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IN THE HIGH COURT OF DELHI
Prathiba M. Singh, J.
ITC Limited - Appellant
Versus
Tapisserie Lifestyle Private Limited - Respondent
CS(COMM) 667 of 2021 & I.As. 16907 of 2021, 611 of 2022
Decided On : 24-03-2022




Trademark infringement occurs when a competing mark creates a likelihood of confusion among consumers as to the source of goods; protection extends to trade dress when substantial similarities exist.

Headnote:(A) Trade Marks Act, 1999 - Sections 28 and 29 - Infringement and passing-off - Plaintiff claims rights over the trademark ‘GOLD FLAKE’ for more than 100 years - Defendant using the trademark ‘HASH GOLD’ alleged to be deceptively similar - Interim injunction granted based on prima facie case of confusion among consumers. (Paras 5, 12)

(B) Trade Dress Protection - The court identified significant similarities between the plaintiff’s and defendant’s packaging, including colors and styles, warranting protection to prevent consumer confusion regarding the products’ origins. (Paras 7, 9)

Facts of the case:
The appellant is the proprietor of the trademark ‘GOLD FLAKE’ used for cigarettes, claiming long-standing market recognition since 1910. The defendant manufactures cigarettes under ‘HASH GOLD’, which the plaintiff argues infringes on its trademark by adopting a similar color scheme and packaging design. (Paras 3, 9)

Findings of Court:
The defendants' use of a similar trademark and packaging creates a high potential for consumer confusion, thus justifying the court's decision to maintain the injunction against the defendants. (Paras 12)

Issues: The court addressed whether the defendant's product packaging misleadingly resembles the plaintiff’s and the extent of consumer confusion likely to arise. (Para 9)

Ratio Decidendi: The court determined that the significant similarities in branding, packaging, and potential consumer confusion necessitated the continuation of the interim injunction to uphold the plaintiff's trademark rights. (Paras 5, 12)

Result: The interim injunction granted against the defendants is confirmed and applications disposed in these terms.

Table of Content
1. proprietary rights in the trademark 'gold flake'. (Para 2 , 3)
2. interim injunction granted based on prima facie case. (Para 5 , 6)
3. evidence of confusion in branding and packaging. (Para 7 , 8 , 9)
4. confirmation of injunction and handling of seized items. (Para 10 , 11 , 12)
5. procedural orders for future proceedings. (Para 13 , 14 , 15 , 16 , 17)

ORDER

1. This hearing has been done through hybrid mode.

I.A. 16907/2021 & I.A. 611/2022

2. The applications under Order XXXIX Rule 1 & 2 CPC and Order XXXIX Rule 4 CPC, being I.A. No.16907/2021 and I.A. No.611/2022, have been taken up for hearing. The competing products in this case are `GOLD FLAKE' of the Plaintiff and `HASH GOLD' of the Defendant.

3. The case of the Plaintiff is that it is the proprietor of the trade mark `GOLD FLAKE' which has been in use for more than a 100 years with respect to cigarettes. The trademark `GOLD FLAKE' is stated to have been assigned to the Plaintiff in 1910 and enjoys recognition in the market. The Plaintiff's rights over the trademark `GOLD FLAKE' have been recognized in various Courts. The Defendants are manufacturers and sellers of cigarettes under the brand name and trade dress `HASH GOLD'. The Plaintiff's case is that the trademark and trade dress of the Defendants' products is also a red-gold colour combination in the same style, get-up and colour scheme by the Plaintiff.

4. The two packagings are set out below:

5. An interim injunction has been granted in this matter, vide order dated 17th December, 2021. The operative portion of the said order is as under:

    "24. After hearing, leamed Senior Counsel for plaintiff and on perusal of material placed on record, this Court finds that a prima facie case to grant ex-parte ad-interim injunction relief in favour of plaintiff against the defendants, is made out.

    25. Accordingly, till further orders, defendants, their partners, proprietors, servants, agents, distributors, marketers, suppliers and all others in active concert or participation with them are restrained from manufacturing, selling, offering for sale, advertising, directly or indirectly, dealing in the infringing products, more particularly identified as products bearing the impugned label /trade dress and/or impugned mark - 'HASH GOLD' and/or any other mark/name deceptively similar to the plaintiffs registered trade marks "GOLD FLAKE" resulting in the infringement of the plaintiffs rights in the registered trademarks and further they are restrained from passing-off the impugned mark/lable/trade dress."

6. The submission of ld. Sr. counsel for the Plaintiff is that the Plaintiff's product is known by the customers as `Bada Gold/Gold Kings' and `Chota/Small Gold' cigarettes. The word `GOLD' in respect of cigarettes is associated exclusively with the Plaintiff. On the other hand, ld. Counsel for the Defendant submits that the word `GOLD' is generic in nature.

7. A perusal of the rival packaging and various features in the packaging would reveal that there are several identities and similarities between the Plaintiff's GOLD FLAKE product and the Defendant's HASH GOLD product.

  • First, the use of the word `GOLD' which is a prominent feature of the Plaintiff's mark.
  • Second, the Defendants' use of a red and gold ribbon device which is almost identical to the Plaintiff.
  • Third, the golden packaging in which the cigarettes are sold is also identical.
  • Moreover, even the flavors such as: PREMIUM BLEND, MINT, etc. are being imitated by the Defendant.

8. The most important fact is that the Defendants' catalogue which has been placed on record shows that internationally the Defendants are using the word `HASH' as a trademark for their products, in a black and red packaging, but in India they have chosen to add the word `GOLD' to the name of the product. Thus, there can be no justification for the Defendant to use a different packaging, trade dress and colour combination in India which is so closely imitative o







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