IN THE HIGH COURT OF DELHI AT NEW DELHI
Amit Bansal, J.
Alpha Corp Development Private Limited - Petitioner
Versus
Alpha Integrated Management Services Pvt. Ltd. And Anr. – Respondents
C.O. (COMM.IPD-TM) 393 of 2022
Decided On : 17-03-2023
Trademark - Real Estate Services - Sections 57, 125 of the Trademarks Act, 1999 - The court discussed the provisions of Sections 11(1), 12, 18(1), 11(4), 11(3)(a) of the Trademarks Act, 1999 and their interpretations in relation to the registration and removal of the impugned trademark.
Fact of the Case:
The petitioner sought cancellation/removal of a trademark registered by the respondent in respect of real estate services, claiming that it was deceptively similar to their own mark ALPHA.
Finding of the Court:
The court found that the respondent's trademark was deceptively similar to the petitioner's mark, adopted dishonestly, and aimed to trade upon the established goodwill of the petitioner. The court allowed the petition and removed the impugned trademark from the Register of Trade Marks.
Issues: The issues involved the similarity of trademarks, dishonest adoption, proprietorship, prior user rights, and the potential for confusion in the market.
Ratio Decidendi: The court's decision was based on the contravention of various sections of the Trademarks Act, 1999, including Sections 11(1), 12, 18(1), 11(4), and 11(3)(a), and the dishonest intention of the respondent in adopting the impugned trademark.
Final Decision: The impugned trademark registered under trademark application no. 3187803 in the name of the respondent no.1 in Class 36 was removed from the Register of Trade Marks.
JUDGMENT :
Amit Bansal, J.
1. The present rectification petition has been filed on behalf of the petitioner seeking cancellation/removal of the trademark bearing registration number 3187803 and registered in the name of respondent no.1 in respect of real estate services in Class 36 under Sections 57 and 125 of the Trademarks Act, 1999 (hereinafter ‘Act’).
Case set up by the petitioner
2. The case set up by the petitioner in the petition is as follows:
2.1 The petitioner, Alpha Corp Development Private Limited, is engaged in the business of real estate development including development of malls, hotels, townships, multiplexes and complexes and provides facility management services such as maintenance, building automation, security services among others, since 2003.
2.2 The petitioner is the registered proprietor of the mark ALPHA through its predecessor-in-interest, M/s Grandeur Estates Private Limited, bearing registration no. 1483826 and 1483827 in Classes 36 and 37 of the Act. Several other registrations have also been obtained by the petitioner in respect of the mark ALPHA and its formative marks. The earliest registration was granted on 1st September, 2006.
2.3 The petitioner has successfully delivered several real estate projects under the mark ALPHA, such as Alpha International City, Karnal (Haryana), Alpha International City, Fatehabad (Haryana), GurgaonOne-84 among others.
2.4 The petitioner has also won several real estate awards and accolades over the years. Due to long and extensive use of the mark ALPHA, the petitioner has acquired vast goodwill and reputation. The annual sales of the petitioner in the year 2018 amounted to Rs. 988,145,000/- and the petitioner has also incurred expenditure of Rs.6,241,000/- towards advertisement and promotions in the said year.
2.5 The respondent no.1 has obtained registration of the mark (hereinafter ‘impugned mark’) in respect of similar services as that of the petitioner, in the name of the respondent no.1 under application no. 3187803 in Class 36 of the Act. The letter 'A' and the word ALPHA in the impugned mark are written in black colour, which shows the intention of the respondent no. 1 to give prominence to the mark ALPHA in the impugned mark. The colour scheme adopted by the respondent no.1 for the impugned mark is also similar to that of the petitioner’s ALPHA marks.
2.6 The malafides of the respondent no.1 is evident from the fact that the respondent no.1 company was incorporated by the ex-employees of the petitioner and its subsidiary company, Alpha G: Corp Management Services Pvt. Ltd., on 23rd July, 2015, which is prior to the date of resignation of the said employees. The said employees had complete access to the records and data of the petitioner and its subsidiary company.
2.7 Public caution notices were published by the petitioner's subsidiary company in various newspapers when it came to know that its ex-employees had incorporated a new company with confusingly similar name for providing identical services of facility management. Thereafter, the respondent no.1 filed a defamation complaint before Tis Hazari Courts, New Delhi. Against the summoning order dated 14th May, 2016 passed in the aforementioned defamation complaint, the petitioner filed a CRL.M.C. No.297/2017 before this Court, which is pending adjudication.
2.8 The petitioner filed an application being SRN G43969063 dated 6th February, 2017 before Ministry of Corporate Affairs (MCA) under Section 16 of the Companies Act, 2013 seeking a direction to the respondent no. 1 to rectify its deceptively similar/identical trade name. The Regional Director, MCA held that the trade name of the respondent no.1 closely resembles the name of the subsidiary company of the petitioner and directed them to change the name of their company vide order dated 1st August, 2017.
2.9 The impugned mark was published in the Trade Mark Journal on 18th September, 2017. However, the respondent no. 1 concealed the factum of passing of the aforemen
The central legal point established in the judgment is the application and interpretation of various provisions of the Trademarks Act, 1999 in determining the similarity of trademarks, dishonest adop....
The central legal point established in the judgment is the likelihood of confusion and deception of consumers due to the adoption of a deceptively similar trademark, leading to the cancellation of th....
The central legal point established is the cancellation of a trade mark registration based on deceptive similarity and the well-known trade mark status of the petitioner's mark.
The central legal point established in the judgment is the application of Section 11(1)(b) of the Trademarks Act to determine the likelihood of confusion based on phonetic similarity and the priority....
The registration of a trade mark that is identical or similar to an existing mark is liable to be cancelled if it is likely to cause confusion among consumers.
In a case where issue of invalidity is raised or arises independent of a suit, prescribed statutory authority will be sole authority to deal with matter.
Trademark registrations must be based on bona fide use; deceptive similarity can lead to cancellation of marks.
A trademark rectification petition is not maintainable if the validity is contested in a prior ongoing suit, as per the Trade Marks Act, 1999.
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