Citation : 2020 Latest Caselaw 3483 Del
Judgement Date : 22 December, 2020
IN THE HIGH COURT OF DELHI AT NEW DELHI
Judgment delivered on: December 22, 2020
+ CS(COMM) 981/2016, I.A. 16792/2013
FREEMANS MEASURES PVT LTD
..... Plaintiff
Through: Ms. Diva Arora, Adv.
versus
MANKARAN BHANDARI & ORS.
..... Defendants
Through:
CORAM:
HON'BLE MR. JUSTICE V. KAMESWAR RAO
JUDGMENT
V. KAMESWAR RAO, J
1. The present suit has been filed by the plaintiff against the
defendants seeking permanent injunction, restraining infringement of
Registered Design, Infringement of Trade Marks, Copyright passing off,
rendition of accounts and damages, with the following prayers:
"a) An order of permanent injunction restraining the Defendants, its principal officers, servants, agents, representatives, dealers and all others acting for and on its behalf, from making, selling, offering for sale, advertising, directly or indirectly dealing in measuring tapes being an obvious and fraudulent imitation of the designs of the Plaintiffs measuring tapes amounting to infringement of
Plaintiffs registered design Nos. 188502 and/ or 180562 and / or 189251 respectively;
b) an order for permanent injunction restraining the Defendant, its wholesalers, distributors, partners or proprietors, as the case may be, its officers, servants and agents from manufacturing, selling, exporting, importing, offering for sale, distributing, advertising, directly or indirectly dealing in measuring tapes or goods of any description bearing the trademark "Mi-19" and/ or any deceptively similar mark to the Plaintiff's trademarks "Hi- WIDE", "Hi-16", "Hi-19" and/ or "Hi-25", amounting to infringement of the Plaintiff's registered trademark "Hi- WIDE" under Nos. 1009497, "Hi-16" under Nos. 1008739, "Hi-19" under No. 1008740 and "Hi- 25" under No. 1008741 in class 9 respectively;
c) an order for permanent injunction restraining the Defendant, its wholesalers, distributors, partners, or proprietor as the case may be, its officers, servants and agents from using, manufacturing, selling, exporting, importing, offering for sale, distributing, advertising, directly or indirectly dealing in any packaging and/ or label or any material that contains any artistic work with a get up, layout, colour combination, arrangement of features and text that is identical and/ a substantial reproduction of the get up, layout, colour combination, arrangement of features of the artistic work and text of the Plaintiffs "Hi-WIDE" and/or "Hi-16" and/ or "Hi-19" and/ or "Hi-25" and "CENTIFLEX" amounting to infringement of the Plaintiffs copyright therein;
d) an order for permanent injunction restraining the Defendant, its directors, wholesalers, distributors, partners, or proprietor as the case may be, its officers, servants and
agents from manufacturing, selling, exporting, importing, offering for sale, distributing, advertising, directly or indirectly dealing in measuring tapes or other goods bearing trademark "Mi-19" and/ or "CONFLEX" or any deceptively similar mark/label(s) including, but not limited to "Hi- WIDE" and/or "Hi-16" and/or "Hi-19" and/ or "Hi-25" and "CENTIFLEX", including any identical / similar trade dress/packaging as that of the Plaintiff's "Hi-WIDE" and/or "Hi-16" and/or "Hi-19" and/ or "Hi-25" and "CENTIFLEX" or bearing the striking features of the Plaintiffs' measuring tapes so as to misrepresent their products as those of the Plaintiff and from doing any other thing as may cause confusion or deception leading to passing off of the Defendant's goods and business as those of the Plaintiff;
e) For an order for the delivery up on affidavit to the Plaintiffs representative of all the Defendant's inventory of door springs, plates, moulds, dies, blocks, films, negatives and printed matter such as packaging, cartons, stationery, etc. for the purposes of destruction;
f) An order of damages in the sum of Rs. 20,05,000/- in favour of the Plaintiffs and against the Defendant;
g) For an order for rendition of accounts to ascertain the actual profits earned by the defendant by the sales of toothbrushes bearing the impugned design and a decree be passed for the amount found due in favour of the Plaintiffs on such rendition of accounts;
h) For an order for the cost of the proceedings;"
2. The Plaintiff is a company incorporated on November 16, 1984
under the Companies Act, 1956 having its principal place of business and
registered office at GT Road, Jugiana Ludhiana Punjab. Thereafter the
Company became a deemed public company and converted into a public
ltd. company until January 12, 2004 when the Plaintiff was converted into
a Pvt. Ltd. company. The present suit has been filed through Mr. Samir
Nayar as the Constituted Attorney. The Power of Attorney has been filed
along with the suit.
