A trader cannot be allowed to let his goods pass off as those of another, even if the two trades are not closely correlated and the goods are not analogous.

1. This appeal has arisen out of an action for passing off instituted by the respondents against the appellants to restrain them from using the name of Philips or any similar mark on watches, clocks and the like so as to pass off their goods as those of the plaintiffs.

2. The respondent No. 1 is a limited company incorporated under the laws of the Netherlands and having its registered office at Emmasingel, 29, Eindhoven, Holland and respondent No. 2 is its subsidiary limited company incorporated in India. The company in India is engaged under the trade mark Philips in the manufacturing of a wide range of electrical and non-electrical goods including all kinds of lighting products, radios, electronic tubes, semi conducting devices and industrial component articles, materials, electroacoustical and cinematographic recording and reproducing apparatus, domestic refrigerators and deep freezers, cryogenic equipment, photographic and optical apparatus, instruments, sound recording, reproducing and simplifying equipment, electronic microscopes, electrotechnical, scientific welding, measuring, weighing, medical, electro-medical and X-ray apparatus and equipment both for medical and industrial applications, electric household appliances and machines, apparatus and equipment for telecommunication and for intercommunication, automatic and line telephony apparatus and equipment, dark room timers, multiple electric clocks and timers.

3. The defendants, a partnership firm are carrying on business in the sale of watches, clocks, time-pieces and accessories thereof under the trade mark Philips since 1954. They are also doing business under the name and style of Musical Trading Company.

4. The case set up by the plaintiffs is that they have built up a vast amount of goodwill by the sale and advertisement of their goods in India.

5. The trade mark Philips has become a household word and has acquired an enviable reputation in India and throughout the world and is associated by the public and traders with the goods of the plaintiffs. The defendants being aware of the reputation and goodwill attached to the Trade Mark Philips in order to trade upon their reputation dishonestly adopted the said trade mark for their watches and clocks. It was further asserted that the defendants who were selling watches and clocks under the trademark Philips were also selling radios, gramophone records side by side and that they could not have any other purpose in adopting the trade mark Philips but to pass off their goods as those of the plaintiffs.

6. The defendants controverted the claim and pleaded that they have been using the trade mark Philips for watches, clocks, time-pieces and accessories thereof bona fide for several years since the year 1954 whereas the plaintiffs had never marketed any Philips watches in India. They, therefore, claimed that they have built up a considerable goodwill in the trade mark of Philips for their watches and clocks and the plaintiffs had no right to the exclusive use of the said trade mark or to restrain them from using it for their watches and clocks.

7. On the pleadings of the parties, the following issues were framed by the trial Court :-

1. Whether the plaintiffs are duly incorporated companies and this suit has been validly instituted for and on behalf of those companies by person or persons duly authorised in that behalf?

2. Whether in India the plaintiffs have been selling their goods detailed in para 4 of the plaint with the trade name Philips on those goods? If so, since when?

3. Whether the plaintiffs have acquired any goodwill for the sale of the goods referred to in issue No. 2 and the trade mark Philips has acquired a reputation which is associated by the public and the traders with the goods of the plaintiffs?

4. Whether the defendant has deliberately and dishonestly adopted the trade mark Philips for watches, clocks, radios, gramophone records etc. to pass off those as the goods of the plaintiffs, if so, si