SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img



IN THE HIGH COURT OF DELHI
D.N. Patel, Prateek Jalan, JJ.
Satnarain Sharma - Appellant
Versus
Union of India - Respondent
W.P.(C) 7537 of 2020
Decided On : 12-10-2020




Generic terms cannot be protected as trademarks; merely modifying a descriptive term does not grant exclusive rights to its use, ensuring that such words remain available for all to use.

Headnote:(A) Trade Marks Act, 1999 - Section 28 - Interim injunction against the use of trademark - The plaintiff claims exclusive rights over the trademark 'DELHIVERY', asserting it is distinctive and has gained secondary significance since 2011; however, the court finds no deceptive similarity with the defendant's mark 'DELIVER-E' and concludes the latter, being descriptive, cannot infringe upon the former. (Paras 60-66, 79)

(B) Ex-parte orders - The defendant argues non-service of suit papers on email violated procedural requirements, but the court determines that the method of service was adequate under the existing court procedures. (Paras 24-30)

(C) Descriptive marks - The court confirms that generic or merely descriptive marks cannot acquire exclusivity and thus, cannot bar other traders from using similar terms in the course of business. (Paras 73-76)

Judgement Key Points

Based on the provided legal document, the key points are as follows:

  1. The court clarified that generic or merely descriptive terms cannot be exclusively protected as trademarks. Modifying a descriptive term does not grant exclusive rights, ensuring such words remain available for use by all [judgement_subject].

  2. The plaintiff claims exclusive rights over the trademark "DELHIVERY," asserting it has gained secondary significance through continuous and extensive use since 2011, and that it is distinctive. The court, however, found no deceptive similarity between "DELHIVERY" and the defendant's "DELIVER-E," and noted that descriptive marks cannot be monopolized [Paras 60-66].

  3. The court recognized that registration of a mark is prima facie evidence of its validity, but the rights conferred are not absolute and are subject to exceptions, especially if the mark is descriptive or generic (!) (!) .

  4. It was established that the mark "DELHIVERY" is a combination of two words "DELHI" and "VERY," which the court considered a coined and distinctive mark, not a generic word. Nevertheless, the court also observed that the underlying word "delivery" is a common dictionary term and cannot be monopolized if used in a descriptive or generic sense (!) (!) .

  5. The defendant's mark "DELIVER-E" is based on the dictionary word "deliver" with a suffix "E," and the court noted that both marks are phonetically similar as they are essentially the same generic word "delivery," which cannot be exclusively owned. The court emphasized that a generic word cannot be appropriated by one party to the exclusion of others (!) (!) .

  6. The court highlighted that the plaintiff’s extensive use and high sales figures do not automatically establish secondary meaning or distinctiveness, especially when the mark is inherently descriptive or generic. Evidence of public perception and recognition is necessary to prove secondary meaning (!) (!) .

  7. The court pointed out that many third-party marks containing the word "delivery" are in use, indicating that such a term remains open for use and does not confer exclusive rights. The existence of numerous similar marks suggests coexistence without confusion, especially among well-informed corporate clients (!) (!) (!) .

  8. The court addressed the issue of deceptive similarity, stating that the comparison must consider visual, phonetic, and conceptual similarities from the perspective of an average consumer. It concluded that the marks "DELHIVERY" and "DELIVER-E" are not deceptively similar, given their dissimilar pronunciation, meaning, and structure (!) (!) .

  9. The court found that the defendant's use of "SMART-E" and subsequent adoption of "DELIVER-E" was in the context of honest business expansion, and there was no evidence of mala fide intent. The defendant's use was considered bona fide, and the marks' structural differences further reduced likelihood of confusion (!) (!) (!) .

  10. The issue of non-service of the plaint on email was examined, and the court concluded that service by speed post was sufficient and that there was no intentional attempt to avoid service to gain an unfair advantage. Consequently, the interim order was not liable to be vacated on this ground (!) (!) (!) .

  11. The court emphasized that the mark "DELHIVERY" is a phonetic and visual variant of a generic word "delivery," which cannot be monopolized, and that the registration of such a mark does not prevent others from using the word in a descriptive or generic sense (!) (!) (!) .

  12. The court rejected the plaintiff's claim of secondary meaning based solely on sales figures and promotional efforts, requiring more concrete evidence of public perception and association with the plaintiff’s goods or services (!) (!) .

  13. The court dismissed the plaintiff’s plea for an injunction, ruling that the marks are not deceptively similar and that the defendant's use does not amount to infringement or passing off, especially considering the commonality of the descriptive term "delivery" in the trade (!) (!) .

  14. Overall, the court held that the plaintiff's mark "DELHIVERY" is a phonetically generic term that cannot be exclusively monopolized, and that the defendant's "DELIVER-E" is not deceptively similar or infringing. The defendant's use was deemed honest, and the numerous third-party uses of "delivery" reinforce the conclusion that such terms remain in the public domain for all traders (!) (!) .

  15. The interim relief granted earlier was vacated, and the suit was dismissed, with the court noting that the case lacked sufficient evidence to establish infringement, passing off, or secondary meaning. The court also emphasized that the absence of proof of actual confusion or damage diminishes the likelihood of successful infringement claims involving generic or descriptive terms (!) .

These points summarize the court's reasoning regarding trademark protection for generic and descriptive marks, the importance of public perception, and the structural differences between the marks involved.


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 such receipts were attached with paper-book. Therefore, the fact that no email could be sent to the defendant for advance service cannot be taken as a ground for seeking vacation of the injunction orders as there was no mala fide in not sending the papers by e-mail.

b) The defendant was not on caveat under Section 148A CPC and did not have an inherent right to be heard in advance at the stage of hearing of the interim application.

c) The CPC, TM Act, Commercial Courts Act, 2015, Delhi High Court (Original Side) Rules 2018, or even the Delhi High Court Video Conferencing Rules, 2020 do not mandate that a plaintiff in a commercial suit cannot seek ad-interim ex-par

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

AI

SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top