3. Defendant No. 4 is Ambika Overseas incorporated under the
Companies Act, 1956 on April 17, 1996 having its principal place of
business and registered office at Ambika House, Model House Road,
Basti Sheikh, Jalandhar City 144002 Punjab. Defendant No. 1 -
Mankaran Bhandari is the chairman of defendant No. 4 Company and
defendant No. 2 and defendant No. 3 Randhir Bhandari and Sameer
Bhandari respectively are sons of defendant No. 1 and also directors of
defendant No. 4 Company.
4. It is the case of the plaintiff that defendant No. 4 i.e., Ambika
Overseas is an entity engaged in dealing in measuring tapes, tools, etc.
which is claimed to be identical to the plaintiff's registered design number
180562, 188502 & 189251 and in label marks/trade dresses that are a near
identical reproduction of the plaintiff's product packaging/trade
dress/label mark for its goods sold under the well-known trademarks 'Hi-
Wide', 'Hi-16', 'Hi-19', 'Hi-25' and 'CENTIFLEX' respectively.
5. Plaintiff stated that it is one of the first measuring tape
companies in India with roots going back to 1950 and has since been in
the business of supplying high quality tools and products. Plaintiff
company presents itself as being the only Indian Company offering a
comprehensive range of tapes of various models and designs in steel tape
measure, tape rule and fibreglass tape measure.
6. The plaintiff has also stated that it has acquired a major share in
the Indian market due to its high quality of product. Plaintiff has
submitted that it is amongst the few companies to get an EEC approval
which goes to testify that the plaintiff's products are competent in the
International markets and comply with International Quality Standards.
The plaintiff also has an ISO-9001-2008 Certification by the American
Quality Assessors and has established its brand in over 60 countries
around the world. The plaintiff company is also the first Indian company
to obtain the ISI Mark in the measuring tape industry as per IS 1269: Part
1: 1997 and IS 1269: Part 2: 1997.
7. The plaintiff submitted that, in the present case the plaintiff
company has dealt with specially two of its better-known products/
designs which are sold under the mark Hi-16' and 'Fiber Plastika'.
Plaintiff's product Hi-16' is a measuring tape bearing Design Registration
no. 188502 (Exh.PW 1/10) dated March 21, 2002, which has been duly
renewed and is currently valid and is sold under the trademark Hi-16'. The
shape, configuration and surface pattern are distinctive and unique to the
plaintiff's measuring tape sold under the trademark 'Hi-16'. Plaintiff has
another Design registration no. 180562 (Exh.PW 1/12) dated October 12,
1999 (and the same has been duly renewed and is currently valid) for its
Hi-16' product i.e., a measuring tape bearing novel and distinctive
features in shape and configuration.
8. It is the case of the plaintiff that the Design Registration No.
189251 (Exh.PW 1/14) pertains to the 'Fiber Plastika' product. Plaintiff
has also obtained registrations of designs with respect to the parts of the
measuring tapes i.e., the shape and configuration of the Tape Winder.
9. The Plaintiff has stated that it has been using the steel measuring
tape under the design number 180562 since November, 1999 and steal
measuring tape under the design No. 188502 since April, 2002 and the
Fibre Measuring Tapes under design no. 189251 since June 2002. The
plaintiff has stated that they have marketed and promoted the said
products in India and abroad on a substantial scale and have said to have
been met with unprecedented success and further stated that the design of
the aforesaid measuring tapes has come to be exclusively identified with
the plaintiff by the members of the trade and the public in general. The
plaintiff has contended that they have earned substantial good will and
reputation inter alia in the designs of the said measuring tapes; due to its
creation of the said designs, the same have acquired a secondary meaning
in the eyes of the public denoting them as the goods of the plaintiff.
