IN THE HIGH COURT OF DELHI AT NEW DELHI
Sanjeev Narula, J.
Ralson (india) Ltd. – Appellant
Versus
Sh. Raj Chauhan Trading As M/s Rishi Udyog – Respondent
CS(COMM) 343 of 2020 & I.A. 7388 of 2020
Decided On : 29-05-2023
Trademark Infringement - RALSON - Registration No. 209797 in Class 12 - Plaintiff proved infringement of their trademark, entitled to permanent injunction - Plaintiff's claim for damages not validated due to lack of specific evidence
Fact of the Case:
Plaintiff sued Defendant for trademark infringement, claiming that Defendant's mark 'RACSON' is deceptively similar to Plaintiff's registered trademark 'RALSON' used for bicycles and components. Defendant failed to appear in court, leading to deemed admission of Plaintiff's claims. Plaintiff provided evidence of trademark registrations, artistic works, and usage of the mark, proving infringement. However, Plaintiff's claim for damages lacked specificity and evidence of Defendant's unlawful gain.
Finding of the Court:
The Court found in favor of the Plaintiff, granting a permanent injunction against Defendant's use of the 'RACSON' mark. However, the Court did not validate Plaintiff's claim for damages due to lack of specific evidence and proof of Defendant's unlawful gain.
Issues: Trademark infringement, validity of Plaintiff's trademark registrations, claim for damages
Ratio Decidendi: The Court's decision was based on the deemed admission of Plaintiff's claims due to Defendant's failure to appear, and the evidence provided by Plaintiff proving infringement of their trademark. However, the lack of specific evidence and proof of Defendant's unlawful gain led to the Court's decision to not validate Plaintiff's claim for damages.
Final Decision: The suit was decreed in favor of the Plaintiff, granting a permanent injunction against Defendant's use of the 'RACSON' mark. However, Plaintiff's claim for damages was not validated. Plaintiff was awarded costs of Rs.5 lakhs, recoverable from Defendant.
JUDGMENT
Sanjeev Narula, J. (Oral)--Ralson (India) Limited, hereinafter referred to as the Plaintiff, has instituted this lawsuit with the objective of safeguarding their registered trademark, 'RALSON', [hereinafter referred to as the "Plaintiff's Mark"], by preventing Defendant from utilizing the closely resembling mark 'RACSON' [hereinafter referred to as the "Impugned Mark"]. Plaintiff asserts that the disputed mark either mirrors or is deceptively similar to their registered trademark. Both these trademarks are connected with identical categories of goods, particularly, bicycles and their various components, including tyres and tubes.
PLAINTIFF'S CASE
2. Plaintiff's predecessor, M/s Ralson Industries, registered the trademark 'RALSON', under Registration No. 209797 in Class 12 on 03rd July, 1962. This mark, utilized by Plaintiff for tyres, tubes, cycle parts, and accessories for rickshaws and auto vehicles since 1974 (and its predecessor since 1956), is incorporated in Plaintiff's corporate name, as also was in its predecessor's trading name. Plaintiff has obtained several registrations of the trademark 'RALSON' and its formative marks/variations across multiple classes, as detailed in paragraph 5 of the plaint. Additionally, Plaintiff holds copyright registrations of artistic works composed of the word 'RALSON', as outlined in paragraph 7 of the plaint.
3. The goods bearing Plaintiff's mark are widely marketed and sold in India and exported to various countries, as depicted in paragraph 14 of the plaint. These goods have also been showcased at international exhibitions in China, Italy, USA, and elsewhere around the world. The 'RALSON' mark, a coined term, has been used continuously and without interruption by Plaintiff for several years, accumulating significant goodwill and reputation. Sales figures and advertisement expenses associated with the mark over the years are disclosed in paragraphs 10 and 11 of the plaint, respectively. Plaintiff has also undertaken multiple legal actions to protect their trademark rights in the said mark, as detailed in paragraphs 20 to 25 of the plaint.
4. Defendant, trading under the name M/s Rishi Udyog, operates from Ludhiana, Punjab - the same city housing the Plaintiff's manufacturing facility. In February 2020, Plaintiff discovered the advertisement for Defendant's trademark application for registration of the term 'RACSON' under Application No. 3239598, in Class 12, dated 19th April, 2016. The application pertained to "Bicycles and Parts thereof including Tyres and Tubes", with Defendant claiming usage of the mark since 01st April, 1994. Plaintiff lodged an opposition to this application, which is currently pending.
5. Defendant's usage of the Impugned Mark, which bears an identical or deceptively similar resemblance to Plaintiff's mark and is associated with the same category of goods, is likely to induce confusion and mislead consumers. It infringes upon Plaintiff's statutory and common law rights in their trademark, `RALSON.'
PROCEEDINGS TO DATE
6. A prima facie case was identified in favour of Plaintiff, leading to an ex-parte ad interim injunction being granted on 27th August 2020, preventing Defendant from using the Impugned Mark. Despite the service of summons, Defendant failed to appear. Consequently, on 14th October 2020, the interim injunction was rendered absolute, and proceedings continued in Defendant's absence. Defendant has not filed written statement to the plaint and the time period to file the same, has now elapsed. There is, thus, no contest to the present suit.
7. Plaintiff produced oral evidence by recording the testimonies of Mr. Sanjeev Malhotra (PW1) and Mr. Hansraj Mehta (PW2), through affidavits and statements recorded on 16th December, 2022.
ANALYSIS
8. Defendant consciously chose not to appear before this Court and did not submit a defence in the form of a written statement within the statutory timeframe and as a result, his right to do so stood extingui
The main legal point established in the judgment is the requirement for specific evidence and proof of unlawful gain to validate a claim for damages in a trademark infringement case.
Deceptive similarity of trademarks and trade dress can constitute trademark infringement and passing off.
The main legal point established in the judgment is the requirement for the plaintiff to prove deceptive similarity and financial benefit in trademark infringement cases.
The central legal point established is the application of Section 11(1)(b) of the Trade Marks Act, which disentitles the registration of a mark if it is deceptively similar to an existing registered ....
Where a trade mark contains generic or common-to-trade terms, the proprietor cannot claim exclusive rights over those specific words. Comparison of marks for infringement must be done as a whole; if ....
The judgment establishes the principle that phonetic similarity between trademarks can constitute infringement, and lack of a credible defense can lead to summary judgment in trademark cases.
Infringing activities and lack of defense by the Defendant can lead to the award of damages and costs in favor of the Plaintiff.
The main legal point established in the judgment is the requirement to establish a prima facie case for grant of injunction in cases of trademark infringement, based on the essential features of trad....
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