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2020 Supreme(Del) 556

IN THE HIGH COURT OF DELHI AT NEW DELHI
V. Kameswar Rao, J.
Ufo Contemporary, Inc - Appellant
Versus
Creative Kids Wear (india) Pvt Ltd & Ors. - Respondent
Civil Suit (Comm) No. 375 of 2020; Interlocutory Application No. 8010 of 2020, 9611 of 2020
Decided On : 23-11-2020

Advocates Appeared:
Hemant Singh, Advocate, Mamta Rani Jha, Advocate, Wasim Shuaib Ahmed, Advocate, Sambhav Jain, Advocate, A. Murali, Advocate, Bansuri Swaraj, Advocate, Ana Upadhyay, Advocate, Dheeraj Nair, Advocate, Mohit Bakshi, Advocate, Vishrutyi Sahni, Advocate, Nilofar Absar, Advocate, Kunal Kher, Advocate, Akanksha Kalyanpur, Advocate

The main legal point established in the judgment is that the use of a deceptively similar trade mark constitutes infringement and passing off, and the use of a trade mark for export satisfies the requirements of Section 56 of the Trade Marks Act, 1999.

Headnote:

UFO - Infringement and Passing Off - Section 151 CPC - Trade Marks Act, 1999 - Section 29(9), Section 28, Section 29(2)(c) - K.R. Krishna Chettiar v. Sri Ambal, (1970) AIR SC 146 - Kaviraj Pandit Durga Dutt v. Navaratna Pharmaceutical, (1965) AIR SC 980 - Ruston and Hornby v. Zamindara Engineering, (1970) AIR SC 1649 - J.K. Jain & Ors. v. Ziff-Davies, (2000) 20 PTC 244 (Del) - H&M Hennes & Mauritz v. HM Megabrands, (2018) 251 DLT 651 - B.K. Engineering v. Ubhi Enterprises, (1985) 5 PTC 1 (Del) (DB) - Wockhardt v. Eden Healthcare, (2014) 58 PTC 14 [Bom] - Ajanta Pharma v. Zuventus Healthcare, (2020) 82 PTC 363 [Del] - Laxmikant V. Patel vs Chetanbhai Shah and Another, (2002) 3 SCC 65 - Toyota Jidosha Kabushiki Kaisha v. Prius Auto Industries Ltd., (2018) 2 SCC 1 - Vishnudas Trading v. Vazir Sultan Tobacco Co. Ltd., (1997) 4 SCC 201 - Nandhini Deluxe v. Karnataka Co-Operative Milk Producers Federation ltd. and Ors., (2018) 9 SCC 183 - Power Control Appliances v. Sumeet Machines (P) Ltd., (1994) 2 SCC 448 - Ramdev Food Products (P) Ltd. v. Aravindbhai Rambhai Patel and Ors., (2006) 8 SCC 726 - V.K. Jain & Ors. v. Ziff-Davies, (2000) 20 PTC 244 (Del) - Cadila Pharmaceuticals Ltd. v. Sami Khatib,MANU/MH/0497/2011 - Kirorimal Kashiram Marketing Agencies Pvt. Ltd. v. Sachdeva and Sons Industries Pvt. Ltd.,MANU/DE/1773/2008 - Friends Overseas v. Swadi Product U.K. Ltd. and Ors.,MANU/DE/2941/2012 - Pankaj Goel v. M/s. Dabur India FAO(OS) 82/2008 - M/s. Hindustan Pencils Private Limited v. M/s. India Stationary Products Co. & Anr.,1989 SCCOnLineDel 34 - Midas Hygiene Industries Pvt. Ltd, v. Sudhir Bhatia, (2004) 3 SCC 90

Fact of the Case:

The plaintiff filed a suit for infringement and passing off in relation to its trade mark UFO. The defendant Nos. 2, 3, 8 and 9 were associated with the plaintiff for manufacturing and exporting UFO branded clothing. The defendants were found to be using a deceptively similar trade mark and selling infringing products on various e-commerce platforms.

Finding of the Court:

The court found that the defendant's use of the mark was infringing the plaintiff's registered trade mark UFO and constituted passing off. The court also rejected the defendant's plea of estoppel and held that the plaintiff's use of the mark for export satisfied the requirements of Section 56 of the Trade Marks Act, 1999.