10. Plaintiff has stated that it has well known trademarks i.e., 'Hi'
series of label marks/ trade dress such as 'Hi-Wide', 'Hi-16', 'Hi-19', 'Hi-
25' and 'CENTIFLEX' (Exh.PW 1/19) under Class 9 and stated that the
plaintiff has been manufacturing tapes under the said trademarks and that
these trademarks have been exclusively associated with the plaintiff. It has
stated that the defendants have infringed upon the same, since the
trademarks have used distinctive colour schemes, layout, get up, fonts and
the said label marks/ trade dresses have exclusively been associated with
the plaintiff company's products. Another application numbered 1009498
for registration of the 'Hi-Wide' device/label under class 9 pending before
Registrar of Trade Marks.
11. The plaintiff has stated in the plaint that it has coined the
arbitrary mark 'Hi-Wide' and has been using the same in respect of its
goods since 1999 continuously and extensively. That apart, the plaintiff
also uses a series of marks with the prefix 'Hi' in combination with
various numbers for example 'Hi-16', 'Hi-19' and 'Hi-25' under the
umbrella trademark of the plaintiff company 'GK FML' in respect of its
products. In addition it is stated that common law rights exist in favour of
the plaintiff due to the adoption of innately distinctive trademarks 'Hi-
Wide', 'Hi-16', 'Hi-19' and 'Hi-25', of which the plaintiff has been the
long, extensive, and continuous user of. The plaintiff has also stated that
these trademarks have been duly renewed and are subsisting and has
stated that by virtue of the said registrations the plaintiff has the exclusive
right to use the trademarks in relation to the goods in respect of which the
trademark is registered and seek relief in respect of the infringement of the
registered trademark as provided by the Trademarks Act, 1999
(Trademarks Act for short). The Plaintiff had provided the details of their
registered trademarks, which are reproduced hereunder:
Trademark Class Registration No. Date of Goods
registration
Hi-WIDE 9 1009497 15th May 2001 Measuring tapes,
snap off cutter,
torpedo level and tie
hanger and other
measuring
instruments, falling
in class 9
Hi-16 9 1088739 20th March 2002 Measuring tapes,
snap off cutter,
torpedo level and tie
hanger and other
measuring
instruments, falling
in class
Hi-19 9 1088740 20th March 2002 Measuring tapes,
snap off cutter,
torpedo level and tie
hanger and other
measuring
instruments, falling
in class
Hi-25 9 1088741 20th March 2002 Measuring tapes,
snap off cutter,
torpedo level and tie
hanger and other
measuring
instruments, falling
in class
12. In addition to the aforementioned the plaintiff submitted that it
also used its registered house mark/ label mark i.e. 'GK-FML' on most of
its products, the house mark being 'GK FML AKVN Enterprise' registered
under No.1369625 in Class 9 and label mark 'GK FML Standard
Measures' also under Class 9.
13. Plaintiff stated that it had been using the label mark/trade dress
in respect of its products under the registered trademark 'Hi-Wide' since
1999 along with the series of label marks / trade dress under the registered
trademark 'Hi-16', 'Hi-19' and 'Hi-25' in respect of its products with
minor/ slight modifications/ variations in the label mark /trade dress in
respect of variants of measuring tapes in order to indicate size, width, etc.
The applications for the said label marks and its variants are pending
before the Registrar of Trade Marks.
14. Plaintiff also claimed that it has copyright, as per section 2 (c) of
the Copyright Act 1957 (hereinafter Copyright Act) over its trade/label
mark and trade dress, the colour combination, layout, get up and the
lettering style used on the logo, i.e., white base along with black and white
alphabets, font style, letters in black and white colour and words written in
English and Urdu bearing plaintiff's trademark 'Hi-Wide', 'Hi-16', 'Hi-
19' and 'Hi-25'.
15. Plaintiff has also claimed to have been using the mark
'CENTIFLEX' since the year 2000. The plaintiff also claims that the
product bearing the mark 'CENTIFLEX' bearing colour combination,
layout, get up and lettering style used on the logo, i.e., yellow base,
orange, blue and white alphabets, bearing the trademark 'CENTIFLEX'
constitute original artistic work under section 2 (c) of the Copyright Act.
16. The plaintiff in the plaint has submitted its sales' figures which
have grown from Rs.1,48,000 in the year 2003-04 to Rs.4,04,030 in the
year 2010-2011. The plaintiff has spent over a sum of Rs.7,64,000 till date
on advertisement and promotion of its said products.
