High Court of Delhi
BADAR DURREZ AHMED & VIBHU BAKHRU, JJ.
World Wrestling Entertainment, Inc.
Versus
M/s. Reshma Collection & Others
FAO(OS). No. 506 of 2013 & CM Nos. 17627 & 18606 of 2013
Decided On: 15-10-2014
Jurisdiction - Trademarks and Copyright - Section 134(2) of the Trademarks Act, 1999 and Section 62(2) of the Copyright Act, 1957 - The court examined the meaning of 'carries on business' in the context of web-based business models and transactions conducted over the internet. The appellant/plaintiff claimed jurisdiction based on the provisions of Section 134(2) of the Trademarks Act, 1999 and Section 62(2) of the Copyright Act, 1957, asserting that it carries on business within the territorial limits of the court. The court analyzed the legal principles established in Dhodha House v. S.K. Maingi and Bhagwan Goverdhandas Kedia v. Girdharilal Parshottamdas & Co., and considered the impact of e-commerce and business over the internet on the interpretation of 'carries on business'. The court concluded that, based on the averments made in the plaint, the appellant/plaintiff would be regarded as carrying on business in Delhi within the meaning of the expression under Section 134(2) of the Trademarks Act, 1999 and Section 62(2) of the Copyright Act, 1957, and therefore, the Delhi High Court would have jurisdiction to entertain the suit.
Fact of the Case:
The appellant/plaintiff, a company incorporated in the USA, filed a suit seeking permanent injunction based on alleged infringement of its copyright and trademarks, passing off, dilution, rendition of accounts, damages, and delivery up. The defendants, stationed in Mumbai, were alleged to be infringing the appellant/plaintiff's registered trademarks by selling counterfeit goods bearing reproductions of the plaintiff's talents. The learned Single Judge directed the return of the plaint to the appellant/plaintiff, holding that the Delhi High Court would have no territorial jurisdiction to entertain the suit.
Finding of the Court:
The court found that, based on the averments made in the plaint, the appellant/plaintiff would be regarded as carrying on business in Delhi within the meaning of the expression under Section 134(2) of the Trademarks Act, 1999 and Section 62(2) of the Copyright Act, 1957, and therefore, the Delhi High Court would have jurisdiction to entertain the suit. The impugned order directing the return of the plaint was set aside, and the suit was restored to its original number.
Issues: The main issue was to determine whether the appellant/plaintiff carries on business in Delhi within the meaning of the expression under Section 134(2) of the Trademarks Act, 1999 and Section 62(2) of the Copyright Act, 1957, and whether the Delhi High Court would have territorial jurisdiction to entertain the suit.
Ratio Decidendi: The court's decision was based on the interpretation of the expression 'carries on business' in the context of web-based business models and transactions conducted over the internet. It considered the legal principles established in Dhodha House v. S.K. Maingi and Bhagwan Goverdhandas Kedia v. Girdharilal Parshottamdas & Co., and concluded that, based on the averments made in the plaint, the appellant/plaintiff would be regarded as carrying on business in Delhi within the meaning of the expression under Section 134(2) of the Trademarks Act, 1999 and Section 62(2) of the Copyright Act, 1957.
Final Decision: The impugned order directing the return of the plaint was set aside, and the suit was restored to its original number, with the direction that the same be placed before the Roster Bench for further steps therein. The defendants were not precluded from raising the plea of jurisdiction on facts, which could be considered by the court based on the evidence and upon the law explained in the judgment.
Badar Durrez Ahmed, J.
1. This appeal is directed against the order dated 04.10.2013 passed by a learned Single Judge of this Court in CS(OS) 1801/2013, whereby the plaint filed by the appellant/plaintiff was directed to be returned to the appellant/ plaintiff under Order 7 Rule 10 of the Code of Civil Procedure, 1908 (hereinafter referred to as ‘the CPC’), to be presented before a court of competent jurisdiction.
2. The suit had been filed by the appellant/ plaintiff seeking permanent injunction based on alleged infringement of its copyright, infringement of its trademarks, passing off, dilution, rendition of accounts, damages and delivery up etc. It is an admitted position that the appellant/ plaintiff is a company incorporated under the laws of the State of Delaware, United States of America and that all the defendants reside in Mumbai and do not carry on business within the jurisdiction of this Court. The appellant/ plaintiff claimed that this Court has jurisdiction to entertain the said suit on account of the provisions of Section 134(2) of the Trademarks Act, 1999 and Section 62(2) of the Copyright Act, 1957. The specific plea with regard to jurisdiction was made in paragraph 32 of the plaint which reads as under:-
“32. It is submitted that this Hon’ble Court has territorial jurisdiction to entertain and try the present suit under Section 134 (2) of the Trade Marks Act, 1999 and Section 62 (2) of the Copyright Act, 1957 on account of the fact the Plaintiff carries on business within the territorial limits of this Hon'ble court as briefly summarized below:
i. The Plaintiff's programmes, consisting of its various characters including John Cena, Undertaker, Triple H, Randy Orton and Batista are broadcast at Delhi, within the territorial limits of this Hon'ble Court;
ii. The Plaintiffs products, such as its merchandising goods and books, are available within the territorial limits of this Hon'ble Court;
iii. The Plaintiffs goods and services are sold to consumers in Delhi through its websites which can be accessed and operated from all over the country, including from Delhi.”
(underlining added)
3. The appellant/plaintiff is, inter alia, engaged in the development, production and marketing of television programming, pay-per-view programming, live events and the licensing and sale of branded consumer products featuring its well known World Wrestling Entertainment (WWE) brand. The WWE scratch logo and World Wrestling Entertainment are registered trademarks of the appellant/plaintiff worldwide including India. The appellant/plaintiff is also the owner of the copyright of the pictorial representations of World Wrestling Entertainment and WWE Wrestlers and the WWE scratch logo as they appear on various publicity materials and promotional merchandise of the appellant/ plaintiff. The appellant/ plaintiff also has trademark registrations in respect of various WWE talent names and talent slogans such as JOHN CENA, BATISTA, UNDERTAKER, TRIPLE H, RANDY ORTON etc.
4. The appellant/ plaintiff offers a variety of memorabilia including, but not limited to, apparel, posters, calendars, fact books, sunglasses, water bottles, key-rings, DVD’s etc. It has more than 200 licensees distributing its products in 86 countries, including India. It has been averred by the appellant/ plaintiff that it licenses out its well known trademarks and the images/characters to different parties for use on merchandise in a wide range of products.
5. It is the allegation of the appellant/ plaintiff that the defendants, who are stationed at Mumbai, are engaged in the business of manufacture and sale of various forms of garments and apparel, such as T-shirts, wrist bands, caps and other counterfeit goods and garments bearing the reproductions of the plaintiff’s talents. According to the appellant/ plaintiff, the defendants, are infringing the appellant/plaintiff’s registered trademarks. It is alleged that the apparels sold by the defendants bear the imag
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