IN THE HIGH COURT OF DELHI AT NEW DELHI
Amit Bansal, J.
Hero Motocorp Limited – Appellant
Versus
Shree Amba Industries – Respondent
CS(COMM) 1078 of 2018 & I.A. 11007 of 2018 (O-XXVI R-9 of CPC)
Decided On : 16-08-2023
DESIGNS ACT, 2000 - INFRINGEMENT - FRONT FENDER OF MOTORCYCLE - REGISTRATION OF DESIGN - VALIDITY - NOVELTY - ORIGINALITY - FUNCTIONALITY - ARTICLE - SPARE PART - INJUNCTION - BALANCE OF CONVENIENCE - IRREPARABLE HARM - INTERIM RELIEF - DISMISSED.
Fact of the Case:
Plaintiff, a motorcycle manufacturer, filed a suit against the defendant for infringement of the registered design of the front fender of its motorcycle. The plaintiff alleged that the defendant's front fender was an exact replica of its own and sought an injunction to restrain the defendant from manufacturing and selling the infringing product.
Finding of the Court:
The Court held that the plaintiff's design was not new or original as it had been published prior to the date of registration. The Court also held that the front fender was not an article capable of being registered under the Designs Act, 2000, as it was a spare part that did not have an independent life as an article of commerce. The Court further held that the balance of convenience was in favor of the defendant and that the plaintiff would not suffer irreparable harm if the injunction was not granted.
Issues: 1. Whether the plaintiff's design was new and original? 2. Whether the front fender was an article capable of being registered under the Designs Act, 2000? 3. Whether the balance of convenience was in favor of the plaintiff or the defendant? 4. Whether the plaintiff would suffer irreparable harm if the injunction was not granted?
Ratio Decidendi: 1. The Court held that the plaintiff's design was not new or original as it had been published prior to the date of registration. The Court relied on the judgments in Bharat Glass Tube Limited v. Gopal Glass Works Limited and Steelbird Hi-Tech India Ltd. v. S.P.S. Gambhir And Ors. to hold that a design is not new or original if it has been published or made known to the public before the date of registration. 2. The Court held that the front fender was not an article capable of being registered under the Designs Act, 2000, as it was a spare part that did not have an independent life as an article of commerce. The Court relied on the judgments in Ford Motor Company, [1993] R.P.C. 399, and Bayerische Motoren Werke Aktiengesellschaft v. Grandmark International (PTY) LTD. to hold that a spare part is not an article capable of being registered under the Designs Act unless it has an independent life as an article of commerce. 3. The Court held that the balance of convenience was in favor of the defendant and that the plaintiff would not suffer irreparable harm if the injunction was not granted. The Court noted that the defendant was selling its front fender under a different brand name and that consumers could make an informed decision about which product to purchase.
Final Decision: The Court dismissed the plaintiff's application for an interim injunction.
JUDGMENT
Amit Bansal, J.
I.A. 11006/2018 (O-XXXIX R-1 & 2 of the CPC)
1. By way of the present judgment, I shall decide the captioned application filed on behalf of the plaintiff company under Order XXXIX Rules 1 and 2 of the Code of Civil Procedure, 1908 (CPC).
2. The present suit has been filed seeking relief of permanent injunction restraining the defendant from infringing the registered design of the plaintiff company along with other ancillary reliefs.
3. Reply to the interim application was filed on behalf of the defendant on 28th August, 2018 and the rejoinder thereto has also been filed by the plaintiff company.
4. On 30th January, 2023, I.A.2211/2023 under Order VI Rule 17 of the CPC was also moved on behalf of the defendant for amendment of the written statement. The said amendment was sought in order to incorporate an objection based in law relating to the suit design not being registrable under the Designs Act, 2000 (hereinafter `Designs Act'). While keeping open the right of the plaintiff company to raise objections to the amendment sought by the defendant, vide order dated 1st March, 2023, I.A.2211/2023 was allowed.
5. Arguments were heard on 17th January, 2023, 6th February, 2023, 27th February, 2023, 1st March, 2023, 15th March, 2023 and 23rd March, 2023, when the judgment was reserved in the captioned application. Subsequently, written submissions have also been filed on behalf of the parties.
CASE SET UP IN THE PLAINT
6. The case set up by the plaintiff company in the plaint is as follows:
6.1. The plaintiff company is part of the "Hero Group" and is engaged in the business of manufacturing and selling of automobiles, spare parts, fittings and accessories thereof.
6.2. One of the motorcycle models being sold by the plaintiff company is the "HERO HF DELUXE" motorcycle. The plaintiff company also sells front fenders for the said motorcycle model. The design of the front fender of the plaintiff company is a registered design bearing Registration No.271199 registered on 7th April, 2015.
6.3. In the registered design of the plaintiff company's front fender, the surface of the front section is elevated, forming a "V" shape design and has slightly elongated sides, which give a distinct and aesthetic look to the fender.
6.4. Sales figures of the plaintiff company pertaining to the "HF DELUXE" motorcycles with the suit fender as well as the sales figures from the independent sale of the suit fender from the year 2015-2016 to 2018- 2019 are provided in paragraph 12 of the plaint. The plaintiff company has also provided their advertisement and publicity expenses in paragraph 13 of the plaint.
6.5. In June 2018, the plaintiff company became aware of a front fender similar to their own, being manufactured by the defendant and sold in the market. Upon examination, the plaintiff company discovered the front fender of the defendant sold as "HF DLX TYPE" to be a copy of the registered design of the plaintiff company.
6.6. The "HF DLX TYPE" front fender of the defendant clearly refers to the plaintiff company's motorcycle sold under the name "HERO HF DELUXE", on which motorcycle such front fender can be set.
6.7. The defendant's replication of the registered design of the front fender of the plaintiff company is an act of piracy of the registered Design No.271199 of the plaintiff company.
6.8. The replication and infringement of the registered design of the plaintiff company by the defendant is dishonest and mala fide. The similarities between the two products are so close and exact that the adoption by the defendant of its front fender design is, without a doubt, fraudulent and tainted with dishonesty.
6.9. Due to continuous and extensive use and publicity of the suit design, the plaintiff company has acquired immense goodwill and reputation and the design of the front fender has come to be exclusively associated with the plaintiff company by the members of the public and the trade. Thus, the design has become a source i
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