17. The plaintiff claimed that measuring tapes under the trademarks
'Hi-Wide', 'Hi-16', 'Hi-19', 'Hi-25' and 'CENTIFLEX' bearing the
unique and distinctive label marks/trade dress respectively are sold
throughout India and overseas and have acquired reputation and goodwill,
due to the excellent quality, distinctive packaging, colour combination,
stylised manner of writing, etc. The plaintiff submitted that as a result of
continuous and extensive use of both the said label mark/ trade dresses
over a long period of time spanning a wide geographical area coupled
with promotion and publicity the said trademarks enjoy a reputation and
goodwill in the market and have acquired the status of a 'well known'
trademark and that the products under the said marks are associated solely
and exclusively with the plaintiff and no one, else by the members of the
trade and public in general.
18. The plaintiff has submitted that the cause of action arose in the
first week of March 2012, when the plaintiff was shocked to learn of a
label mark/ trade dress of defendant No. 4's products bearing the mark
and label of 'Mi-19' with respect to measuring tapes which the plaintiff
claims to be deceptively similar to the Plaintiff's 'Hi-Wide', 'Hi-16', 'Hi-
19' and 'Hi-25'; the plaintiff stated that the defendants had made
minor/insignificant changes in the impugned label. Thereafter plaintiff
submitted that another cause of action arose when they came across
defendant No. 4's advertisement published in the Yellow Pages wherein
the defendants had shown steel measuring tapes identical to the plaintiff's
registered design numbers 188502 and 180562 used under the mark 'Hi-
16'; additionally, submitted that the defendants were also copying
plaintiff's registered design under number 189251 the mark 'Fiber
Plastika'. The plaintiff has further taken a stand in the plaint that the cause
of action is present and subsisting.
19. Furthermore, it was also submitted by the plaintiff, that the label
mark/trade dress of defendants' products under the mark 'CONFLEX' is
also infringing the plaintiff's label mark/trade dress of its measuring tapes
bearing the mark 'CENTIFLEX'. The plaintiff had also contended that the
defendant had no plausible explanation to adopt such deceptively similar
marks and label marks/trade dress but with a mala fide intention to come
close to the plaintiff's product and were also infringing and passing off
various registered designs, trademarks and its copyright, in violation of
the plaintiff's intellectual property.
20. The plaintiff stated that since it had believed that the defendants
had no plausible explanation to adopt such a deceptively similar mark/
trade dress, and it has done so with mala fide intention in order to ride on
the plaintiff's goodwill. In the month of April 2012, plaintiff is stated to
have commissioned an investigator in order to find out about the activities
of the defendants. The investigator is stated to have visited the shops of
defendants' dealer i.e., Dewan Chand Madan Lal & Sons located at
Hakim Baqa Street, Hauz Kazi, Delhi; where the investigator met one
Neeraj Aggarwal, who stated that they are dealers/agents of the defendants
and that they sell products in Delhi, the investigator was also stated to
have been informed about the launch of their measuring tapes in about one
or two months. The plaintiff has also filed the visiting cards and brochures
herewith.
21. The plaintiff has argued that it is clear to any observer when
judged solely by the eye, the design of the defendants' product under the
mark 'Mi-19' is a fraudulent and obvious imitation of the plaintiff's
products under the trademark 'Hi-16' which are subject matter of
registered designs and stated that the defendants have tried to imitate the
plaintiff's registered design nos. 188502 and 180562. The plaintiff further
stated when solely judged by the eye, the design of defendants' product
under the trademark 'Fibertex' is a also a fraudulent imitation of the
registered design of the plaintiff's products sold under the trademark
'Fiber Plastika' which is also a matter of a registered design No 189251
and therefore stated that the use of same shape, configuration, surface
pattern, composition of lines, colours is too similar to be a mere
coincidence, it was stated that the distinctive pattern is also a key factor in
the consumer's decision to purchase the products. The plaintiff then goes
on to argue that there is no difference between, any of the essential
features of the plaintiff's registered designs and that of the defendants'
impugned product designs and that this amounts to an infringement of
plaintiff's prior statutory rights. It was also contended that this was an
attempt by the defendants to borrow the fruit of plaintiff's labour and ride
on their goodwill and reputation in order to divert to itself the business
generated by success of the plaintiff's products which the plaintiff stated
amounted to infringement of their design as well as passing off its
products as those of the plaintiff.
