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2022 Supreme(Online)(Bom) 3773

BOMBAY HIGH COURT
AK Menon, J
Hindustan Unilever Limited – Appellant
Versus
USV Private Limited – Respondent
Commercial IP Suit (L) No. 805 of 2021 | Commercial IP Suit (L) No. 1087 of 2022



Advocates:
For the Appellants/Petitioners: Mr. Tulzapurkar, Mr. Sakhardande
For the Respondents: Mr. Dhond

Comparative advertising must not mislead or disparage; advertisements should be truthful and not solely rely on subjective claims, particularly in assessing product efficacy.

Headnote:(A) Commercial law - Comparative advertising - Law on disparagement - Appeals concerning an advertising campaign by a defendant which allegedly denigrates the plaintiffs' products - Court clarified standards for comparative advertising, noting freedom of commercial speech is subject to restrictions against defamation and denigration - Importance of pH values and their relevance to product efficacy discussed in context of consumer protection. (Paras 2, 18, 27)

(B) Jurisprudential principles - Court noted that appellate courts should exercise restraint in interfering with trial court's discretion unless it's arbitrary or perverse; established burden of proof lies with appellant to show the trial court's views were implausible. (Paras 5, 39)

Facts of the case:
Plaintiffs HUL and Wipro alleged that the defendant USVPL's advertisements misled consumers by making false claims about their products while comparing them unfavorably to the defendant's product, SEBAMED. The defendant's advertisements claimed a 'perfect' pH value, allegedly promoting the superiority of SEBAMED.

Findings of Court:
The court affirmed the trial judge's findings on the lack of truth in the claims made by USVPL and highlighted that advertisements could be misleading, resulting in consumer harm. The court issued an injunction against the advertisements while dismissing the appeals.

Issues: The main issues included whether the defendant's advertising campaign was misleading and disparaging, and the admissibility of pH as a distinguishing characteristic in comparative advertising.

Ratio Decidendi: The court ruled that USVPL's dependence on pH as the sole factor in advertising did not meet legal standards for fair comparative advertising and found purposeful disparagement in the campaign against plaintiffs' products.

Result: Appeals dismissed; injunctions against further advertisements upheld.

Table of Content
1. introduction of appeals and parties involved. (Para 1 , 2)
2. arguments about advertisement truth and commercial speech. (Para 3 , 4)
3. jurisprudential framework governing appellate review. (Para 5 , 6 , 7)
4. background of the products and advertisements. (Para 10 , 11 , 12 , 13 , 14)
5. comparative advertising and cross-product comparisons. (Para 15 , 20 , 21)
6. defense of truth and its complexities in advertisement. (Para 22 , 23 , 24)
7. judicial caution in advertising disputes. (Para 26 , 27 , 28)
8. criteria for disparagement and denigration in advertising. (Para 30 , 31)
9. final decision and reasoning against interference. (Para 39 , 40 , 41 , 42)

1. There are two Appeals. This common order will dispose of both. Both appeals arise from a common order and judgment dated 16th June 2022 (AK Menon, J). In Commercial IP Suit (L) No. 805 of 2021, Hindustan Unilever Limited ('HUL') is the Plaintiff. In Commercial IP Suit (L) No. 1087 of 2022, Wipro Enterprises Private Limited ('Wipro') is the Plaintiff. The Defendant is common, USV Private Limited ('USVPL').

2. HUL and Wipro both complained that USVPL launched an advertising campaign promoting and publicising its product under the brand SEBAMED. They claimed that the advertising campaign run by USVPL constituted unlawful disparagement and denigration of HUL and Wipro products, in which the Plaintiffs had valuable intellectual property rights. To be perfectly clear at the beginning, HUL sought protection for four of its products under the brand names, LUX, DOVE, PEARS and RIN. Clearly RIN is not of a class with the other three because it is a detergent. For its part Wipro sought protection for its product SANTOOR.

3. Mr. Dhond, learned Senior Advocate for USVPL in appeal, submits that in his 74 - page judgment the learned Single Judge was materially in error on several distinct aspects. First, he did not properly appreciate the defence of 'truth' taken by USVPL. Second, the learned Single Judge incorrectly held that USVPL's products and the Plaintiffs' products were incomparable. Third, the learned Single Judge ought to have delivered an authoritative pronouncement on the law in regard to the limits of what is or is not permissible in what we will call comparative advertising campaigns. By this, we mean advertisements for products where rival products are juxtaposed and set one against the other, with the advertiser making claims in regard to one and purporting to show how it is superior to the other products.

4. Mr. Dhond also submits that the result of the impugned order is far - reaching. It constitutes an unconscionable restraint on the right to commercial free speech and expression available to advertisers. This kind of a restraint, he submits, is excessive and the law is settled that if there is to be a restraint on such a right, it has to be minimally restrictive.

5. Before we consider the submissions advanced, we set before us ourselves a reminder of the governing jurisprudential framework within which an appellate Court must function especially when dealing with an interim order. This was settled a very long time ago by the Supreme Court in Wander Limited v. Antox India Private Limited 1990 Supp SCC 727 . In paragraph 14, the Supreme Court said:
'14. The appeals before the Division Bench were against the exercise of discretion by the Single Judge. In such appeals, the Appellate Court will not interfere with the exercise of discretion of the court of first instance and substitute its own discretion except where the discretion has been shown to have been exercised arbitrarily, or capriciously or perversely or where the court had ignored the settled principles of law regulating grant or refusal of interlocutory injunctions. An appeal against exercise of discretion is said to be an appeal on principle. Appellate Court will not reassess the material and seek to reach a conclusion different from the one reached by the court below if the one reached by the court was























































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