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2023 Supreme(P&H) 2625

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
AUGUSTINE GEORGE MASIH, ALOK JAIN, JJ.
Pernod Ricard India Private Limited – Appellant
Versus
United Spirits Limited – Respondent
FAO-COM NO. 2 of 2022 (O&M)
Decided On : 21-03-2023

Advocates Appeared:
Mr. M.L. Sarin, Senior Advocate with Mr. Himmat Singh, Ms. Mamta Jha and Mr. Nakul Sharma, Advocates; For the Appellant
Mr. Chetan Mittal, Senior Advocate with Mr. Amit Jhanji, Senior Advocate with Mr. Gurpreet S. Kahlon, Mr. Himanshu Gupta, Ms. Nikita Garg, Ms. Aarti Aggarwal, Mr. Uday Vir Rana and Ms. Sehej Sandhawalia, Advocates; For the Respondent

Headnote:(A) Trade Marks Act, 1999 - Sections 15, 17, 28, 29, and 124(5) - Appeal against dismissal of application for interim injunction for trademark infringement - Appellant claimed infringement of 'Blenders Pride' mark by respondent's 'Royal Challenger American Pride' - The court found no deceptive similarity due to commonness of 'Pride' and absence of separate registration - Application dismissed as accordance with legal provisions. (Paras 1, 2, 17, 23, 40)

(B) Trademark Infringement - The principles governing the protection of trademarks dictate that a composite mark cannot be dissected to claim exclusivity over its individual elements, especially when the terms are common to trade - The appellant’s claim failed due to lack of distinctiveness of 'Pride' as demonstrated by numerous other existing marks. (Paras 15, 24, 36)

(C) Passing Off - To establish passing off, the claimant must show confusion in the minds of consumers regarding the source of goods, which was not demonstrated - The burden of showing likelihood of confusion rests with the appellant. (Paras 38, 39)

Table of Content
1. overview of the case and appeal origin. (Para 1)
2. factual background of trademark registration and disputes. (Para 2 , 3)
3. appellant's claims for injunction and trademark infringement. (Para 4 , 5)
4. appellant's arguments on goodwill and market impact. (Para 6 , 7 , 8)
5. legal standards for assessing deceptive similarity. (Para 9 , 10 , 11)
6. importance of independent trademark registration. (Para 12 , 13 , 14)
7. respondent's defense and arguments against infringement. (Para 15 , 16 , 17)
8. legal provisions regarding trademark registration and rights. (Para 18 , 19 , 20)
9. argument concerning maintainability and procedural issues. (Para 21 , 22 , 23)
10. discussion on appellant's burden of proof for trademark rights. (Para 24 , 25 , 26)
11. final arguments stressing absence of confusion and market impact. (Para 27 , 28 , 29)
12. court's considerations for granting injunctive relief. (Para 30 , 31)
13. court’s conclusion on the merits of the infringement claim. (Para 32 , 33 , 34 , 35 , 36 , 37 , 38 , 39)
14. dismissal of the appeal and conclusion on the application. (Para 40 , 41)

JUDGMENT

Mr. Alok Jain, J.

The present appeal arises out of the order dated 17.01.2022, whereby, the learned Court below has dismissed the application under Order 39, Rule 1 and 2 of CPC, filed by the appellant, inter alia, praying for restraining the defendants from infringing the trademark "Blenders Pride" by using, manufacturing and selling the goods under the alleged Trademark "Royal Challenger American Pride".

2. The brief facts of the case, as narrated by learned Senior counsel for the appellant, are that the Trademark "Blenders Pride" was adopted by the predecessor of the appellant-Company namely, the Seagrams Company Limited in the year 1973, for which it had obtained registration of the Trade Mark "Blenders Pride" vide Trademark Registration No.623365 in Clause 33, which relates to and deals in respect of wines, spirits and liquors. The said registration was dated 25.03.1994 and, thereafter, the predecessor of the appellant-Company launched a whiskey under the Trademark "Blenders Pride" in India.

3. Cutting short the long history of success of the said product in the market, learned Senior counsel for the appellant submits that by the year 2019, the appellant-Company was generating annual sales of X 1770 crores per annum, however, in the year 2019, the respondent United Spirits Limited (USL) filed an application No.4300764 seeking registration of the Trademark "Challenger American Pride" for the goods falling under Classes 32 and 33. Thereafter, the respondent applied for the approval of the label with the competent authorities at Mohali in Punjab and the appellants, coming to know about it, immediately filed their objections. In furtherance to protect their Trademark, the appellants also filed an application for cancellation of the Trademark Registration No.4300764 on 06.11.2020. Taking further steps to protect their rights, the appellants filed a suit before the Commercial Court, Mohali, inter alia, praying for:-

    "27. In the light of above facts and circumstances, and in the interest of justice, the Plaintiff most respectfully prays that this Hon'ble Court may be pleased to grant the following reliefs:

    a) a decree for permanent injunction restraining the Defendant, by itself or through its directors, group companies, associates, divisions, assignees in business, licensees, franchisees, agents, distributors and dealers from using manufacturing, selling, offering for sale directly or indirectly, the goods under the impugned Royal Challenge trade mark American Pride as applied for before the Excise Office, Punjab or any other trade mark/label containing the impugned trade mark AMERICAN PRIDE in any manner whatsoever or any other trade mark/label/logo which is identical with/deceptively similar to the trade mark Blenders Pride of the Plaintiff as may amount to infringement of trade mark registrations as mentioned hereinabove;

    b) a

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