22. The plaintiff argued that this adoption by the defendants of the
marks and labels/ trade dress 'Mi-19' and 'CONFLEX' which are
confusingly and deceptively similar trademarks/label marks to the
plaintiff's trademarks/label marks 'Hi-WIDE', 'Hi-16', 'Hi-19' and 'Hi-
25' and 'CENTIFLEX' are rendered even more dishonest as the
trade/dress/get up etc. are absolutely identical to that of the plaintiff's
marks. The plaintiff has argued that there is a clear case of infringement of
trademark and copyright along with passing off and dilution. The
argument advanced by the plaintiff has been that the slavish imitation and
reproduction of the overall get up, layout, arrangement of features, colour
schemes etc. is too similar to be a coincidence and appears as if an attempt
is made out to counterfeit the plaintiff's aforementioned trademarks.
23. It was argued by the plaintiff that the colour combination, get up
of and the lettering style, i.e. white base, font style and lettering of the
words in black and white, red rectangles on the logo, 'Hi-Wide' and/ or
'Hi-16' and/ or 'Hi-19' and/ or 'Hi-25' in black colour renders the said
label as an original artistic work within the meaning of Section 2 (c) of the
Copyright Act and that the plaintiff being the owner of such copyright in
the aforesaid labels and is entitled to all the exclusive rights that flow from
such ownership as set out in section 14 of the Copyright Act. The plaintiff
argues, similarly the copyright of artistic work with the mark
'CENTIFLEX' comprising of the colour combination, layout, get up of
and the lettering style, i.e., yellow base, font style and lettering of the
words in yellow, black and white, belongs to the plaintiff.
24. It is the case of the plaintiff that the features of the designs of the
plaintiff's measuring tapes are non-functional and that the said designs
have come to be exclusively associated with the plaintiff and are identified
by the customers as belonging to the plaintiff only, it was also submitted
that the distinctive pattern is also a key factor in the consumer's decision
to purchase the products.
25. It is the case of the plaintiff that there is no difference between
any of the essential features of the plaintiff's registered designs and that of
the defendants' impugned product designs. It has been submitted that the
said designs have come to be exclusively be associated with the plaintiff
and by replicating the plaintiff's novel shaped measuring tapes made of
steel and fibre; the defendants have tried to divert business through
misrepresentation. The plaintiff has argued that the defendants have
imitated the overall get up, layout, arrangement of features, colour
scheme, etc. Which they state is not a mere coincidence and that the
defendants have no reason to adopt such labels or marks. Further it has
been submitted that products of the plaintiff and the defendants are sold in
markets in rural and semi-rural areas where people are not educated and
hence confusion is bound to occur between the products of the plaintiff
and defendants. It has been further argued, that the infringement of the
plaintiff's rights by the defendants is itself a ground to show that huge
pecuniary damage is likely to be caused to the plaintiff's business as a
result of defendant's activities.
26. Plaintiff has stated in the plaint that the defendants have not yet
launched their infringing products and hence the present suit is in quia
timet in nature and states that if the defendant is allowed to go unchecked,
they would acquire sufficient production capacity to manufacture and
launch products bearing the designs of plaintiff's products. The plaintiff
apprehends the usage of designs No. 188502, 180562 and 189251 under
the proposed marks and labels/trade dress 'Mi-19' and 'CONFLEX'. The
plaintiff admits that to the best of his knowledge that the defendants have
not put the impugned designs, label marks/trade dress and marks 'Mi-19'
and 'CONFLEX' to any use in any manner, whatsoever in India and
further states that the equity is in favour of the plaintiff and that the
defendants would not be harmed or prejudiced by an order of this court
wherein the defendants are restrained from using the marks 'Mi-19' and
'CONFLEX' before their launch or commencement of manufacture and
sale of measuring tapes under the said designs, marks or labels.
27. The defendants in their written statement, the amendment of
which was allowed vide order dated July 16, 2013 have stated that
defendant No. 4 manufactures over 400 types of tools e.g., hand-tools,
non-sparking tools, power-tools, measuring tapes, tool kits, toolboxes,
tool-chests, tool-cabinets, tool-trolley, etc. and has established itself in the
Indian trade market and also supplies goods to over 80 countries and that
defendant No. 4 had established itself in a substantial position in the
domestic and international market.
