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IN THE HIGH COURT OF DELHI
Sanjeev Narula, J.
Indiyaa Distribution Network LLP - Appellant
Versus
P. Singh - Respondent
CS(COMM) 366 of 2021
Decided On : 09-08-2021




Prior use of trademarks and established sales figures can justify injunctive relief to prevent consumer confusion and protect intellectual property rights.

Headnote:(A) Trade Marks Act - Section 28, Order XXXIX Rules 1 & 2, Section 151 CPC - Injunctive relief - Plaintiff claims exclusive rights over the trade marks 'SANDHI SUDHA' and 'SANDHI SUDHA PLUS' based on prior use and substantial sales figures - Court acknowledges that a prima facie case has been established and that the balance of convenience lies with the Plaintiff to avoid consumer confusion - Defendants are restrained from using similar trademarks or packaging that could lead to passing off and copyright infringement. (Paras 10, 12, 15, 16, 17)

(B) Intellectual Property Rights - Protection of trademarks based on prior use and extensive advertising is affirmed - The court emphasizes the importance of safeguarding against confusion and deception in the market. (Paras 10, 16, 17)

Facts of the case:
The Plaintiff, having adopted and used the trademark 'SANDHI SUDHA' since 2008, alleges that the Defendant's similar mark infringes on its intellectual property rights, leading to the suspension of its product accounts on popular platforms. Plaintiff possesses significant sales and has already received copyright registration for its product packaging. (Paras 10, 11)

Findings of Court:
The court finds that a prima facie case exists supporting the Plaintiff's claim over the trademarks in question and that irreparable harm may occur without an interim injunction. (Paras 16, 17)

Issues: The primary issue is whether the Plaintiff's rights were violated by the Defendant's use of a deceptively similar mark and packaging amounting to passing off and copyright infringement. (Paras 10, 12, 15)

Ratio Decidendi: The court reiterates the principle that the prior use of a trademark and demonstrable confusion in the marketplace justifies the granting of injunctive relief. The Defendants' actions were deemed to infringe upon the Plaintiff's intellectual property rights, necessitating an injunction to preserve market integrity. (Paras 16, 17)

Result: Defendants are restrained from using the contested trademarks and packaging.

Table of Content
1. application for document exemption allowed. (Para 1 , 2 , 3)
2. plaintiff claims trademark and copyright violation. (Para 4 , 10 , 11 , 12 , 13 , 15)
3. urgency for injunctive relief due to potential harm. (Para 9 , 14 , 16)
4. defendants restrained from using similar trademarks. (Para 17)
5. next steps scheduled for hearing. (Para 18 , 19 , 20)

ORDER

[VIA VIDEO CONFERENCING]

I.A. 9883/2021 (application for exemption from filing dim, illegible, handwritten, vernacular language documents with clearer copies)

1. Allowed, subject to just exceptions.

2. The Plaintiff shall file clearer copies of dim, illegible, handwritten, and English translation of documents in vernacular language, at least one week prior to the next date of hearing.

3. The application stands disposed of.

CS(COMM) 366/2021

4. Let the plaint be registered as a suit.

5. Upon filing of process fee, issue summons to the Defendants by all permissible modes. Summons shall state that the written statements shall be filed by the Defendants within 30 days from the date of receipt of summons. Along with the written statements, the Defendants shall also file an affidavit of admission/denial of the documents of the Plaintiff, without which the written statement shall not be taken on record.

6. Liberty is given to the Plaintiff to file replications within 15 days of the receipt of the written statements. Along with the replications, if any, filed by the Plaintiff, affidavits of admission/denial of documents of the Defendants, be filed by the Plaintiff, without which the replications shall not be taken on record. If any of the parties wish to seek inspection of any documents, the same shall be sought and given within the timelines.

7. List before the Joint Registrar for marking of exhibits on 10th November, 2021. It is made clear that any party unjustifiably denying documents would be liable to be burdened with costs.

8. List before the Court on 13th December, 2021.

I.A. 9882/2021 (application under Order XXXIX Rules 1 & 2 with Section 151 CPC seeking ex-parte and/or ad-interim reliefs/interim injunction)

9. Mr. N. Mahabir, learned counsel for the Plaintiff presses for ex-parte ad-interim orders.

10. The facts as set out in the plaint are as follows: The Plaintiff has filed the suit stating that it adopted the trade mark `SANDHI SUDHA' in 2008 and commenced commercial use in January 2009. The product of the Plaintiff is said to be an Ayurvedic joint pain relief oil and is sold under the mark `SANDHI SUDHA'. In 2011, the Plaintiff is said to have made minor changes in the composition of the oil and has commenced use of the trade mark `SANDHI SUDHA PLUS' as a relatively premium oil. Both the products, namely, `SANDHI SUDHA' and `SANDHI SUDHA PLUS' are being used by the Plaintiff. The Plaintiff also states that it got copyright registration for the packaging under which `SANDHI SUDHA' is being sold. The Plaintiff's application for registration of the trade mark `SANDHI SUDHA' in Class 5 under application no. 2031828 as on date, is pending. The trade mark has been accepted and published in Trade Marks Journal No. 1508 dated 31st October, 2011. The opposition of a third party is pending.

11. The Plaintiff has also set out in para 10 of the plaint, annual sales figure of its products `SANDHI SUDHA' and `SANDHI SUDHA PLUS' between the period 2010-11 to 2017-18. The highest sales made by it was in the year 2011-12 of Rs.202,28,27287 and Rs.16,77,84,117 by selling `SANDHI SUDHA' and `SANDHI SUDHA PLUS' respectively. It is also claimed that the Plaintiff regularly advertises its products on television and also publishes and promotes them through its websites, http://www.indiyaa.in/, www.sandhisudha.com and www.sandhisudha-plus.com.

12. Mr. Mahabir further submits that on 23rd March, 2021, Plaintiff received an e-mail from the online platform being Snapdeal, informing them that their account for the product under the trademark `SANDHI SUDHA' had b

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