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2023 Supreme(Del) 5997

IN THE HIGH COURT OF DELHI AT NEW DELHI
Prathiba M. Singh, J.
Burger King Company Llc - Appellant
Versus
Virendra Kumar Gupta & Anr. - Respondents
C.O. (COMM.IPD-TM) 686 of 2022 & I.A. 10228 of 2022 with CS(COMM) 229 of 2018, I.As. 16492 of 2019 & 10536 of 2022
Decided On : 29-11-2023

Advocates appeared:
Mr. Raunaq Kamath, Mr. Aditya Gupta, Mr. Mukul Kochhar and Mr. Rahul Bajaj, Advocates, for the Petitioner.
Mr. Shailen Bhatia & Mr Raghav Bhalla, Advocates, for the Respondent.
Mr. Harish Vaidyanathan Shankar, CGSC, with Mr. Srish Kumar Mishra, Mr. Alexander Mathai Paikaday and Mr. Krishnan V. Advocates, for the Respondent.

IMPORTANT POINT
The central legal point established in the judgment is the recognition of the mark 'BURGER KING' as a well-known mark under the Trade Marks Act, 1999, and the distinctiveness of trade marks.

Headnote:

Trade Marks - Cancellation Petitions and Suit - Trade Marks Act, 1999, Section 57, Section 134 - The judgment discusses the well-known status of the mark 'BURGER KING' under Section 2(1)(zg) of the Trade Marks Act, 1999, and the distinctiveness of trade marks. It also addresses the validity of the Plaintiff's marks 'BURGER KING' and the settlement between the parties regarding the use of marks 'BURGER KING' and 'BURGER EMPEROR'.

Fact of the Case:

The Plaintiff, Burger King Company LLC, filed cancellation petitions under Section 57 of the Trade Marks Act, 1999 and a suit under Section 134 of the Trade Marks Act, 1999 against the Defendants for using the mark 'BURGER KING' and 'Burger King Family Restaurant'. The Plaintiff also sought a declaration of the mark 'BURGER KING' as a well-known mark.

Finding of the Court:

The Court found that the mark 'BURGER KING' had acquired a secondary meaning and deserved to be protected. The Defendants were restrained from using the mark 'BURGER KING' and the infringing logo, but were permitted to use the mark 'BURGER EMPEROR'. The Court also rejected the Defendants' plea that the mark 'BURGER KING' was generic and common to trade.

Issues: The issues included the well-known status of the mark 'BURGER KING', the distinctiveness of trade marks, and the validity of the Plaintiff's marks. The settlement between the parties regarding the use of marks 'BURGER KING' and 'BURGER EMPEROR' was also a key issue.

Ratio Decidendi: The Court's decision was influenced by the recognition of the mark 'BURGER KING' as a well-known mark, the distinctiveness of trade marks, and the estoppel of the Defendants from claiming that the mark 'BURGER KING' was generic. The settlement between the parties also played a significant role in the Court's decision.

Final Decision: The Court decreed the suit in favor of the Plaintiff, declared the mark 'BURGER KING' as a well-known mark, and approved the settlement between the parties regarding the use of marks 'BURGER KING' and 'BURGER EMPEROR'. The cancellation petitions were dismissed as withdrawn.

JUDGMENT

Prathiba M. Singh, J. (Oral) - This hearing has been done through hybrid mode.

2. These are three cancellation petitions under Section 57 of the Trade Marks Act, 1999 and a suit under Section 134 of the Trade Marks Act, 1999 filed by Burger King Company LLC against Defendant No.1-Ms. Ranjana Gupta, Defendant No.2-Mr. Virendra Kumar Gupta and Defendant No. 3-M/s Burger King (hereinafter, `the Defendants'). The Defendants were operating under the name and trading style of "Burger King Family Restaurant". The litigation between the parties has a long and checkered history.

3. In addition to the relief of permanent injunction against the Defendants, in CS(COMM) 229/2018, Burger King Company LLC also prays for declaration of the mark `BURGER KING' as a well-known mark under Section 2(1)(zg) of the Trade Marks Act, 1999, as per paragraph 38 (e) of the prayer clause in the plaint.

Declaration as a `Well-Known' Mark

4. The Plaintiff-Burger King Company LLC is the proprietor of the mark `BURGER KING', which it had adopted in the year 1954, and has expanded over the years to more than 100 countries. The Plaintiff avers that it owns over 4000 trade mark and service mark applications across the world. The Plaintiff first became the registered proprietor of the mark `BURGER KING' in India in the year 1989. The sales of the Plaintiff for the mark `BURGER KING' worldwide is stated to be more than 23,000 million dollars and a substantial amount of 960 million dollars has also been invested for promotional and advertising purposes.

5. The Plaintiff claims to operate more than 400 `BURGER KING' outlets in India. It is stated that the Plaintiff has a chain of 13,000 fast foods restraunts in around 92 countries. It operates its business through the domain name www.bk.com and www.burgerking.com, holding registrations since the year 1994. It claims to have 350 domain name registrations in its name for different regions. The registered trade marks of the Plaintiff for the mark `BURGER KING' in India are set out below:

6. It is further averred that the Plaintiff's rights in the `BURGER KING' mark have been recognized through various suits i.e., CS (COMM) 303/2022 titled `Burger King Corporation v. Swapnil', CS (COMM) 1662/2016 titled Burger King Corporation v. Michel David & Ors., CS (COMM) 1654/2016 titled Burger King Corporation v. Ali Akbar & Ors., etc.

7. Reliance is placed upon Hermes International v. Crimzon Fashion Accessories Pvt. Ltd., [2023 SCC OnLine 883], wherein the factors outlined by the Co-ordinate Bench under Section 11(6) of the Trade Marks Act, 1999, would be relevant for declaring the mark as well-known, are as follows:

    "(i) The knowledge or recognition of that trademark in the relevant section of the public, including knowledge in India obtained as a result of promotion of the trademark.

    (ii) The duration, extent, and geographical area of any use of that trademark.

    (iii) The duration, extent, and geographical area of any promotion of the trademark, including advertising or publicity and presentation, at fairs or exhibition of the goods or services to which the trademark applies.

    (iv) The duration and geographical area of any registration of, or any application for registration of that trademark under the Trademarks Act to the extent that they reflect the use or recognition of the trademark.

    (v) The record of successful enforcement of the rights in that trade mark, in particular the extent to which the trade mark has been recognised as a well-known trade mark by any court or Registrar under that record."

8. Further, this Court in Disruptive Health Solutions v. Registrar of Trade Marks, [C.A. (COMM.IPD-TM)] 133/2022, decision dated 8th July 2022] discussed test of distinctiveness of trade marks. The relevant extract of the said decision is as follows:

    "10. The general rule regarding distinctiveness is that a mark is capable of being protected if either it is inherently distinctive or has acquired distinctiveness through secondary meaning

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