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IN THE HIGH COURT OF DELHI
C. Hari Shankar, J.
KEI Industries Limited - Appellant
Versus
Raman Kwatra - Respondent
CS(COMM) 9 of 2021 & I.A. 287 of 2021, IA. 290 of 2021, I.A. 287 of 2021, I.A. 290 of 2021, I.A. 15933 of 2021 and I.A. 15934 of 2021
Decided On : 17-05-2022




Trademark infringement occurs when a registered mark's rights surpass an unregistered mark's claims, especially when confusion is likely.

Headnote:(A) Trade Marks Act, 1999 - Sections 28, 29(2), and 29(4) - Interlocutory injunction - Plaintiff sought an injunction restraining defendants from using 'KEI' mark, alleging infringement of registered trademarks - The court established that plaintiff has priority of user and registration since 1968, while the defendants' use was only since 2008. (Paras 1, 29, 43)

(B) Ownership and User Rights - The defendant's claims to inheritance of the right to use the mark 'KEI' from their predecessor were deemed unfounded as the right had been assigned to another party. (Paras 32, 43)

(C) Deceptive Similarity - The marks in question were found to be deceptively similar as both pertained to identical or allied goods, providing grounds for prima facie infringement. (Paras 40, 44)

Facts of the case:
The dispute arose from the plaintiff's claims of trademark infringement over the 'KEI' mark, which was registered in 1988 and used since 1968. The defendants claimed to start using the mark only in 2008. The court found the plaintiff's case strong based on prior use and registration. (Paras 1-8)

Findings of Court:
The plaintiff established a prima facie case for infringement, supported by the claim of use and registration of 'KEI' well before the defendants. An interlocutory injunction was deemed appropriate to protect the plaintiff's rights against probable confusion. (Paras 51, 51)

Issues: The primary issues were whether the defendants could claim rights to the trademark 'KEI' and the potential for confusion between the two marks as used in the same market. (Paras 27, 29)

Ratio Decidendi: The court emphasized that the assigned rights to the mark had not been inherited by the defendants, and their claim of 'honest concurrent use' did not suffice against established trademark rights of the plaintiff. (Paras 46, 47)

Result: The application for an interlocutory injunction was granted in favor of the plaintiff, restraining the defendants from using the 'KEI' mark. (Paras 51)

Table of Content
1. overview of trademark infringement claim. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8)
2. defendants' claim of prior rights to the trademark. (Para 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16)
3. plaintiff's rebuttal of defendants' arguments. (Para 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26)
4. analysis of trademark registrations and rights. (Para 29 , 30 , 31 , 32 , 33 , 34 , 35 , 36)
5. court's finding on deceptive similarity and infringement. (Para 37 , 38 , 39 , 40 , 41 , 42 , 43 , 44)
6. defendant's honest and concurrent user defense examined. (Para 45 , 46 , 47 , 48 , 49)
7. court's decision on probable success of plaintiff. (Para 50)
8. conclusion granting injunction against defendants. (Para 51 , 52)

JUDGMENT

I.A.287/2021 (under Order XXXIX Rules 1 and 2 of the CPC)

1. KEI Industries Ltd, the plaintiff, alleges infringement, by the defendants, of its registered trademark "KEI", of which it has registration both as a word mark and as the device mark. Accordingly, the plaint seeks a decree of permanent injunction, restraining the defendants from infringing the plaintiff's registered trademarks either physically or via online platforms, along with other prayers for rendition of accounts, delivery up and declaration.

2. With the plaint, the plaintiff has filed an application, under Order XXXIX Rules 1 and 2 of the Code of Civil Procedure, 1908 (CPC), seeking interlocutory injunctive reliefs. Learned Counsel for both sides have been heard at length on this application, which the present order disposes of.

Facts

3. The dispute, in the present case, is not so much one of whether the mark used by the defendants does, or does not, infringe the plaintiffs registered marks, but whether the defendants are entitled to use the said mark. Given the nature of the controversy, it would be appropriate to proceed by setting out the rival stands of both sides, as they emerge from the pleadings.

Case set up by the plaintiff in the plaint

4. According to the plaintiff, it was initially functioning as Krishna Electrical Industries, a partnership firm, which was subsequently incorporated into the plaintiff-public limited Company on 31st December, 1992. It claims to have been using the trademark/trade name/corporate name `KEI' since the commencement of its business in 1968, and that the word mark `KEI' was first registered in favour of the plaintiff in Class 9 for Wires and Cables (Electric and Telecommunication) on 27th September, 1988. Thereafter, the said word Mark `KEI' was registered, in favour of the plaintiff, in Classes 6, 16, 35, 37 and 42.

5. The plaintiff claims to have conceptualised, designed and adopted the logo mark "" in 2007, with respect to its goods and services, since which time the plaintiff claims to have been using the said logo extensively, exclusively and continuously. Registrations for the said Device Mark are held, by the plaintiff, in Classes 6 and 9, w.e.f. 14th June, 2007 and 29th June, 2007, respectively, as well as in Classes 16, 35, 37 and 42. Among the goods in respect of which the plaintiffs word and device marks are registered are wires and cables and electrical items.

6. Though the plaint provides a tabular depiction of all registrations held by the plaintiff, it may not be necessary, for the purposes of the present order, to make exhaustive reference thereto. Equally, the recitals, in the plaint, regarding the reputation that the plaintiff claims to have amassed over the years, and the various encomiums earned by it, relating to the use of the aforesaid marks, are also not of particular significance. Suffice it to state that the plaintiff avers that, by dint of long and extensive usage, the `KEI' mark has acquired considerable goodwill and reputation.

7. Around September 2017, avers the plaint, the plaintiff, during a routine check of the online records of the Registry of Trade Marks, noticed that the defendant had applied for registration of the "" Mark under Classes 7, 11 and 35. In view

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