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IN THE HIGH COURT OF DELHI
Jyoti Singh, J.
Sandhya Kumari Proprietress - Appellant
Versus
Sakshi Food - Respondent
FAO-IPD 7 of 2022 & CM Appls. 4288 of 2017, 4289 of 2017
Decided On : 22-07-2022




Unregistered trademark claims for passing off are valid and do not require registration. The trial court must address copyright infringement and passing off claims appropriately.

Headnote:(A) The Copyright Act, 1957 - Sections 2(c) and 14; The Trade Marks Act, 1999 - Section 27 - Trademark infringement and passing off - Appellant claims rights over the trademark 'RINGO' and seeks injunction against the Respondent for using the same. The Trial Court vacated the injunction citing lack of trademark registration, overlooking the distinction between passing off claims and infringement claims. (Paras 4, 15, 20)

(B) Unregistered trademarks - A suit for passing off does not require trademark registration; prior use is sufficient. (Paras 18, 21)

(C) Copyright infringement - The court emphasized the need to adjudicate claims of copyright infringement raised by the Appellant, which the Trial Court neglected. (Paras 20, 21)

Facts of the case:
The Appellant, engaged in confectionery, adopted the trademark 'RINGO' in 2011 and filed for registration in 2013. Respondent allegedly used the same trademark, prompting the Appellant to seek legal protection. The Trial Court dismissed the Appellant's application for injunction.

Findings of Court:
The Trial Court's order was set aside due to failure to address passing off and copyright claims, warranting a remand for fresh consideration.

Issues: Whether the Appellant's unregistered trademark rights suffice for a passing off claim and if copyright infringement claims were adequately addressed are key questions.

Ratio Decidendi: The court ruled that unregistered trademark claims for passing off are valid, and the Trial Court erred by not considering both passing off and copyright claims in its decision.

Result: Impugned order set aside and remanded for fresh consideration.

Judgement Key Points

Based on the provided legal document, the key points are as follows:

  1. The court emphasized that claims for passing off regarding unregistered trademarks are valid and do not require registration. Prior use and reputation are sufficient to establish rights in passing off actions (!) (!) .

  2. The trial court's decision was overturned because it failed to address the claims of passing off and copyright infringement raised by the appellant. The appellate court found that these claims are distinct from trademark infringement and must be adjudicated separately (!) (!) .

  3. The appellant's primary relief sought was for passing off and copyright infringement, not for infringement of registered trademarks. The court highlighted that a suit for infringement of a trademark typically requires registration, but passing off does not, and the trial court erred by not considering the passing off claim (!) (!) (!) .

  4. The appellate court remanded the case for a fresh determination of the passing off and copyright infringement claims, emphasizing that the trial court must evaluate these claims properly before proceeding with the application under Order 39 Rules 1, 2, and 4 CPC (!) (!) .

  5. The trial court's reasoning that both parties lacked registered trademarks and thus had no prima facie case was flawed. The court should have considered the rights arising from prior use and reputation, which are central to passing off actions (!) (!) .

  6. The appellate court clarified that the absence of a registered trademark does not bar the appellant from claiming passing off rights, and the court must consider the evidence of prior use, reputation, and associated copyright protections (!) (!) .

  7. The case was remanded with directions for the trial court to decide both the passing off and copyright infringement claims afresh, without any preconceived notions, based solely on the merits and evidence presented (!) (!) .

These points collectively underscore the importance of properly adjudicating passing off and copyright claims, regardless of registration status, and the necessity for the trial court to consider all relevant evidence before making a final decision.


Table of Content
1. trademark ownership and usage context (Para 3 , 4 , 5 , 7 , 8)
2. parties’ arguments against injunction (Para 10 , 12 , 13)
3. court's findings on trademark registration (Para 14 , 15 , 16)
4. consideration of claims such as passing off (Para 17 , 19 , 20)
5. remand for fresh consideration (Para 22 , 23)

JUDGMENT

Jyoti Singh, J. (Oral)

1. Present appeal has been filed assailing the order dated 08.11.2016, passed by the learned Trial Court in suit bearing CS No. 55/2016 as well as seeking a direction to dismiss the application filed by the Respondent herein under Order 39 Rule 4 CPC.

2. Appellant herein is the Plaintiff in the suit while Respondent is the sole Defendant. Parties hereinafter are referred to as per their litigating status in this Court.

3. Brief facts, shorn of unnecessary details, to the extent necessary and as set out in the plaint filed before the learned Trial Court are that Appellant is engaged in the business of manufacturing and marketing confectionary items and namkeens as well as other allied, cognate and related goods. In the year 2011, Appellant adopted the word mark/label `RINGO' in course of its trade, in relation to the aforesaid goods. Word `RINGO' forms essential part of Appellant's artistic labels which are as follows:

4. In order to acquire statutory rights over the trademark/label/trade dress, Appellant applied for registration on 30.09.2013 in class 30, which was stated to be pending when the plaint was filed. Appellant represented its label in an artistic manner including its get-up, lettering style, colour scheme, placement of words, artistic features etc. and it is averred that the said artwork is an original `artistic work' under Section 2(c) of the Copyright Act, 1957 (hereinafter referred to as the `Act'). Appellant is the owner and proprietor of the Copyright in the said label and has obtained `No Objection Certificate' from the Trade Marks Registry, in terms of Section 45 of the Act. Appellant is thus entitled to protection of its Copyright under Section 14 of the Act.

5. It was stated before the Trial Court that Appellant is the proprietor, prior adopter and continuous, extensive and exclusive user of its trademark/ label in relation to confectionaries and namkeens and the trademark is identified as exclusively originating from Appellant's source and none else. The goods being of high quality have a great demand in the market and on this count, Appellant has acquired tremendous goodwill and enviable reputation, which is further evident from the substantial sales as reflected in the Income Tax returns of the Appellant.

6. It was urged before the Trial Court by the Appellant that Respondent is also engaged in the same business, i.e., manufacturing and marketing of confectionary items and namkeens and has adopted and is commercially using the trademark/label RINGO in relation to the impugned products. The packaging/trade dress of the Respondent bearing the impugned trademark/ label as brought out in the plaint is as under:

7. The impugned trademark, according to the Appellant, is identical to Appellant's trademark/label in every aspect, i.e., phonetically, visually, structurally, conceptually and in all its essential features. Respondent has imitated to the extent that it has also copied the literary work in `MAZZA AA GAYA'. Adoption of the impugned trademark by the Respondent is dishonest, tainted and mala fide and the use of the impugned trademark is a false trade description within the meaning of Section 2(1)(i) read with Section 103 of the Trade Marks Act, 1999, leading to unfair trade and competition. As the competing trademarks are identical, goods are identical and the trade channels are also common, consumers are bound to be deceived into believing that the goods of the Respondent are those of the Appellant. Misrepresentation by the Respondent is clearly with a view to encash on the goodwill and reputation of the Appellant and this amounts to pass

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