IN THE HIGH COURT OF DELHI AT NEW DELHI
Amit Bansal, J.
The Indian Hotels Company Limited – Appellant
Versus
Vivanta Hospitality Private Limited – Respondent
CS(COMM) 507 of 2022, I.A. 11684 of 2022 (O-XXXIX R-1 & 2 of CPC)
Decided On : 28-04-2023
Trademark Infringement - Hospitality Services - Trade Marks Act, 1999 - Section 2(1)(zg), Chapter X-A of the Delhi High Court (Original Side) Rules, 2018, Rule 3, Rule 4, Rule 27, Delhi High Court Intellectual Property Rights Division Rules, 2022 - The court found the defendant guilty of trademark infringement and passing off by using the mark 'VIVANTA' in its trade name 'VIVANTA VACATION CLUB' and a deceptively similar domain name. The court decreed the suit in favor of the plaintiff, granting permanent injunction, transfer of the defendant's domain name, and destruction of seized goods bearing the infringing mark.
Fact of the Case:
The plaintiff, a hospitality company, filed a suit seeking permanent injunction against the defendant for infringing its trademark 'VIVANTA'. The defendant, previously named 'VIVANTA HOSPITALITY PRIVATE LIMITED', used the mark 'VIVANTA VACATION CLUB' and a deceptively similar domain name, causing confusion among consumers and diluting the plaintiff's goodwill.
Finding of the Court:
The court found the defendant guilty of trademark infringement and passing off, as it used the plaintiff's mark in its trade name and domain name with the intent to deceive consumers and benefit from the plaintiff's reputation. The court decreed the suit in favor of the plaintiff, granting permanent injunction, transfer of the defendant's domain name, and destruction of seized goods bearing the infringing mark.
Issues: Trademark infringement, passing off, deceptive trade practices, dilution of goodwill, and reputation.
Ratio Decidendi: The defendant's use of the mark 'VIVANTA' in its trade name and domain name amounted to infringement and passing off, causing confusion among consumers and diluting the plaintiff's goodwill. The court applied Chapter X-A of the Delhi High Court (Original Side) Rules, 2018 and the Delhi High Court Intellectual Property Rights Division Rules, 2022 to decide the case by summary judgment.
Final Decision: The court decreed the suit in favor of the plaintiff, granting permanent injunction, transfer of the defendant's domain name, and destruction of seized goods bearing the infringing mark. The defendant was also ordered to pay costs to the plaintiff.
JUDGMENT
Amit Bansal, J. (Oral)--The present suit has been filed seeking the relief of permanent injunction restraining the defendant from infringing the trademark of the plaintiff, passing off and other ancillary relief.
BRIEF FACTS
2. Briefly the case set up by the plaintiff in the plaint is as under:
2.1. The plaintiff, the Indian Hotels Company Limited incorporated on 1st April, 1902 is a part of TATA Group of Companies and offers hospitality services. The plaintiff has a portfolio of 196 hotels including 40 under development globally across 4 continents, 12 countries. The plaintiff opened its first hotel in Mumbai in 1903.
2.2. The plaintiff first coined and adopted the mark VIVANTA for its hotels and other services in the year 2008. The plaintiff has a website at www.vivantahotels.com dedicated to its hotels under the brand name VIVANTA. The plaintiff has 35 VIVANTA hotels across 33 destinations.
2.3. The plaintiff is the registered proprietor of the trademark "VIVANTA" (word/device) in Class 42 and 43, details of which are given in paragraph 14 of the plaint. The earliest registration granted in favour of the plaintiff with respect to the mark "VIVANTA" dates back to the year 2008.
2.4. The plaintiff has given its annual turnover in respect of services rendered under the "VIVANTA" trademark from the financial year 2021-22. The turnover of the plaintiff in the year 2021-22 was Rs.668 crores, whereas the turnover in the financial year 2017-18 was around Rs.896 crores. The plaintiff has also provided the advertising and promotional expenses incurred by plaintiff in respect of the services rendered under the "VIVANTA" trademark. In the financial year 2017-18, the plaintiff spent around Rs.243 crores towards advertisement and promotional expenses.
2.5. It is the plaintiff's case that owing to its long, continuous and consistent usage of the trademark "VIVANTA" since its inception in 2008 and the promotional and advertisement expenses incurred, the trademark "VIVANTA" has acquired secondary significance. It has further acquired the status of a `well known trademark' in terms of Section 2(1)(zg) of the Trade Marks Act, 1999.
2.6. The defendant, Vivanta Hospitality Private Limited offers its services in the hospitality sector and also provides tailor-made and customized holiday packages for its customers.
2.7. On 21st March, 2022, the plaintiff received an email from Mr.Brajesh Sharma, informing them of the infringing activities of the defendant.
2.8. Upon an investigation carried out by the plaintiff's investigator, it came to light that the defendant was initially incorporated on 5th July, 2010 as "R M Y BUILDERS & DEVELOPERS PRIVATE LIMITED" and later on 22nd February, 2021 changed its name to "VIVANTA HOSPITALITY PRIVATE LIMITED". The domain name, www.vivantahospitalitty.com was registered by the defendant on 16th February, 2021. It was further revealed that there are more than 100 consumer complaints made by customers, who were under the impression that the defendant is associated with the plaintiff and were cheated by the defendant. Screenshots of a recent complaint dated 22nd June, 2022 have been given in paragraph 30 of the plaint.
2.9. On 23rd July, 2022, the plaintiff received another email by a customer informing the plaintiff that the defendant is claiming to be associated with the plaintiff and using the name "VIVANTA VACATION CLUB" on its websites, bills and promotional material in the following manner, [IMG], [IMG], [IMG] and [IMG].
2.10. The defendant has listed various properties belonging to the plaintiff on their website, screenshots of which have been given in paragraph 35 of the plaint.
2.11. The plaintiff is aggrieved by the dishonest and infringing use of its registered trademark "VIVANTA" (word/device) by the defendant. It is the plaintiff's case that the services/packages provided by the defendant are bound to cause confusion in the minds of unwary consumers, who may associate the same with the plaintiff
The defendant's use of a deceptively similar trade name and domain name to the plaintiff's trademark constituted trademark infringement and passing off, leading to the court's decision in favor of th....
The use of a registered trademark being identical or deceptively similar in the same service domain constitutes trademark infringement, justifying a permanent injunction.
The plaintiff's rights as the registered proprietor of a well-known trademark were upheld, and the court applied the principles of trademark law to establish infringement and passing off by the defen....
Trademark infringement occurs when identical or confusingly similar marks serve identical services, creating potential consumer confusion.
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.
The court affirmed the validity of the plaintiffs' trademarks 'PENTA' and 'VOLVO PENTA', granting a permanent injunction against the defendants for infringement and passing off, emphasizing the marks....
The court reaffirmed that unauthorized use of a well-known trademark, leading to confusion or dilution, constitutes infringement and unfair competition under trademark law.
Trademark infringement and passing off can be established based on the use of deceptively similar marks and failure to comply with interim injunction orders.
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