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IN THE HIGH COURT OF DELHI
Navin Chawla, J.
Tata Sia Airlines Limited - Appellant
Versus
Shenzhen Coloursplendour Gift Co. Ltd. - Respondent
CS(COMM) 352 of 2020 & I.A. 9553 of 2021
Decided On : 31-08-2022




The court reaffirmed that unauthorized use of a well-known trademark, leading to confusion or dilution, constitutes infringement and unfair competition under trademark law.

Headnote:(A) Trade Marks Act, 1999 - Sections 2(1)(zg) and related provisions - Trademark infringement and passing off - Plaintiff sought injunction against defendant’s unauthorized use of 'VISTARA' mark - Court found the trademark well-known, leading to likelihood of confusion and dilution of goodwill - Court emphasized the importance of protecting well-known trademarks, stating, "the defendant has no justification for the adoption of an identical trade mark" (Paras 18, 24, 28, 30).

(B) Principles of passing off - The court reiterated that unauthorized usage causing confusion results in unfair competition and potential reputation harm (Para 29).

(C) Security concerns - Allegations of potential national and international security risk due to defendant’s goods (Para 27).

Facts of the case:
The plaintiff, a joint venture established in 2013, owns the well-established 'VISTARA' trademark used in airline services since 2015. The defendant sold goods allegedly infringing the trademark on an e-commerce platform.

Findings of Court:
The court upheld the plaintiff's claims of trademark infringement, awarding damages of Rs. 20 lakh for unauthorized use and damage to reputation (Paras 30, 32).

Issues: The court addressed whether the defendant’s conduct constituted trademark infringement, passing off, and its implications for consumer confusion and safety.

Ratio Decidendi: The court asserted that the plaintiff's 'VISTARA Marks' enjoyed significant protection as a well-known trademark, with unauthorized use leading to consumer confusion and a likelihood of security issues (Paras 24-29).

Result: The suit was disposed of in favor of the plaintiff, granting relief against the defendant.

Table of Content
1. factual background of the plaintiff (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11)
2. arguments regarding trademark infringement (Para 17 , 18 , 19 , 20 , 21 , 22)
3. court analysis of trademark protectability (Para 23 , 24 , 26 , 27 , 28 , 29)
4. determination of damages and injunction (Para 25 , 30 , 31 , 32)
5. conclusion and decree (Para 33)

JUDGMENT

1. The present suit has been filed seeking inter alia a decree of permanent injunction restraining the defendant, their associated companies, subsidiaries, directors, wholesalers, distributors, partners or proprietors, as the case may be, its officers, servant and agents from advertising, directly or indirectly offering any goods or services, using or registering corporate names, domain names, or listings on social media platforms as also e-commerce websites which bear the plaintiff's registered trade marks `VISTARA' and/or (hereinafter referred to as the `VISTARA Marks') along with relief against passing off, dilution, tarnishment and unfair competition.

FACTUAL BACKGROUND

2. It is the case of the plaintiff that the plaintiff was incorporated in the year 2013 as a joint venture between TATA Sons Limited and Singapore Airlines Limited, with TATA Sons holding the majority stake of 51% (Fifty-One Percent) in the plaintiff-company.

3. The plaintiff operates its full-service airlines for domestic and international destinations. The plaintiff, as on the date of filing the suit, has been serving thirty-six destinations with over two hundred flights a day, with a fleet of thirty-two Airbus A320 aircrafts; seven Boeing 737-800NG aircrafts; one Boeing 787-9 Dreamliner aircraft and one Airbus A321 Neo aircraft- with all aircrafts bearing the `VISTARA Marks' of the plaintiff.

4. The plaintiff commenced operations with a maiden flight from New Delhi to Mumbai on 09.01.2015. The plaintiff, as on the date of filing the present suit, operated flights between the Indian cities of Delhi, Mumbai, Bengaluru, Hyderabad, Chennai, Pune, Ahmedabad, Lucknow, Goa, Varanasi, Guwahati, Bagdogra, Bhubhaneswar, Srinagar, Jammu, Kochi, Chandigarh, Kolkata, Port Blair, Amritsar, Leh, Ranchi, Dibrugarh and Raipur; as also international destinations namely, Bangkok, Dubai, Nepal, Sri Lanka and Singapore. As on the date of institution of the suit, the plaintiff has already flown more than 15 million passengers. The screenshots and print outs from the plaintiff's website www.airvistara.com providing information about the plaintiff's services under the `VISTARA Marks' are exhibited as Ex. PW1/4 (colly.).

5. The plaintiff has incorporated the registered mark `VISTARA' in their domain name www.airvistara.com as also their mobile application (available on iOS and Android platforms), allowing the public to book flight tickets for their airline. The number of unique internet users visiting the website and WAP site of the plaintiff bearing the mark `VISTARA' between the August 2014 and December 2019 are detailed in paragraph 6 of the affidavit of Mr. Shashank Jain, the authorised signatory and Head-Legal of the plaintiff, examined by the plaintiff as PW-1.

6. The plaintiff has provided details of the amount spent by them on the advertisement and sales promotion across various media, with the amount spent on expenditure increasing substantially from Rs.1,66,81,571/- (Rupees One Crore Sixty-Six Lakh Eighty-One Thousand Five Hundred Seventy-One only) pre-launch between April to October 2014 to Rs.29 Crore (Rupees Twenty-Nine Crore only) in the Financial Year 2018-19. The details are mentioned in paragraph 8 of the affidavit of the PW1. The printouts of articles and advertisements regarding the services offered by the plaintiff are exhibited as Ex. PW1/6 (Colly.).

7. The plaintiff has applied for and is the registered proprietor of the `VISTARA Marks' in several classes in India. The details of trade mark registrations granted in favour of the plaintiff under the provisions of the Trade Ma

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