28. The defendants have stated that in the month of September 2011,
defendant No. 4 got into an agreement with M/s. APT Manufacturers Pvt.
Ltd. based in Ludhiana, wherein all the machinery along with dies, jigs
and fixtures were bought over by defendant no. 4 and it was also agreed
that M/s. APT Manufacturers Pvt. Ltd. would hand over the plant and
machinery in running condition; M/s. APT Manufacturers Pvt. Ltd.,
defendant No. 4 avers was also a well-established name in the hand tool
industry.
29. It is the case of the defendants that they have never used the
mark 'CONFLEX' for any of their products and neither they have any
intention to use that mark in the future, therefore the question of
infringement of the plaintiff's mark 'CENTIFLEX' does not arise and
therefore any action of passing off holds no merit.
30. Defendant No. 4 denies that the measuring tapes of the
defendant No. 4 are identical to that of plaintiff's registered design nos.
180562, 188502 & 189251 respectively and also denies that the trade
dress of the products of defendant No. 4 are nearly identical reproduction
of the plaintiff's product packaging/ trade dress/ label mark for its goods
sold under the trademarks 'Hi-Wide', 'Hi-16', 'Hi-19' and 'Hi-25' and
'CENTIFLEX'. Moreover, it was stated that the designs of the tools bear
no resemblance to plaintiff's registered designs and the same are distinct.
The defendants have repeatedly stated in their written statement that they
have never used and do not intend to use the marks 'Mi-19' and
'CONFLEX'. Hence the all allegations of infringement of trademark,
design and copyright made by the plaintiff against the defendants are
baseless and that the defendants are using the marks namely 'A-13', 'A-
16', 'A-19' where 'A' stands for 'Ambika' and denominations 13/16/19
stands for the width of the steel tape. These marks are itself unique and
distinct and in appearance and bear no resemblance to that of the
plaintiff's marks and labels and the question of infringement, passing off,
dilution or tarnishing holds no merit.
31. While continuously denying the contents of the plaint the
defendants state that M/s. APT Manufacturers Pvt. Ltd., had been using
the said label/mark trade dress since 2005, whose machinery, dies, jigs,
were bought over by defendant No.4 through assignment deed. M/s. APT
Manufacturers Pvt. Ltd. had filed an application before Registrar of Trade
Marks for registration of mark 'FIBERTEX' and further stated that the
term itself had been coined by M/s. APT Manufacturers Pvt. Ltd.
32. The defendants submitted that shape of the measuring tape
manufactured by the plaintiff is not novel or original and that the shape of
the measuring tape manufactured by the plaintiff has been used by every
other measuring tape manufacturer in every part of the world. Therefore,
the shape of measuring tape cannot be solely attributed to the plaintiff's
product and denies that the defendants have tried to ride on the goodwill
of the plaintiff. The defendants have also denied using the steel tapes
under design No. 180562, 188502 and Fibre measuring tapes under design
No.189251.
33. The defendants have stated that they have never launched the
allegedly infringing products. They have also stated, they would be
harmed and prejudiced by an order of this court since defendants have
never used the impugned mark. The defendants had no knowledge of the
products or marks of the plaintiff and moreover the defendants have been
using their own marks 'A-13', 'A-16', 'A-19' where 'A' stands for
'Ambika' and the label mark/ trade dress bear absolutely no visual
similarities with that of the plaintiff's. A person of ordinary intelligence
and imperfect recollection would not misunderstand the defendants'
marks and labels marks/trade dress to that of the plaintiff. Even though the
products of the plaintiff's and the defendant's products are sold in the
markets of rural and semi-rural areas where people are not educated,
confusion would not occur since the products bear no visual similarities
and the defendant No.4 also holds a reputation in the market.
34. The defendants have stated that the impugned products have not
been used by the defendants and therefore there is no question of a huge
undeserved profits being made by the defendants by riding on the
plaintiff's goodwill. It has also been stated that there is also no
incalculable loss or damages caused to the plaintiff's business, goodwill,
reputation either in India or abroad. On the contrary this suit has been
filed only to harass the defendants and that the plaintiff has also failed to
show how the manufacture or sale of the product would cause any damage
to the plaintiff.
