IN THE HIGH COURT OF DELHI AT NEW DELHI
Suresh Kumar Kait, J.
VST Industries Limited - Plaintiff
Versus
Rudra Ventures Private Limited & Ors. – Defendants
I.A. No.11874 of 2021 in CS(COMM) 369 of 2021
Decided On : 07-01-2022
Civil Procedure Code, 1908 - Order XXXIX Rule 4 r/w Sec. 151 - Trade Marks Act - Section 17 - Ex parte ad interim injunction – Infringement of Trade mark - Cigarette boxes - Trade dress/packaging – Application against order passed by this Court, vide which ex parte ad interim injunction was granted in favour of plaintiff, present application has been preferred on behalf of defendants seeking vacation thereof - Whether infringement and passing off so claimed by the plaintiff, is likely to cause any confusion in respect of two products of parties TOTAL and TOPAZ being deceptively similar in minds of public, causing loss of business and reputation to either side - Impugned interim order, defendants, its Directors, partners or proprietors, as the case may be, its officers, servants and agents are restrained from manufacturing, selling, offering for sale, supplying, advertising, directly or indirectly dealing in any business unauthorizedly using plaintiff’s trade mark TOTAL or mark TOPAZ (written in same font and style as that of plaintiff) or any other mark deceptively similar to mark of plaintiff and permutations/combinations thereof amounting to infringement of plaintiff’s trade mark TOTAL and also to use essential features of plaintiff’s packaging/trade dress of its brand TOTAL amounting to infringement of plaintiff’s copyrights subsisting in packaging/trade dress of plaintiff’s trade mark TOTAL.
Finding of the court :
The basic background colour of packaging/cigarette box is shade of dark etallic black and dark blue colors, which is identical. Both boxes also contain ribbed lines which run across their respective surfaces. Front and back view of packaging is in similar font and even placement of letter is similar - Plaintiff’s TOTAL product, mentions words ‘Dual Flavors’ and that of defendant mentions ‘Twin Flavor’ in same font and colour combination. Cigarette boxes of both parties also contain a blue and silver pennants on sides of lid of box - According to defendants, before Mediation, while reserving rights to contest the suit, with an object to prevent further losses, despite being a proprietary holder of registered trademark and being a prior user of the trade name, defendants had agreed to change the packaging of the cigarette box and font, however, mediation could not prove successful as by filing the present suit plaintiff is trying to remove competition from the market - Court is of the opinion that though case of defendants is also on strong footing, however, ex-parte ad interim injunction granted to plaintiff vide order needs no interference by this Court. However, this Court is conscious that defendants might also be suffering hardships, which is unquantifiable and therefore, prayer made by learned senior counsel for the defendants that tobacco is a perishable item and so the cigarette sticks seized by the Court Commissioner vide order be released, is allowed and it is directed that same shall be released only for export outside India in fresh packaging, subject to an undertaking furnished on affidavit by the defendants that they shall maintain accounts in respect of the sales and make the same available to the Court as and when directed.
Result : Application disposed of
ORDER :
I.A. No.11874/2021 (under Order XXXIX Rule 4 r/w Sec. 151 CPC)
1. Aggrieved against the order dated 10.08.2021 passed by this Court, vide which ex parte ad interim injunction was granted in favour of plaintiff, the present application has been preferred on behalf of defendants seeking vacation thereof.
2. Pertinently, vide impugned interim order, defendants, its Directors, partners or proprietors, as the case may be, its officers, servants and agents are restrained from manufacturing, selling, offering for sale, supplying, advertising, directly or indirectly dealing in any business unauthorizedly using the plaintiff’s trade mark TOTAL or the mark TOPAZ (written in the same font and style as that of the plaintiff) or any other mark deceptively similar to the mark of plaintiff and permutations/combinations thereof amounting to infringement of plaintiff’s trade mark TOTAL and also to use the essential features of the plaintiff’s packaging/trade dress of its brand TOTAL amounting to infringement of the plaintiff’s copyrights subsisting in the packaging/trade dress of the plaintiff’s trade mark TOTAL.
3. The defendants have challenged the said order on the ground that defendants No.2 & 3 had adopted the mark TOPAZ in the year 2011, who are said to be sister concern of defendant No.1, which was incorporated in the year 2009. Thereby, respondents claim to be prior user of the trade mark TOPAZ since the year 2011 as against the claim of plaintiff, who adopted the mark TOTAL in the year 2015. Defendant No.3 claims to be registered proprietor of mark TOPAZ since the year 2015, which is still subsisting.
4. During the course of hearing, Mr. Jayant Mehta, learned senior counsel appearing on behalf of applicants/defendants submitted that plaintiff has not approached this Court with clean hands, as it claims to have known about defendants’ product in July, 2021, whereas the product of defendants is available in the market since the year 2011.
5. Learned senior counsel further submitted that defendants had adopted the unique and distinctive trade dress/packaging for marketing of TOPAZ brand in the year 2011 and it has no relevance to the copyright registrations obtained by the plaintiff for its product under the mark TOTAL, as the same are distinct and dis-similar. With respect to plaintiff’s allegation that defendants have copied the pictorial guidelines, learned senior counsel submitted that pictorial guidelines have been issued by the Government in July, 2020 and made effective from December 01, 2020. Learned counsel also submitted that the plaintiff does not have a word mark registration for the mark TOTAL and all registrations of the plaintiff pertain to device marks/label marks and so, no case for infringement is made out.
6. Learned senior counsel next submitted that plaintiff has admitted use of label since 20.02.2020, as has been mentioned in its trade mark application, whereas defendants in their application have mentioned use of trade mark since the year 2015 and also, the label of defendants is entirely different for which plaintiff has been given registration.
7. Learned senior counsel drew attention of this Court to the provisions of Section 17 of the Trade Marks Act to submit that when a trade mark contains any matter which is common to the trade or is otherwise nondistinctive, the registration does not confer any exclusive right in the matter forming part of the whole trade mark so registered. Learned senior counsel submitted that in Para-28 of the petition, plaintiff has admitted that it has no issue on the defendants’ use of wordmark TOPAZ.
8. To submit that plaintiff has failed to establish case of passing of against the defendants, learned senior counsel drew attention of this Court to Para-3(p) of the application to compare the other brands than TOPAZ in the industry with the plaintiff’s brands to show that the imag
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