IN THE HIGH COURT OF DELHI AT NEW DELHI
PRATHIBA M. SINGH, J.
Indiyaa Distribution Network Llp - Appellant
Versus
P. Singh & Ors – Respondent
CS(COMM) 366 of 2021 and I.A. 14775 of 2022
Decided on : 25-11-2022
Copyright Act, 1957 - Present suit has been filed by Plaintiff - Distribution Network LLP against four Defendants, being Defendant - Plaintiff seeks permanent injunction, passing off, rendition of account, damages and other reliefs
Finding of the Court: Court is informed that Defendant expresses remorse for conduct that he had exhibited Court, as also, his continuous denials of having supplied infringing products to Defendant submits that he expresses unconditional apology and is also agreeable to suffer a permanent injunction in present suit - Court accepts unconditional apology tendered by him, subject to a deposit with Delhi High Court Legal Services Committee one week - Show cause notice for contempt, issued to Defendant vide order, shall stand discharged, subject to said costs being deposited
Result: Ordered Accordingly
JUDGMENT :
Prathiba M. Singh, J.
1. This hearing has been done through hybrid mode.
2. The present suit has been filed by the Plaintiff - Indiyaa Distribution Network LLP against the four Defendants, being Defendant No.1 - P. Singh, Defendant No.2 - Sanjivan Anusandhan Pvt. Ltd., Defendant No.3 - Harsheen Sales, and Defendant No.4 - India Best Shop. The Plaintiff seeks permanent injunction, passing off, rendition of account, damages and other reliefs.
3. The Plaintiff has been engaged in the manufacture and sale of an Ayurvedic joint pain relief oil since the year 2009, under the mark ‘SAPTARISHI SANDHI SUDHA’. It is claimed that the mark ‘SANDHI SUDHA’, and the house mark ‘SAPTARISHI’, was coined by the Plaintiff in the year 2008. The mark ‘SANDHI SUDHA’ has been in use by the Plaintiff since the year 2009, along with the house mark ‘SAPTARISHI’. The Plaintiff also claims to be the registered proprietor of the copyright in the packaging of the product branded under the mark ‘SAPTARISHI SANDHI SUDHA’. The ‘SANDHI SUDHA’ product of the Plaintiff is stated to have achieved substantial sales and goodwill, and the Plaintiff has a large network of distributors in India for the said product. The sales figures of the ‘SANDHI SUDHA’ product of the Plaintiff, as set out in the Plaint, was more than Rs.1 crore for the financial year 2017-2018. In addition, the advertisement expenses of the Plaintiff in respect of its ‘SANDHI SUDHA’ product, as set out in the Plaint, was over Rs.53 lakhs for the financial year 2017-2018. Extensive publicity has been given to the ‘SANDHI SUDHA’ product on various television channels, as also, through the Plaintiff’s websites, being www.indiyaa.in, www.sandhisudha.com, and www.sandhisudha-plus.com.
4. The packaging of ‘SANDHI SUDHA’ was also registered under the Copyright Act. The Plaintiff has applied for the registration of the mark ‘SANDHI SUDHA’, as also, its variants. The details of the said trademark applications of the Plaintiff have been set out in the Plaint, and are extracted below:
| Application No. | Trademark | Status |
| 2031828 | SANDHI SUDHA | Opposed by third-party Dhanvantri |
| 3090453 | SANDHI SUDHA HAI TO ARAM HAI | Pending |
| 3138171 | SANDHI SUDHA label | Opposed by Defendant no. 1. Evidence not filed despite service of Plaintiffs counter statement on 23 April 2020. Opposed by third-party Dhanvantri. |
| 3138172 | SANDHI SUDHA label | Opposed by Defendant no. 1. Showcause notice by Trademark office to abandon the opposition. Opposed by third-party Dhanvantri. |
| 3928095 | SANDHI SUDHA PLUS | Pending |
| 3928096 | SAPTARISHI SANDHI SUDHA PLUS | Opposed by Defendant No. 1. No evidence filed by Defendant to show any use. |
5. The grievance of the Plaintiff is that, sometime in March, 2021, the Plaintiff acquired knowledge through the e-commerce platform ‘www.snapdeal.com’ that the products under the mark ‘SANDHI SUDHA’ were being suspended from sales on its platform due to some legal issues. It was then that the Plaintiff realized that the Defendants had raised an objection in respect of the Plaintiff’s products being sold on the said e-commerce platform. The Plaintiff made enquiries which revealed that the Defendant No. 1, which was also operating in the name of Defendant No. 4, was engaged in the manufacture of infringing products under the mark ‘SANDHI SUDHA’, and was supplying the same to Defendant No.2. As per the Plaint, the allegations were that the Defendants were jointly and severally engaged in the manufacture and sales of products bearing the mark ‘SANDHI SUDHA’. The competing products of the Plaintiff and the Defendants are depicted below:
6. The present suit was listed for the first time on 9th August, 2021. On the said date, this Court has considered the matter and granted an ex-parte ad interim injunction, in the following terms:
Merely riding on strength of his trade mark registration, is indulging in conduct which is not transparent.
Court emphasizes that prior use and goodwill in trade names give rise to rights that protect against passing off and copyright infringement.
The main legal point established in the judgment is the entitlement of the plaintiff to a permanent injunction for passing off its mark 'SANDHI SUDHA' and the consideration of the defendants' non-rep....
The court affirmed the registered trademark holder's rights against similar marks and clarified standards for proving prior use and confusion under trademark law.
The impugned marks are deceptively similar to Plaintiff's registered marks, leading to public deception, and the Court passes a summary judgment in favor of the Plaintiff.
Point of Law : Section 27 of Trade Marks Act provides that no action for infringement will lie in respect of an unregistered trade mark.
The defendant was entitled to the benefit of defense under Section 35 of the Act as it had been using the mark 'VASUNDHARA' in a bona fide manner since 2001.
Registered trademarks can acquire protective rights against infringement even if they are descriptive when they establish secondary meaning associated with the product.
The court established that the rights of the prior user of a trademark are superior to those of a subsequent user, emphasizing the elements of goodwill, misrepresentation, and damage in passing off c....
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