35. In the instant case the defendants have stated to have launched
tapes under its mark 'FIBERTEX' but not steel tapes and hence there
would be no question of losses caused to the plaintiff, and stated that the
products themselves bear no resemblance to each other and the question of
deceptive similarity has no merit. Defendants further pray that the present
suit be dismissed on account of defendants not using the impugned marks
'Mi-19' and 'CONFLEX' including no intention of using them in the
future.
36. The plaintiff thereafter filed a replication to the written
statement and explained relationship between the plaintiff and M/s. APT
Manufacturers Pvt. Ltd. wherein the plaintiff denied the agreement
entered in September, 2011 between defendant No.4 and M/s. APT
Manufacturers Pvt. Ltd. based in Ludhiana where all the machinery along
with dies, jigs and fixtures were bought over by defendant No.4. Plaintiff
also stated that M/s. APT Manufactures Pvt. Ltd. did not have any right to
license/assign the trademark or designs to the defendants.
37. The plaintiff stated that the plaintiff company itself was
previously owned by family members of a joint and undivided Hindu
Family amongst whom some disputes had arisen and the matter was
referred to the Company Law Board. The Company Law Board as per
order dated November 04, 2008 based on the Memorandum of
Understanding, dated October 16, 2008 ('MoU' hereinafter) executed
between Mr. Samir Nayar (MD of plaintiff company) and Mr. Navneet
Nayar of M/s. APT Manufacturers Pvt. Ltd. settled their disputes which
included the use of the trademark and designs of the plaintiff and
restrictions thereof. The plaintiff stated that aforesaid MoU clearly
provided for the use of trademark and designs of the plaintiff by M/s. APT
Manufacturers Pvt. Ltd.. Wherein M/s. APT Manufacturers Pvt. Ltd. were
allowed to use the following brands, designs as long as the control,
management and majority shareholding of APT Manufacturers Pvt. Ltd.
remains with Mr. Navneet Nayar:
i. Hi-16 with Lock 3M ii. Record iii. Record 676 iv. PVC Engineer v. Engineer Steel
38. The plaintiff also stated that the MoU also provides that in case
of majority control, management and majority shareholding of M/s. APT
Manufacturers Pvt. Ltd. does not remain with Mr. Navneet Nayar or his
family members and therefore the common brand name, trademarks and
the designs of the models mentioned above will not be used by M/s. APT
Manufacturers Pvt. Ltd.. Plaintiff also stated that the assignment and
license related to the above items shall stand terminated and same shall
revert to the plaintiff exclusively and that in such a case, M/s. APT
Manufacturers Pvt. Ltd. would not have any right whatsoever in relation
to above brand name, trademarks and designs of the models which will
exclusively belong to the plaintiff. The plaintiff had contended that the
parties also entered into a license agreement dated September 01, 2004
whereby the plaintiff had granted a non-transferable irrevocable and
exclusive license to M/s. APT Manufactures Pvt. Ltd. to use certain
trademark and design Nos. 188502 and 180562. The plaintiff stated that
the unauthorised use of the plaintiff's registered designs being No.
188502, 180562 and 189251 by the defendants amounts to infringement of
the plaintiff's registered designs and the plaintiff has argued that therefore
M/s. APT Manufacturers Pvt. Ltd. did not have any right to transfer/
assign/ license any of the trademarks or the designs of measuring tapes
including but not limited to 188502, 180562 and 189251 to any third party
whatsoever and the defendants cannot claim any right from M/s. APT
Manufacturers Pvt. Ltd.
39. Plaintiff stated that, the defendant's statement that they have
absolutely no intention to use the said mark in the future may be recorded.
It was submitted that the defendants had published an advertisement in the
magazine the Yellow Pages bearing products with the impugned designs,
label marks and marks 'Mi-19' and 'CONFLEX'. Further also submitted
that a photograph of the defendant's mark 'CONFLEX' had also been filed
along with the Yellow Pages advertisement. Plaintiff stated that it was
evident from the above that the defendants have used the mark
'CONFLEX' and were guilty of deliberately making contrary statements
in order to mislead the court.
40. The plaintiff submitted that the label mark/trade dress of the
products of the defendants under the mark 'CONFLEX' is also infringing
the plaintiff's label mark/ trade dress of its measuring tapes bearing mark
'CENTIFLEX'. Further it was submitted that the defendants have only
changed the Mark 'Mi-19' to 'A-19' and the label/trade dress of its
products 'Mi-19' after order dated May 14, 2012. The plaintiff submitted
that prior to the aforesaid order, the defendants were using substantially
similar trade dress/ labels for its products and nearly identical marks,
photographs of which have been filed; even the modified trademark and
trade/dress label is deceptively similar to that of the plaintiff.
