IN THE HIGH COURT OF DELHI
Navin Chawla, J.
Starbucks Corporation - Appellant
Versus
Lol Café - Respondent
CS(COMM) 452 of 2019 & I.A. 11495 of 2019, 13114 of 2022
Decided On : 17-11-2022
Trade Mark - Infringement and Passing Off - Code of Civil Procedure, 1908 - Order XIII-A - Delhi High Court Intellectual Property Rights Division Rules, 2022
Fact of the Case:
The plaintiff filed a suit seeking a permanent injunction, damages, and delivery of impugned goods, alleging infringement and passing off of their registered trade mark 'FRAPPUCCINO' by the defendants. The defendants were proceeded ex-parte as they did not file their written statements or appear in court.
Finding of the Court:
The court found that the plaintiff, a worldwide reputed company, is the registered proprietor of the mark 'FRAPPUCCINO' and that the defendants' adoption of an identical mark with the prefix 'BROWNIE Chip' was intended to deceive consumers and amounted to infringement and passing off. The court invoked the provisions under Order XIII-A of the CPC and granted a Summary Judgment in favor of the plaintiff.
Issues: Infringement and passing off of the registered trade mark 'FRAPPUCCINO' by the defendants.
Ratio Decidendi: The court held that the plaintiff had proven its right in the mark 'FRAPPUCCINO' and the infringement and passing off by the defendants, and that no genuine issue requiring a trial existed. The court relied on the intent behind incorporating the summary judgment procedure in the Commercial Court Act, 2015 to ensure disposal of commercial disputes in a time-bound manner.
Final Decision: The court decreed the suit in favor of the plaintiff, granting a permanent injunction, damages, and costs.
JUDGMENT
Navin Chawla, J.
1. This suit has been filed by the plaintiff inter-alia praying for a decree of permanent injunction restraining the defendants from infringing and/or passing off the plaintiff's registered trade mark `FRAPPUCCINO' and/or using the `FRAPPUCCINO' mark, including the `BROWNIE Chips FRAPPUCCINO' or any other similar trade mark in relation to their goods and services. The plaintiff also prays for damages; rendition of accounts of profits illegally earned by the defendants; and for an order of delivery and handing over of all the impugned goods, menu cards, and all other goods of any nature bearing and/or containing the impugned mark `FRAPPUCCINO' in any manner whatsoever, to the plaintiff for their destruction.
2. Vide order dated 23.08.2019 of this Court, summons in the Suit were issued to the defendants and an ex-parte ad-interim injunction was granted in favour of the plaintiff, restraining the defendants from using `FRAPPUCCINO' mark in any manner on any of the products sold by them.
3. In spite of service of summons, the defendants chose not to appear or file their written statements and were thus proceeded ex-parte on 28.11.2019. The plaintiff was given time to file its list of witnesses and evidence by way of affidavit.
4. On 26.02.2020, a counsel appeared on behalf of the defendants before the learned Joint Registrar (Judicial), and the learned counsels for the parties submitted that the suit is likely to be settled between the parties and prayed for time for the purpose of compromise.
5. The plaintiff thereafter filed an application, being I.A.13114/2022, under Order XIII-A of the Code of Civil Procedure, 1908 as applicable to commercial disputes of a specified value (in short, `CPC'), praying for a Summary Judgment against the defendants. Notice of this application was issued by this Court on 22.08.2022, granting a period of three weeks to the defendants to file their reply. However, the reply to the aforesaid application was not filed by the defendant nor was the counsel for the defendant present in Court on 01.11.2022.
6. It is the case of the plaintiff that the plaintiff is a company organized and existing under the laws of the State of Washington, the United States of America (in short, `United States'). It is a lifestylebrand company. In the year 1971, its predecessor-in-interest opened its first retail store under the name `Starbucks' in Seattle, Washington, United States, offering a variety of coffee, tea and spices. In 1985, the plaintiff-company was incorporated as `STARBUCKS CORPORATION', and in the year 1987, the plaintiff opened its first retail store in locations outside of Seattle, to other locations within the United States as also in Vancouver, British Columbia, Canada.
7. It is further asserted that the plaintiff, under its registered trade mark `FRAPPUCCINO' and the variations thereof, offers its widely popular hand-crafted blended cold beverages throughout the world. These are also sold in bottled form in many countries in a variety of flavours.
8. The plaintiff has given details of the registration of its `FRAPPUCCINO' mark in paragraph 7 of the plaint and filed documents in support of this claim.
9. It is further asserted that the plaintiff uses its trade mark `FRAPPUCCINO' in 30,626 `Starbucks' stores in 80 countries and territories, as well as a bottled-coffee beverage that is distributed to multiple third-party grocery, retail and wholesale stores globally. The plaintiff develops specific flavors for various countries in which beverages under the `FRAPPUCCINO' mark are available in the `Starbucks' stores. Some flavors are developed for short-term promotions, while some are developed for long-term menu use, such as beverages bearing the mark `FRAPPUCCINO' and in flavours including but not limited to `Banana Java Chip', `Mango-Azuki', `Blackberry Green Tea' in the Philippines, Switzerland, and Australia.
10. The plaintiff has also listed out the details of domain n
The court applied the provisions under Order XIII-A of the CPC and the Delhi High Court Intellectual Property Rights Division Rules, 2022 to grant a Summary Judgment in a commercial dispute involving....
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Trademark infringement, passing off, and copyright violation were established, leading to the grant of a permanent injunction, damages, and costs in favor of the plaintiff.
The court affirmed that prior use of a registered trademark provides substantial grounds for an injunction against similar marks, emphasizing deceptive similarity effects on consumer perception.
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A passing-off action requires proof of goodwill and likely public deception; mere name similarity does not suffice for injunctive relief unless significant evidence is provided.
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