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IN THE HIGH COURT OF DELHI
Prathiba M. Singh, J.
Indiyaa Distribution Network LLP - Appellant
Versus
P. Singh - Respondent
CS(COMM) 366 of 2021 and I.A. 14775 of 2022
Decided On : 25-11-2022




Court emphasizes that prior use and goodwill in trade names give rise to rights that protect against passing off and copyright infringement.

Headnote:(A) Copyright Act, 1957 - Trademark Act, 1999 - Permanent injunction for passing off and copyright infringement in respect of the mark 'SANDHI SUDHA' and packaging used by the Plaintiff founded on substantial goodwill and prior use - It was prima facie established that Defendant No.1 was manufacturing and selling infringing products. (Paras 3, 6, 10, 14)

(B) Evidence of statements leading to the conclusion that Defendant No.1's conduct was not transparent and displayed shifting stances, influencing the court's perception of credibility. (Paras 10, 11)

(C) The Defendants collectively agreed to cease infringing activities and take corrective actions regarding trademarks. (Paras 14)

Facts of the case:
The plaintiff sought relief against four defendants for infringing upon its trademarks and copyrights related to its Ayurvedic product 'SANDHI SUDHA', asserting robust sales and goodwill since 2009. The plaintiff successfully secured an ex-parte interim injunction initially, later solidified during the suit with admissions by the defendants.

Findings of Court:
The suit was decreed against all defendants; Defendant No.1 was ordered to assign his trademark to the plaintiff and withdraw oppositions against plaintiff's applications.

Issues: The primary issues addressed included the authenticity of the defendants' claims regarding the manufacturing and selling of infringing products.

Ratio Decidendi: The court found the defendants' testimonies lacking transparency; Defendant No.1 was ordered to cease use of infringing trademarks, uphold plaintiff's rights to the mark.

Result: Suit decreed in favor of the Plaintiff with directions issued to all defendants.

Table of Content
1. facts of the plaintiff's product and trademark. (Para 2 , 3 , 4 , 5)
2. court's analysis of defendant's conduct. (Para 6 , 8 , 10)
3. defendant's acknowledgments and obligations. (Para 9 , 11 , 12 , 13)
4. final orders and decrees issued. (Para 14)
5. conclusion on costs and resolution of the suit. (Para 15 , 16)

JUDGMENT

Prathiba M. Singh, J. (Oral)

1. This hearing has been done through hybrid mode.

2. The present suit has been filed by the Plaintiff - Indiyaa Distribution Network LLP against the four Defendants, being Defendant No.1 - P. Singh, Defendant No.2 - Sanjivan Anusandhan Pvt. Ltd., Defendant No.3 - Harsheen Sales, and Defendant No.4 - India Best Shop. The Plaintiff seeks permanent injunction, passing off, rendition of account, damages and other reliefs.

3. The Plaintiff has been engaged in the manufacture and sale of an Ayurvedic joint pain relief oil since the year 2009, under the mark `SAPTARISHI SANDHI SUDHA'. It is claimed that the mark `SANDHI SUDHA', and the house mark `SAPTARISHI', was coined by the Plaintiff in the year 2008. The mark `SANDHI SUDHA' has been in use by the Plaintiff since the year 2009, along with the house mark `SAPTARISHI'. The Plaintiff also claims to be the registered proprietor of the copyright in the packaging of the product branded under the mark `SAPTARISHI SANDHI SUDHA'. The `SANDHI SUDHA' product of the Plaintiff is stated to have achieved substantial sales and goodwill, and the Plaintiff has a large network of distributors in India for the said product. The sales figures of the `SANDHI SUDHA' product of the Plaintiff, as set out in the Plaint, was more than Rs.1 crore for the financial year 2017-2018. In addition, the advertisement expenses of the Plaintiff in respect of its `SANDHI SUDHA' product, as set out in the Plaint, was over Rs.53 lakhs for the financial year 2017-2018. Extensive publicity has been given to the `SANDHI SUDHA' product on various television channels, as also, through the Plaintiff's websites, being www.indiyaa.in, www.sandhisudha.com, and www.sandhisudha-plus.com.

4. The packaging of `SANDHI SUDHA' was also registered under the Copyright Act. The Plaintiff has applied for the registration of the mark `SANDHI SUDHA', as also, its variants. The details of the said trademark applications of the Plaintiff have been set out in the Plaint, and are extracted below:

Application No.TrademarkStatus
2031828 SANDHI SUDHAOpposed by third-party Dhanvantri
3090453SANDHI SUDHA HAI TO ARAM HAI Pending
3138171SANDHI SUDHA
label
Opposed by Defendant no. 1. Evidence not filed despite service of Plaintiffs counter statement on 23 April 2020. Opposed by third-party Dhanvantri.
3138172SANDHI SUDHA
label
Opposed by Defendant no. 1. Show cause notice by Trademark office to abandon the opposition. Opposed by third-party Dhanvantri.
3928095SANDHI SUDHA PLUSPending
3928096SAPTARISHI SANDHI SUDHA PLUSOpposed by Defendant No. 1. No evidence filed by Defendant to show any use.

5. The grievance of the Plaintiff is that, sometime in March, 2021, the Plaintiff acquired knowledge through the e-commerce platform `www.snapdeal.com' that the products under the mark `SANDHI SUDHA' were being suspended from sales on its platform due to some legal issues. It was then that the Plaintiff realized that the Defendants had raised an objection in respect of the Plaintiff's products being sold on the said e-commerce platform. The Plaintiff made enquiries which revealed that the Defendant No. 1, which was also operating in the name of Defendant No. 4, was engaged in the manufacture of infringing products under the mark `SANDHI SUDHA', and was supplying the same to Defendant No.2. As per the Plaint, the allegations were that the Defendants were jointly and severally engaged in the manufacture and sales of products bearing the mark `SANDHI SUDHA'. The competing products of the Plaintiff and the Defendants are depicted below:

PLAINTIFF'S PRODUCTDEFENDANTS' PRODUCT
FRONT VIEWFRONT VIEW
BACK VIEW

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