Issues: The issues included infringement and passing off of the plaintiff's trade mark, the defendant's plea of estoppel, and the applicability of Section 56 of the Trade Marks Act, 1999.

Ratio Decidendi: The court held that the defendant's use of a deceptively similar trade mark constituted infringement and passing off. The court also found that the plaintiff's use of the mark for export satisfied the requirements of Section 56 of the Trade Marks Act, 1999.

Final Decision: The court restrained the defendants from manufacturing, selling, or dealing in goods bearing the impugned trade marks until the final disposal of the suit.

JUDGMENT

V. Kameswar Rao, J. - IA 8010/2020

    1. By this order, I shall decide IA 8010/2020 filed by the plaintiff under Order XXXIX Rule 1 & 2 read with Section 151 CPC.

    2. The case of the plaintiff, as contended by Mr. Hemant Singh is that the suit has been filed for infringement and passing off in relation to plaintiff''s trade mark UFO (word per se) registered in India vide trade mark registration No. 388739 dated April 13, 1982 in class 25 for description of goods comprising trousers including pants and blouses and shirts for men, women and children. The registration is valid till April 13, 2030. According to Mr. Singh, the trade mark UFO is an arbitrary mark, which was adopted by the plaintiff in the year 1968 and has been registered in various countries. The trade mark UFO has been promoted extensively by various brand ambassadors and has also featured in the leading international magazines, which are circulated globally, as well as in India. The plaintiff has also registered its trade mark UFO as a domain name in 1998. The plaintiff gets its clothing manufactured for export and sale in international markets from third party manufacturers. The defendant Nos. 2, 3, 8 and 9 have been engaged and associated with such manufacturers of clothing under the trade mark UFO for and on behalf of plaintiff in India since 1970s till 2011. In this regard, he has relied upon the sale invoices bearing the trade mark UFO for the period between 2003-2011.

    3. Mr. Singh stated, the use of the trade mark UFO by the defendant Nos. 2, 3, 8 and 9 during the period 1970-2011 was by way of license granted by the plaintiff, one such agreement dated October 21, 1982 has been placed on record. He stated that the said agreement was signed by the plaintiff and defendant Nos. 8 and 9 on behalf of Creative Casualwear Pvt. Ltd., which was a part of the Creative Group of Companies. He laid stress on the fact that defendant Nos. 2, 3, 4, 8 and 9 are all part of the Creative Group of Companies and were associated with the plaintiff by undertaking the manufacture and export of plaintiff''s product i.e. apparels under the trade mark UFO. He stated that in March, 2011, defendant No. 2 approached the plaintiff vide email dated March 30, 2011 to launch children''s clothing in India under the trade mark UFO. Vide e-mail dated May 07, 2011, the plaintiff agreed to grant license for the use of the trade mark UFO for kids-wear by sharing a draft license agreement. The said draft license agreement had depicted the trade marks proposed to be licensed for its use by the licensee in India. Vide e-mail dated June 08, 2011, the defendant No. 2 shared the logo it proposed to use with UFO written in the same manner in which it is currently being used by the defendants and is sought to be injuncted by the plaintiff on grounds of being an unauthorized use. The defendant No. 2 desired full ownership of the trade mark UFO in India instead of licensed use, which was categorically denied by the plaintiff vide its e-mail dated July 12, 2011. This led to the parties falling apart in respect of the then business relationship. Thereafter, the plaintiff started getting its clothing products for export, manufactured from another manufacturer till 2017. The plaintiff is in negotiations with other manufacturers in India for undertaking the said assignment.

    4. Mr. Singh would contend that it was only in the month of January, 2019 that the plaintiff came across trade mark of defendant No.1 published in Trade Marks Journal No. 1869 dated October 01, 2018 on a ''proposed to be used'' basis for garments falling in class 25. The plaintiff immediately filed opposition thereto since used in the advertised trade mark was the same which the plaintiff has disallowed the defendants from using, except by way of a license, to be granted by the plaintiff as is evident from communications exchanged in 2011. He stated that further inquiry by the plaintiff revealed that the defendants are even selling clo

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