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IN THE HIGH COURT OF DELHI
V. Kameswar Rao, J.
Delhivery Private Limited - Appellant
Versus
Treasure Vase Ventures Private Limited - Respondent
CS(COMM) 217 of 2020, I.As. 5109 of 2020, 6523 of 2020 and 6572 of 2020
Decided On : 12-10-2020




The court ruled that the trademark 'DELHIVERY' is generic and lacks distinctiveness, thus cannot claim exclusive rights against other descriptively similar marks.

Headnote:(A) Trade Marks Act, 1999 - Sections 2(h), 9, 28, and 29 - Interim injunction - Plaintiff-appellant claimed exclusive rights to the trademark 'DELHIVERY', asserting it is not a generic word but a coined one, while the defendant used 'DELIVER-E', claiming descriptiveness - The plaintiff's mark is deemed generic, and thus cannot be monopolized under trademark law - Interim injunction issued July 3, 2020, vacated due to lack of distinctiveness and misleading representations by the plaintiff. (Paras 55, 60, 64, and 68)

(B) Injunction and Trademarks - The court must not grant an injunction based merely on high sales or extensive use of a mark if the mark is fundamentally generic and does not warrant exclusive rights - Such rights are limited against descriptively similar marks unless distinctiveness is proven. (Paras 68, 75, and 80)

Facts of the case:
The plaintiff, using the trademark 'DELHIVERY' since 2011, argued that it is distinctive and has achieved secondary meaning, while the defendant adopted 'DELIVER-E' in 2020, claiming it has been misrepresented as purposely deceptive. Service of documents was contested but was deemed sufficient by the court. The parties had previously worked together.

Findings of Court:
The court found that the plaintiff's mark 'DELHIVERY' is phonetically and structurally close to the generic term 'delivery', thus it is not entitled to exclusive trademark protection - The interim order was based on misrepresentations of urgency and priority in service of the claims which misled the court.

Issues: The primary issues addressed included whether the use of 'DELIVER-E' infringed upon the plaintiff's trademark rights and the legitimacy of the plaintiff's claims of distinctiveness or secondary meaning.

Ratio Decidendi: A trademark that is found to be generic does not merit exclusive rights regardless of usage or goodwill established through high sales and market presence; the likelihood of consumer confusion is also essential to be asserted convincingly.

Result: The court allowed the defendant's application to vacate the interim injunction.

Table of Content
1. facts regarding the plaintiff's trademark usage and history. (Para 1 , 2 , 3 , 4 , 5 , 6)
2. arguments presented by both parties regarding trademark rights. (Para 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30 , 31 , 32 , 33 , 34 , 35 , 36 , 37 , 38 , 39 , 40 , 41 , 42 , 43 , 44 , 45 , 46 , 47 , 48 , 49 , 50 , 51)
3. court's observations and analysis of trademark validity and usage. (Para 52 , 53 , 54 , 55 , 56 , 57 , 58 , 59 , 60 , 61 , 62 , 63 , 64 , 65 , 66 , 67 , 68 , 69 , 70 , 71 , 72 , 73 , 74 , 75 , 76 , 77 , 78 , 79)
4. conclusion to vacate the interim injunction. (Para 80)

JUDGMENT

V. Kameswar Rao, J.

I.A. 5109/2020 (filed by plaintiff under Order XXXIX Rules 1 and 2 CPC) & I.A. 6523/2020 (by defendant under Order 39 Rule 4 r/w Section 151 CPC to vacate/set aside ex-parte order dated July 03, 2020)

1. By this order I shall decide I.A. 5109/2020 filed by the plaintiff under Order XXXIX Rule 1 & 2 and I.A. 6523/2020 under Order XXXIX Rule 4 (`O39 R4' for short) read with Section 151 of the Code of Civil Procedure, 1908 (`CPC' for short) filed by defendant.

2. The case of the plaintiff in the plaint is that, it has continuously and extensively used the trademark `DELHIVERY' since the year 2011 for its logistics, transportation, management, etc. The mark was coined and adopted by its promoter in the year 2008. The plaintiff has experienced exponential growth since the year 2011 and has completed 600 million orders to around 120 million households with 75 fulfillment centers and secondary hubs and delivers around 1 million packages per day. The sales figures of the plaintiff company had reached approximately Rs.2796.86 Crores for the year ending 2019-2020 with a growth of over Rs.1000 Crores over the sales of the previous year.

3. The plaintiff company has received numerous awards and accreditations and has been time and again receiving foreign funding which has enabled the plaintiff to become a unicorn company and has widespread online and print media presence.

4. It is averred in the plaint that the plaintiff company has 27 registrations for the trademark `DELHIVERY'/its variants in classes 35, 39 & 42 of the TRADE MARKS ACT , 1999 (`TM Act' hereinafter) including a word mark registration of the trademark `DELHIVERY'. Due to incessant use of the mark `DELHIVERY' and its variants openly, continuously and extensively since 2011 throughout the country, the said trademark `DELHIVERY' has come to be associated and identified solely with the plaintiff company and has gained immense popularity amongst the general public in the services of concern. It is stated that due to such incessant use coupled with extensive publicity, the plaintiff's mark `DELHIVERY' has acquired secondary significance, which is evident from the huge annual sales figures.

5. The plaintiff has time and again taken legal action against the infringers of its copyright and trademarks and has secured orders in their favour from this Court as well as other forums, including the NIXI against the use of deceptively similar domain names by third parties.

6. As per the plaint, the plaintiff stated that the cause of action arose for the first time in the third week of May, 2020 when one of the plaintiff's employees noticed the use of the impugned mark on the boxed E-rickshaws at Chhatarpur and Dwarka.

SUBMISSIONS:

7. At the outset, Mr. Neeraj Grover learned counsel for the plaintiff stated that the defendants who prayed for vacation of the interim order took a stand in their O39 R4 application that there was no prior service of suit papers on the defendant, which is a ground to vacate the interim order. In this regard he has stated the following:

a) The Registry of this Court did not require the advance service to be made mandatorily by e-mail and listed the suit only after 3 clear days of the advance service by post, which was sent on two addresses on June 29, 2020 and

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