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IN THE HIGH COURT OF DELHI
Jyoti Singh, J.
Starbucks Corporation - Appellant
Versus
Teaquila A Fashion Café - Respondent
CS(COMM) 479 of 2019 & I.A. 12127 of 2019
Decided On : 06-05-2022




Trademark infringement and passing off established through confusion over use of similar marks, but need for sufficient evidence to support claims for damages emphasized.

Headnote:(A) Trade Marks Act, 1999 - Section 2(1)(zg) - Trademark infringement and passing off - Plaintiff sought permanent injunction against infringement of its registered trademark "FRAPPUCCINO" and damages, establishing goodwill and reputation through extensive use and registrations - Defendants operated under confusingly similar names, failing to appear and defend - Plaintiff made out a case for infringement and passed off, though damages based on conjectures rejected, awarding nominal damages of Rs.2,00,000/- - Costs awarded. (Paras 1-23)

(B) Evidence and Damages - The absence of concrete evidence supporting the claim for extensive sales prevented the award of higher damages; Plaintiff entitled only to nominal damages. (Paras 20-21)

Table of Content
1. trademark infringement and goodwill establishment. (Para 1 , 4 , 5 , 8 , 9 , 10)
2. evidence of mark identification and unauthorized use. (Para 6 , 7 , 11 , 12)
3. analysis of trademark infringement and passing off. (Para 14 , 15 , 16)
4. evaluation of damages and evidence requirements. (Para 20 , 21)
5. conclusion and order for relief and damages. (Para 22 , 23 , 24)

JUDGMENT

1. Present suit has been filed by the Plaintiff seeking decree of permanent injunction restraining the Defendants, their partners, etc. from infringing Plaintiff's registered trademark "FRAPPUCCINO" either alone or with any prefix or suffix or any other confusing and deceptively similar trademark in relation to their goods, services and business as well as passing off. Plaintiff has also prayed for award of damages and delivery up of the impugned goods, menu cards, etc. Decree for rendition of accounts of profits earned by the Defendants by using the FRAPPUCCINO marks is sought as an alternative relief to damages.

2. By order dated 03.09.2019, this Court granted an ex parte ad interim injunction in favour of the Plaintiff and against the Defendants. Relevant part of the order reads as under:

    "Consequently, till further orders defendant No.1 and 2, their partners, proprietors, licensees, franchisees, representatives are thereby restrained from using in any manner FRAPPUCCINO mark on any of the products sold by them."

3. Despite service, Defendants did not enter appearance and vide order 28.11.2019, they were proceeded ex parte.

4. Factual exposition to the extent necessary for the present judgement, as narrated in the plaint, is that Plaintiff is a Company organised and existing under the laws of the State of Washington, USA. In 1985, Plaintiff Company was incorporated as STARBUCKS CORPORATION and in the year 2019, when the suit was filed, it had 30,626 retail stores in 80 countries and territories around the world.

5. It is averred in the plaint that the Plaintiff uses the trademark FRAPPUCCINO and variations thereof for its widely popular hand-crafted blended cold beverages throughout the world in various flavours. The FRAPPUCCINO mark is registered in over 185 countries and territories in different classes in relation to various goods and services, details whereof have been furnished in the plaint. The trademark registrations are valid and subsisting.

6. It is averred in the plaint that the Plaintiff obtained top-level domain name frappuccino.com on 28.10.1997, which is re-directed to the Plaintiff's parent website at https://www.starbucks.com/menu/drinks/frappuccino-blended-beverages. Plaintiff has also obtained other top-level domain names where FRAPPUCCINO is the prominent part. A non-exhaustive list of the domains is given in the plaint.

7. It is stated that world-wide sales figures of the Plaintiff in respect of various products sold under the FRAPPUCCINO mark run into Billion USDs and Plaintiff spends substantial amount on advertisements and sales promotion. The net revenue, as reflected in the plaint, for the Fiscal Year 2018 was 24,719.5 million USD and the amount expended on advertising was 260.3 million USD. It is the case of the Plaintiff that due to extensive use, world-wide sales and marketing and premium quality of the goods sold under the said marks, Plaintiff has earned formidable goodwill and reputation and has garnered attention from national and international media and has featured in various magazines and newspapers, including on websites. Plaintiff has consistently received top-level brand rankings from various brand-evaluation agencies over the past 19 years, which includes Interbrand, a leading International branding consultancy Company, which ranked STARBUCKS amongst the "Top 100 Brands" in the world (2000-2018), as also Forbes brand ranking, as being one of the World's Most Valuable Brands. Most valuable brands are the ones that generate massive earnings in industries, where branding plays a major ro

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