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2025 Supreme(Mad) 3980

IN THE HIGH COURT OF JUDICATURE AT MADRAS
N. SESHASAYEE, J.
Paragon Polymer Products Private Limited, Previously M/s. Paragon Rubber Industries - Appellant 
Versus
Sumar Chand Nahar and Anr. – Respondents
(T)CMA(TM) No.80 of 2023, (OA/8/2020/TM/CHN)
Decided On : 07-01-2025 

Advocates Appeared:
For the Appellant : Mr. R. Sathish Kumar for Mr. B. Karthick.
For the Respondent: Mr. Arun C. Mohan, Mr. R. Rajesh R. Vivekananthan.
Amicus Curiae : Mr. Avinash Wadhwani.

The court held that a well-known trademark's protection is prospective, not retrospective, meaning it cannot eliminate prior similar trademarks duly registered and used in a different class.

Headnote:(A) Trade Marks Act, 1999 - Sections 2(1)(zg), 9, 11, 12, 18, and 29(4)(c) - Registration of trademark - Opposition to registration of mark 'PARAGON' by appellant who holds a well-known mark in Class-25 against first respondent's application in Class-9 - The court emphasized that a well-known mark cannot retroactively eliminate existing marks of other users and must be protected only prospectively to avoid unfairly compromising concurrent use. - The appellant's marks are recognized only in the footwear industry, while the first respondent's mark has distinctiveness in electrical products due to its prior use. (Paras 9-14)

(B) Intellectual Property - Concepts of well-known trademarks and concurrent registration - The protection accorded to well-known marks is only prospective, taken to enhance consumer protections while acknowledging the rights of prior honest users of similar marks. The court ruled that a well-known mark does not provide retrospective privileges to oppose the registration by another long-term user in a different class. (Para 12)

Facts of the case:
The appellant, in business since 1975 under the mark 'PARAGON', opposed the registration of a similar mark by the first respondent, a long-standing user in the electrical industry since 1977. Key issues included the distinction between their respective markets and the implications of declaring 'PARAGON' a well-known mark.

Findings of Court:
The court found that the appellant could not block the first respondent from using its mark registered in 1986.

Issues: Whether a well-known mark grants the owner rights to block the registration of a similar mark already in use.

Ratio Decidendi: The court concluded that the declaration of a mark as well known is not retroactive and emphasizes prospective protection; it cannot impede a pre-existing user's right to register an already used mark in another category as it loses the exclusivity claim over common terms as they are dictionary words.

Result: Appeal allowed.

Table of Content
1. trademark registration and opposition. (Para 4 , 5)
2. involvement of well-known marks in trademark disputes. (Para 6)
3. assessment of confusion and market distinctiveness. (Para 8 , 9 , 10)
4. law principles on trademark rights and retrospective operation. (Para 11 , 13)
5. final ruling and remand for co-existence conditions. (Para 14 , 15)

JUDGMENT :

(N. SESHASAYEE, J.)

The appellant herein has lost its opposition against the registration of trade mark in an application filed by the first respondent for registering the device mark, which is a composite mark of a word 'PARAGON' + 'a flying bird' under Class-9. This Order is now under challenge.

2.1 The facts that led to the institution of this appeal may be briefly stated:

(a)The appellant has been in the business of manufacture and sale of footwear under its trade name 'PARAGON', since 1975. It has registered its mark PARAGON under Class-25 and allied classes associated with Class-25, on various dates.

(b)The first respondent has been doing business in the manufacture and sale of electric motors etc., since 1977, under the trade name PARAGON with a flying bird as a device. It has registered its mark as 'PE' along with words 'PARAGON ENGINEERS' written beneath it under Class 7.

(c)Be that as it may, a certain D.M.Tea Corporation, represented by Mr.Kundan Sharma, filed an application before the Trade Mark Registry, for registration of the very word 'PARAGON' under Class 30, for its products which inter alia included 'blended tea and tea powder'. The appellant herein had opposed the said registration successfully, and in its order dated 26.07.2017, the Trade Mark Registry had declared that the appellant's mark PARAGON is a well known mark.

(d) It is in these circumstances, the first respondent had applied for registration of an identical mark PARAGON under Class 9, which relates to electric motor starters, etc. For the current purpose, it may be stated that Class 9 is closely associated with Class 7 category of goods, all of which fall within one common denominator of 'electric motors' broadly. (This distinction may not be very relevant for the current purpose).

(e)The first respondent had filed its application on 28.09.2001, and after examination, it came to be published in the Trade Mark Journal 1330 dated 01.05.2005.

2.2 On gaining knowledge about the application of the first respondent for the registration of the mark PARAGON under Class 9, the appellant herein entered appearance to oppose the registration of the said mark on the following grounds:

a) That the word PARAGON, was coined by the appellant, that it is being used by it uninterruptedly from 1975, and ever since the word 'PARAGON' has come to be associated with the appellant as a composite mark. It is registered under various classes including classes 1,7, 17 and 25. The appellant has a pan India market for its products. Therefore, allowing the first respondent to trade using the mark 'PARAGON' for its products' would cause confusion in the minds of the consumers and lead to dilution of the appellant’s mark.

b) The adoption of the mark “PARAGON” by the first respondent is not bonafide. The first respondent began to use the mark only 10 years after the appellant started using its mark, and in the same geographical location as the appellant.

c) The mark of the appellant has been recognized as a well-known mark by the Trade Marks Registry, and it is associated with the products manufactured by the appellant. Therefore, even if the first respondent uses the mark to sell products belonging to a different classes, the public would still associate the same as that of the appellant.

d) The registration of the proposed mark of the first respondent would violate Sections 9,11,12 and 18 of the Trade Marks Act.

2.3 The first respondent rebutted the opposition of the appellant by stating:

a) The first respondent company was established in the year 1966, and is involved in the manufacture of a wide range of electrical products.

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