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2014 Supreme(Del) 3406

IN THE HIGH COURT OF DELHI
Manmohan Singh, J.
World Book Inc. - Appellant
Versus
World Book Company (P) Ltd. - Respondent
I.A. Nos. 8971/2013, 11342/2013 and 12459/2013 in CS(OS) No. 1043/2013
Decided On : 15-10-2014

Advocates Appeared:
For the Appellant :Amarjit Singh, Manik Dogra, Anshuman Sharma, Neel Kamal, Vernica Tomar and Sadhvi, Advocate.
For the Respondent:Tapan Chaudhary, Advocates.

Headnote:

The case involves a dispute over the use of the trademark WORLD BOOK by the plaintiffs and the defendant. The plaintiffs are a corporation and a company responsible for the sales, marketing, and distribution of goods/services under the trademark/trade name WORLD BOOK. The defendant is a company registered under the Indian Companies Act, 1956, engaged in the business of publication of books, etc. The plaintiffs filed a suit for permanent injunction, damages for infringement of trade mark, passing off, dilution, unfair competition, delivery up, and rendition of account or damages against the defendant. The defendant filed an application under Order 39 Rule 4 for vacation of an ex-parte interim injunction passed against them. The court examined the relevant provisions of the Trade Marks Act, 1999, and the principles of infringement, passing off, and domain name protection. The court held that the plaintiffs had established a prima facie case for the confirmation of the ex-parte order of interim injunction and dismissed the defendant's application. The court also dismissed the plaintiffs' application for certain directions against the counsel of the defendants.

Fact of the Case:

The plaintiffs, a corporation and a company responsible for the sales, marketing, and distribution of goods/services under the trademark/trade name WORLD BOOK, filed a suit against the defendant, a company registered under the Indian Companies Act, 1956, engaged in the business of publication of books, etc., for permanent injunction, damages for infringement of trade mark, passing off, dilution, unfair competition, delivery up, and rendition of account or damages. The defendant filed an application under Order 39 Rule 4 for vacation of an ex-parte interim injunction passed against them.

Finding of the Court:

The court held that the plaintiffs had established a prima facie case for the confirmation of the ex-parte order of interim injunction and dismissed the defendant's application. The court also dismissed the plaintiffs' application for certain directions against the counsel of the defendants.

Issues: Whether the defendant's use of the trademark WORLD BOOK infringed the plaintiffs' trademark rights. Whether the defendant's actions constituted passing off. Whether the plaintiffs were entitled to protection of their domain names. Whether the interim injunction granted against the defendant should be confirmed.

Ratio Decidendi: The court found that the plaintiffs' trademark WORLD BOOK was a registered trademark and had acquired residual goodwill and reputation. The court held that the defendant's use of the mark WORLD BOOK as a trade name/mark and/or domain name was likely to cause confusion and deception in the mind of unwary class of customers. The court also found that the defendant's adoption of the name was not honest. The court concluded that the plaintiffs had established a prima facie case for the confirmation of the ex-parte order of interim injunction.

Final Decision: The court dismissed the defendant's application to vacate the interim injunction and confirmed the interim order passed against the defendant. The court also dismissed the plaintiffs' application for certain directions against the counsel of the defendants.

JUDGMENT :

Manmohan Singh, J.-

1. The present suit has been filed by the plaintiffs for permanent injunction, damages for infringement of trade mark WORLD BOOK, passing off, dilution, unfair competition, delivery up, and rendition of account or damages against the defendant. Along with the suit, plaintiff also filed an application under Order 39 Rule 1 and 2 being I.A. No. 8971/2013. The suit alongwith said interim application was listed before court on 27th May, 2013. After hearing, detailed ex-parte order was passed restraining the defendant, its directors, officers, agents, servants, representatives and assigns etc. from using the trade mark WORLD BOOK or any other mark that is deceptively similar to the plaintiffs' trade mark WORLD BOOK or any other mark that is deceptively similar to the plaintiffs' registered trade mark WORLD BOOK in respect of printing/publishing of books and other reference materials and educational products, either in print or in software versions as also on their website.

2. Upon service of interim order, the defendant filed its written statement and contested the prayer of interim order passed on 27th May, 2013. The defendant also filed an application under Order 39 Rule 4 for vacation of an ex-parte interim order being IA. No. 11342/2013. Another application bearing I.A. No. 12459/2014 was also filed by defendant under Order 3 Rule 4 CPC seeking certain directions against the counsel of the plaintiffs. By this order, I propose to decide the three pending applications.

The case of the plaintiffs

3. The plaintiff No. 1, a corporation organized and existing under the laws of Delaware, USA, is a publisher of encyclopedia and other reference materials that markets hundreds of reference and educational products in over thirty countries worldwide in more than twelve languages. The plaintiff No. 2, a company based in India, is responsible for the sales, marketing and distribution of goods/services under the trademark/trade name WORLD BOOK. The claim is made by the plaintiffs that they are the largest selling print encyclopaedia in the world and well known in the business of publishing encyclopaedias and other educational reference materials since its adoption in the year 1917. Plaintiffs' WORLD BOOK ENCYCLOPEDIA is considered as number one selling print encyclopaedia in the world.

3.1. In addition to its use as a trademark, the mark WORLD BOOK forms part of the corporate identity and trading style of the plaintiff No. 1 as also of its subsidiaries/affiliate companies throughout the world and their encyclopaedias and other reference materials under the trademark/trade name WORLD BOOK are available in print, software versions as also online and are accessible at worldbookonline.com.

3.2. Plaintiffs have obtained registrations of trademark WORLD BOOK in a number of countries worldwide, covering twenty seven countries. In India, the plaintiffs are the registered proprietor of the trademark WORLD BOOK in respect of a wide variety of goods/services, as detailed in para 5 of the plaint that are valid and subsisting as on date. On the basis of the said registrations, the plaintiffs have the exclusive right to the use of the aforesaid trademarks in India. The products and services of the plaintiffs' under the trademark/trade name WORLD BOOK have been commercially available in India since 1993. They have also been advertising and promoting trademark/trade name WORLD BOOK in various countries including India, through print and electronic media including magazines, television, and the internet. It is averred that the plaintiffs own and have registered over 100 domain names, some of them are mentioned in para 12 of the plaint. Also, there are various third party websites that provide reference to the plaintiffs trademark/trade name WORLD BOOK and its encyclopaedias and other reference materials made available thereunder. The details are mentioned in Para 12 of the plaint.

4. It is averred against the defendant that the defend

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