versus
ITC LIMITED. – Respondent
FAO (OS) (COMM) 77 of 2016 & CM Nos.33194-97 of 2016
Decided On : 10-03-2017
For the Appellant :Mr. Sudhir Chandra Agrawal, Senior Advocate with Mr. Sagar Chandra, Ms. Ishani Chandra and Mr. Ankit Rastogi
For the Respondent:Mr. Rajiv Nayyar, Mr. Sandeep Sethi and Ms. Pratibha M. Singh, Sr. Advocates with Mr. Sudeep Chatterjee, Ms. Jaya Mandelia, Ms. Nupur Lamba and Mr. Nikhil Lal
Passing off depends on the goodwill and reputation of the trade dress, and the claimant must establish that the trade dress has become distinctive of its goods to the exclusion of others. Colors and color combinations are not inherently distinctive, making it difficult to claim exclusivity over them, especially when in use for a short while.
Headnote:
PASSING OFF - TRADE DRESS - Code of Civil Procedure, 1908 - Order XXXIX Rules 1 & 2 - [Section 44, Section 45, Section 8, Section 10, Section 11, Section 12, Section 13, Section 14, Section 15, Section 16, Section 17, Section 18, Section 19, Section 20, Section 21, Section 22, Section 23, Section 24]
Fact of the Case:
ITC filed a suit seeking an injunction against Britannia for allegedly using a deceptively similar trade dress for its biscuit. The court granted an interim injunction restraining Britannia from using the impugned packaging for its biscuit during the pendency of the suit.
Finding of the Court:
The court found that ITC failed to establish that the combination of yellow and blue in its packaging had become exclusively identifiable with its product, and therefore, was not entitled to an interim injunction.
Issues: The issues revolved around whether the combination of yellow and blue in ITC's packaging had become distinctive of its goods, and whether Britannia's use of similar packaging constituted passing off.
Ratio Decidendi: The court emphasized that passing off depends on the goodwill and reputation of the trade dress, and ITC failed to establish that the yellow-blue combination had become exclusively identifiable with its product. The court also highlighted that colors and color combinations are not inherently distinctive, making it difficult to claim exclusivity over them, especially when in use for a short while.
Final Decision: The court set aside the interim injunction granted to ITC, ruling that ITC was not entitled to it. No order as to costs was made.
BADAR DURREZ AHMED, J.
1. This appeal is directed against the order passed by a learned single Judge of this court on 06.09.2016 in IA No.10139/2016 which was an application under Order XXXIX Rules 1 & 2 of the Code of Civil Procedure, 1908 (hereinafter referred as ‘CPC’). The said application was filed by the respondent/plaintiff (ITC) in its suit being CS (Comm) 1128/2016.
2. ITC had filed the said suit seeking an injunction restraining the appellant/defendant (Britannia Industries Limited) from violating its purported rights in the packaging/trade dress of its product “Sunfeast Farmlite Digestive – All Good” biscuit by allegedly using a deceptively and confusingly similar trade dress for its “Nutri Choice Digestive Zero” biscuit. An injunction was sought for restraining Britannia from, inter alia, passing off ITC’s alleged rights in the trade dress/packaging/label and dilution of the mark etc.
3. The learned single Judge has, by virtue of the impugned order, granted an interim injunction against Britannia and in favour of ITC in the following manner:-
“44. An interim injunction is, accordingly, issued restraining Britannia from using the impugned packaging get-up/wrapper for its Nutri Choice Digestive Zero biscuits in the present form during the pendency of this suit. It will however be open to Britannia to adopt the packaging it uses for the product internationally or while retaining the yellow colour, substitute the blue colour in the impugned packaging with any other distinctive colour other than variants of blue. In sum, it can adopt any packaging which is distinctively different from the packaging that is currently used by ITC for its Sunfeast Farmlite Digestive All Good biscuits.
45. The Court grants Britannia four weeks' time to phase out the existing stocks of Nutri Choice Zero Digestive biscuits with the impugned packaging. Britannia will maintain true accounts of its sales of Nutri Choice Zero Digestive biscuits with the impugned packaging from its launch till the date of discontinuance in terms of this order.”
4. Both the products are packaged solely in “pillow packages”. The packaging of ITC’s “Sunfeast Farmlite Digestive – ALL GOOD” Biscuit, which was allegedly launched in February 2016, is as under:-
xxx xxx
5. Britannia, evidently launched its product – “Nutri Choice Digestive Zero” biscuit – in July 2016. The packaging of Britannia product was as under:-
xxx xxx
6. Before we proceed further, it would also be pertinent to note that Britannia has been using a different box type packaging for the same biscuit in the international market. The packaging for the same in the international market is as under:-
xxx xxx
7. It is also relevant to point out that Britannia has been a market leader insofar as biscuits are concerned. Britannia Digestive biscuits are being sold under three different variants. One variant is the “Nutri Choice Hi Fibre Digestive” biscuit. The other variant is the “Nutri Choice Digestive 5 Grain” biscuit and the third variant is the one in issue, that is, the “Nutri Choice Digestive Zero” biscuit. The three variants were packaged as under:-
Sl. No.
Product
Variant
Colour Scheme
Used Since
1.
Nutrichoice Digestive
Hi-Fibre
Yellow+Red
October, 2014
2.
Nutrichoice Degestives
5 Grain
Yellow+Green
October, 2014
3.
Nutrichoice Degestive
Zero
Yellow+Blue
2016
8. From the operative portion of the interim injunction order, which has been extracted above, it is evident that Britannia has been restrained from using the colour blue in the packaging for the ‘Digestive Zero’ variant of biscuits, while it has been permitted to retain the colour – yellow. In other words, the entire controversy in the present appeal centres around the use of blue and/or its variants in the packaging. It is, therefore, clear that in case the appellant/Britannia uses the sa