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IN THE HIGH COURT OF DELHI
Prathiba M. Singh, J.
Levi Strauss and Co. - Appellant
Versus
Imperial Online Services Private Limited - Respondent
CS (COMM) 657 of 2021 & I.A. 16736 of 2021
Decided On : 24-03-2022




The court confirmed the trademark's distinctiveness and secondary meaning of the `Arcuate Stitching Design`, granting permanent injunction against its infringement and imposing costs due to non-compliance by the Defendants.

Headnote:(A) Trade Marks Act, 1999 - Sections 2(m) and 2(r)(ii)(c) - Permanent injunction against trademark infringement and passing off - Plaintiff seeks protection of `Arcuate Stitching Design’ mark; found that mark is distinctive and has acquired secondary meaning over time, dating back to 1873 - Defendants acknowledged rights but violated undertakings leading to the suit - Court declared mark as 'well-known' and restrained Defendants from using similar designs - Costs of Rs.4 lakhs awarded to Plaintiff. (Paras 22, 25, 24)

(B) Trademark Protection - Definition and criteria - The stitching pattern of the Plaintiff's jeans is recognized as a trademark deserving protection due to its distinctiveness and acquired meaning, despite being a non-traditional trademark. (Paras 14, 20)

Facts of the case:
The Plaintiff, manufacturer of denim jeans since 1873, filed suit against the Defendants for using its registered `Arcuate Stitching Design` on similar products. Defendants issued an undertaking to cease usage but failed compliance, leading to Plaintiff's injunction application. The case addressed issues of trademark rights and continuing infringement after acknowledgment of rights by Defendants.

Findings of Court:
The Defendants' actions constituted infringement of the Plaintiff's trademark rights; the `Arcuate Stitching Design` was well-established as a trademark protecting the Plaintiff's goods.

Issues: The primary issues were the valid protection of a non-traditional trademark and whether the Defendants' use constituted infringement despite acknowledgments made in previous undertakings.

Ratio Decidendi: Court held that the `Arcuate Stitching Design` mark was distinctive, thereby deserving legal protection as it had acquired secondary meaning over its long-time use. The Court determined that even the display of infringing designs violated existing injunctions against the Defendants.

Result: The suit was decreed in favor of the Plaintiff with costs awarded.

JUDGMENT

Prathiba M. Singh, J. (Oral)

1. This hearing has been done through hybrid mode.

2. The present suit seeking permanent injunction restraining trademark infringement, copyright infringement, passing off of trademark and other reliefs has been filed by the Plaintiff - Levi Strauss & Co. In the suit, the Plaintiff seeks protection of its stitching design, which is known as `Arcuate Stitching Design' mark. The said mark, as per the Plaintiff, was adopted in 1873 and is used on all the textiles including denim jeans, which are manufactured and sold by the Plaintiff. The said mark is as extracted below:

3. The grievance of the Plaintiff is that the Defendants were also selling denim jeans with the identical `Arcuate Stitching Design' mark through the website www.urbanofashion.com and other e-commerce platforms. The Plaintiff found the products with the infringing mark on various e-commerce platforms including amazon.in, flipkart.com, nykaafashion.com, myntra.com, snapdeal.com, limeroad.com and paytmmall.com. The mark used by the Defendants is depicted below:

4. The Plaintiff had issued notices to the Defendants. Out of the Defendants impleaded in the present case, the Defendant Nos.2 to 5 are the directors of Defendant No.1 company. In response to the notices which were issued by the Plaintiff, the Defendants through their counsels had executed undertakings on 16th February, 2021. In the said undertakings, the Defendants acknowledged the sole and exclusive rights of the Plaintiff in the `Arcuate Stitching Design' mark. The Defendants also undertook that within six months from the date of undertakings, i.e., 15th August, 2021, all the infringing products would be removed and no further manufacturing, distribution, or sale of good including jeans shall be undertaken by the Defendants with the infringing mark or stitching design similar to Plaintiff's mark. The relevant extracts of the undertaking dated 16th February, 2021 are set out below:

    "4. IOSPL acknowledges that LS & Co. has sole and exclusive rights in the Arcuate Stitching Design trademark (as shown in Annexure A);

    5. IOSPL has sold, and continues to sell, jeans bearing the stitching designs shown in Annexure B under its own brand names, including the brand name, NEOSTREAK and URBANO FASHION;

    6. Within a period of six (6) months from the Effective Date, IOSPL will cease any and all uses of(a) the stitching designs shown in Annexure B; (b) the Arcuate Stitching Design trademark shown in Annexure A; (c) any marks incorporating the Arcuate Stitching Design trademark shown in Annexure A; or (d) any other marks similar to the Arcuate Stitching Design trademark shown in Annexure A, on and in relation to any goods and/or services, including, but not limited to, readymade garments and related goods and services. After a period of six (6) months from the Effective Date, IOSPL will destroy any inventory of finished or unfinished jeans, and any other materials, such as advertising and promotional materials bearing the marks in 6(a) to (d) above that are in its possession or control;

    7. IOSPL undertakes that after a period of six (6) months from the Effective Date, IOSPL will never use or have any involvement in the manufacture, distribution or sale of goods, including jeans, at any future time, whether directly or indirectly, bearing any of the following (a) the stitching designs shown in Annexure B; (b) the Arcuate Stitching Design trademark shown in Annexure A; (c) any marks incorporating the Arcuate Stitching Design trademark shown in Annexure A; or (d) any other marks similar to the Arcuate Stitching Design trademark shown in Annexure A;"

5. However, it is the submission of the ld. counsel for the Plaintiff that despite giving the undertaking, the Defendants continued to manufacture and offer for sale the said denim jeans with the Plaintiff's `Arcuate Stitching Design' mark, which has led to filing of the present suit by the Plaintiff.

6. Vide order dated 22nd D





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