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IN THE HIGH COURT OF DELHI
Prathiba M. Singh, J.
Ms Copenhagen Hospitality and Retails - Appellant
Versus
A.R. Impex - Respondent
CS (COMM) 262 of 2021 & I.As. 7532 of 2022 and 7596 of 2022
Decided On : 13-05-2022




Protection of trademark rights involves preventing confusion in the marketplace and requires active compliance with injunctions to safeguard against passing off, especially in franchise relationships.

Headnote:(A) Trade Marks Act, 1999 - Sections 29 and 30 - Breach of injunction and passing off - Plaintiffs claimed rights in the mark 'LA PINO'Z PIZZA' as Defendant No.1 attempted to market under 'LA MILANO PIZZERIA' causing confusion - Court identified irreparable harm likely if the injunction was not upheld - Defendants instructed to remove associations with the Plaintiffs' brand from social media, and additional injunction imposed on derogatory remarks - The earlier undertakings were extended to a new sub-franchisee who takes over old branding - Compliance to be reported within stipulated time. (Paras 4, 10, 13, 14)

Facts of the case:
Dispute arose as Plaintiffs accused Defendant No.1 of infringing on their registered trade mark through a new brand suggesting past association with Plaintiffs' products, despite the formal break in their relationship.

Findings of Court:
Defendants must remove all associations with the Plaintiffs' brand from their digital profiles to prevent public confusion.

Issues: The court addressed the proper enforcement of trademark rights amid franchise disputes and the obligations of parties post-injunction orders.

Ratio Decidendi: The court reaffirmed the necessity of protecting trademark rights from confusion and established that compliance with injunctions must involve active monitoring and removal of infringing content.

Result: The applications are disposed of with conditions for compliance.

Table of Content
1. injunctive relief regarding trademark infringement. (Para 2 , 3)
2. details of interim orders and undertakings. (Para 4 , 5)
3. enforcement of compliance with interim orders. (Para 6 , 8)
4. addressing newer franchisee's compliance. (Para 10)
5. removal of derogatory remarks and required actions. (Para 11 , 12)
6. extending undertakings to new franchisees and directory listings. (Para 13 , 14)
7. opportunity for defendants to respond. (Para 15 , 16)
8. final disposition of modification application. (Para 17)

JUDGMENT

Prathiba M. Singh, J. (Oral)

1. This hearing has been done through hybrid mode.

I.A.7532/2022 (u/O XXXIX Rule 2(A) CPC) & 7596/2022 (modification of order dated 22.02.2022)

2. These are two applications moved by the Plaintiffs. The first application alleges breach of the injunction order dated 22nd February, 2022 by Defendant No.1. The second application seeks extension of the injunction order dated 22nd February, 2022 to a third sub-franchisee, which has now been taken over by Defendant No.1.

3. The history of these proceedings is that the Plaintiffs have claimed rights in the mark "LA PINO'Z PIZZA" and various other sub-brands. Defendant No.1 was the `master franchisee' of the Plaintiffs for the state of Gujarat. However, the relationship between the two broke. Defendant No.1 started its own pizza outlets under the name "LA MILANO PIZZERIA". It is the allegation of the Plaintiffs that Defendant No.1 is trying to pass off its own goods, services and business as that of the Plaintiffs.

4. Initially, vide order dated 2nd June, 2021 an interim order was passed in the following terms:

    "25. In view of the foregoing, the court is of the view that the Plaintiff has made out a prima facie case. The balance of convenience also lies in favour of the Plaintiff, and irreparable harm is likely to be caused to it if such relief is not granted. Accordingly, the following interim relief is deemed fit to be granted till the next date of hearing:

    (a) Defendant Nos. 1 and 2, their partners, associates, franchisee, sub-franchisee, licensees, sub-licensees, agents, servants, affiliates or any one claiming under it, directly or indirectly, in any manner infringing the Plaintiff's registered trade mark, are restrained from selling the pizzas under the impugned names SPRING BLING, LOVERS DELIGHT, BURN TO HECK, AMERICAN RETREAT, MILANO RETREAT and 7 CHEESY/CHEESE 7, which is infringing the Plaintiffs' registered trade marks SPRING FLING, LOVERS BITE, BURN TO HELL and ENGLISH RETREAT, and misuse Plaintiff's product names/marks LAS VEGAS RETREAT, CHICAGO RETREAT and CHEESY 7.

    (b) Defendants are restrained from using Plaintiff's propriety products at any of their outlets.

    (c) Defendant are restrained from accessing and controlling LA PINO'Z PIZZA's official social media handles or any other websites. They are further directed to immediately, on the service of this order, hand-over the control of the official social media accounts to the Plaintiff.

    (d) Defendants are restrained from using the Plaintiff's registered trademark LA PINO'Z PIZZA in any derogatory manner or in any public or private communication."

5. The said order was modified vide order dated 22nd February, 2022. Further undertakings were given by the Defendants in the following terms:

    "10 ...The Defendant has without prejudice, undertaken to abide by the following actions:

    A. To deactivate its Facebook and Instagram pages;

    B. To not use the sachets of chili flakes and oregano seasonings bearing the mark LA PINO'Z PIZZA;

    C. To neither use nor shall use, the mark LA PINO'Z PIZZA on pizza delivery bags;

    D. To neither use nor shall use, (lapinozahmedabad@gmail.com) or any other email ID containing the mark LA PINO'Z PIZZA;

    E. To neither use nor shall use, the mark LA PINO'Z PIZZA as Unified Payments Interface (UPI) IDs;

    F. To not disparage the Plaintiffs and their brand, inter alia, in any public communications."

6. The Defendants have, without prejudice, und

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