IN THE HIGH COURT OF DELHI
Rajiv Sahai Endlaw, J.
Steelbird Hi-Tech India Ltd. - Appellant
Versus
Asia Fibre Glass Products - Respondent
CS(COMM) 1366 of 2016
Decided On : 17-02-2020
The judgment reaffirms that registered designs are protected against infringement, allowing plaintiffs to recover damages based on lost profits when infringement occurs.
Headnote:(A) Designs Act, 2000 - Sections 4, 6, and 19 - Infringement of registered design - Plaintiff sought permanent injunction against defendants for infringement of registered design no. 241153, alleging copying of helmet design - Defendants contended registration was illegal and design lacked originality (Paras 1, 4, 5) - The suit was decided in favor of the plaintiff based on ex parte evidence and the absence of rebuttal from the defendants. (Paras 9, 10, 15)
(B) Intellectual Property Rights - The law protects registered designs, and where a plaintiff establishes infringement, damages can be awarded based on lost profits inferred from sales (Paras 11, 14)
(C) Jurisdiction - The defendants' objection regarding the court's jurisdiction and delay was overruled due to their failure to provide evidence against the plaintiff's claims (Paras 9, 15)
Facts of the case:
The plaintiff filed suit against the defendants for using an identical helmet design without authorization, asserting significant sales and reputation tied to their design. The defendant contended that their design was commonplace and denied liability (Paras 1-2).
Findings of Court:
The court ruled in favor of the plaintiff, awarding damages of Rs.96,08,625/- and permanent injunction against the defendants (Paras 15, 16).
Issues: The main issues included the validity of the plaintiff's design registration, the defendants' use of the design, territorial jurisdiction, and claims of delay (Paras 7-8).
Ratio Decidendi: The plaintiff successfully demonstrated ownership of the registered design, that the defendants infringed on this design, and that damages based on lost profits were warranted (Paras 10, 14).
Result: The suit succeeded, granting the plaintiff a permanent injunction and damages of Rs.96,08,625/-.
| Table of Content |
|---|
| 1. plaintiff's claim of design infringement. (Para 1 , 4) |
| 2. framing of issues in the suit. (Para 3 , 7) |
| 3. defendants' contestation of plaintiff's claims. (Para 5) |
| 4. uncontested issues favored plaintiff. (Para 9 , 10) |
| 5. assessment of damages based on evidence. (Para 11 , 12 , 13) |
| 6. conclusion and decree awarded to plaintiff. (Para 15 , 16) |
JUDGMENT
1. The plaintiff instituted this suit against Asia Fibre Glass Products, Ghaziabad and A.S. Aslam (presumably proprietor of Asia Fibre Glass Products), for permanent injunction to restrain infringement by the defendants of the registered design of the plaintiff and passing off by the defendants of their helmet as that of the plaintiff and for ancillary reliefs.
2. The suit along with the application for interim relief came up before this Court first on 30th May, 2013, when though summons/notice thereof were ordered to be issued but no ex parte relief sought granted.
3. Pleadings were completed. Vide order dated 9th September, 2016, in view of Mohan Lal Vs. Sona Paint & Hardwares, AIR 2013 Del 143, option was given to the plaintiff to elect whether wanted to maintain this suit as on the ground of infringement of design or on the ground of passing off. Vide the same order, the application of the plaintiff for interim relief was also dismissed. The plaintiff opted to continue the suit as for infringement of design and vide order dated 5th December, 2016, amendment of the plaint was allowed and the amended plaint taken on record. The defendants though had filed written statement earlier, did not file written statement to the amended plaint and vide order dated 6th December, 2017.
4. The case of the plaintiff as per the amended plaint is, that (i) the defendants were found to be engaged in manufacturing and selling helmets bearing the design identical to the plaintiff's design no.241153; (ii) the subject product of the plaintiff bears novel and distinctive features of shape, configuration and surface pattern; (iii) the registration no.241153 was granted on 1st December, 2011 and subsists; (iv) the shape, configuration and surface pattern of the subject design is distinctive and unique to the plaintiff's helmet; (v) the plaintiff has also obtained registrations of several other designs with respect to designs of helmets, auto accessories etc.; (vi) the plaintiff has been using the helmet under design no.241153 since January, 2012, and has marketed and promoted the said products in India and abroad on a substantial scale; (vii) the plaintiff's product under the subject design has met with substantial success and came to be exclusively identified by members of trade and public in general with the plaintiff and the plaintiff has substantial goodwill and reputation with respect to the subject design; (viii) in the year 2015-16, the plaintiff sold 2,57,139 helmets of the subject design for a total value of Rs.14,01,51,833/-; (ix) the product of the defendants with the design of the plaintiff is known as "Monarch"; and, (x) a bare perusal of the product of the plaintiff with that of the defendants would show blatant copying by the defendants of the plaintiff's design.
5. The defendants contested the suit pleading, that (i) no part of cause of action has accrued within the jurisdiction of this Court; (ii) the registration in favour of the plaintiff is illegal; (iii) the shape of the helmet is commonplace and derived from a combination of known shapes which were pre-existing on the date of registration of design no.241153; (iv) the registration of the design is in contravention of Section 19 read with Sections 4 and 6 of the DESIGNS ACT , 2000; (v) there cannot be any scope of monopoly over the shape of the helmet as there are very limited ways of making helmets and hence the shape of the helmet has no peculiarity or originality; (vi) the plaintiff is guilty of delay and laches; the defendants have been carrying on their business for 7-8 years prior to filing the written s