41. The plaintiff contended that defendants were using the mark
'Mi-19' prior to the order dated May 14, 2012 and it was only after the
said order the defendants changed their mark from 'Mi-19' to 'A-19' and
changed the trade dress/ label of its measuring tapes. The plaintiff
reiterated that even the modified/amended trademark and trade dress/ label
is deceptively similar to that the plaintiff's trademarks and trade dress and
label.
42. The plaintiff contests the averment made by the defendants
wherein they have denied using the marks 'Mi-19' and 'CONFLEX' since
they published advertisements in the magazine Yellow Pages bearing the
products with the impugned designs and requested that the statement of
the defendants stating that they would abstain from future use may be
recorded. It was further submitted that M/s. APT Manufacturers Pvt. Ltd.
did not have any right to license/ assign any trademark or designs that
belong to the plaintiff to the defendants. Further it was submitted that the
design of the product under the mark 'A-19' is identical to the design of
the plaintiff's product under the mark 'Hi-16'.
43. Plaintiff stated that the registered designs of the plaintiff Nos.
180562, 188502 & 189251 were not common to trade and that there are
numerous parties which are using different trade designs in respect of
measuring tapes and that photographs of third parties' designs have been
filed in these proceedings and that plaintiff had taken action against third
parties who violated its intellectual property rights.
44. It was the plaintiff's submission that M/s. APT Manufacturers
Pvt. Ltd. did not have any right whatsoever to assign/license any brand
name, trademarks and designs of the models and the said trademarks and
designs belong solely and exclusively to the plaintiffs. Therefore, the
defendants cannot claim any right whatsoever from M/s. APT
Manufacturers Pvt. Ltd.; it is the case of the plaintiff that only the
plaintiff's measuring tapes have this particular type of shape and
configuration and additionally, a comparison of the plaintiff's products
which are the subject matter of prior registered designs and the
defendant's impugned products are identical in all the respects and the
defendants have made every effort to imitate the plaintiff's registered
designs and the same cannot be a mere coincidence. It is evident that
impugned product of the defendant under the mark 'A-16' and
'FIBERTEX' constitutes an infringement of prior statutory rights vested in
the plaintiff with respect to registered designs nos. 180562, 188502 and
189251.
45. Plaintiff stated that if the defendants had never launched the
infringing products and had never used the impugned marks, then the
questions of the defendants being prejudiced by an order of this Court
would not arise. Plaintiff states that it is highly unlikely that the
defendants were not aware of plaintiff and its products, since the plaintiff
has been in business since the 1950s and the defendants are in the same
industry for 35 years. It was submitted that the defendants had adopted the
nearly identical marks and trade dress/solely with a view to trade upon the
vast repute of the plaintiff's trademarks i.e., trademarks 'Hi-Wide', 'Hi-
16', 'Hi-19', 'Hi-25' and 'CENTIFLEX'.
46. As per order dated July 27, 2016 the following issues were
framed by this Court:
I. Whether the Plaintiff is the registered property of the designs of its measuring tapes registered under No.188502 dated 21st March 2002; registration No.180562 dated 12th October 1999 and registration No.189251 dated 19th June, 2002? OPP
II. Whether the Plaintiff is the registered proprietor of the trademark/label marks 'Hi-WIDE', 'Hi-19' and 'Hi-25'? OPP
III. Whether the Plaintiff is the proprietor of the trademark 'CENTIFLEX'? OPP
IV. Whether the Plaintiff is the owner of the copyright in the artistic work and literary work/text of the Plaintiff's products sold under the trademarks 'Hi-WIDE', 'Hi-16', 'Hi-19', 'Hi25' and 'CENTIFLEX'? OPP
V. Whether the Plaintiff's designs of its measuring tapes sold registered under No.188502 dated 21st March 2002; registration No.180562 dated 12th October 1999 & registration No.189251 dated 19th June 2002 respectively are not new, novel and has been prior published before the grant of the said registrations?
OPD
VI. Whether the designs of the measuring tapes manufactured by the Defendants bear resemblance to the Plaintiff's registered designs as enumerated in the plaint? OPP
VII. Whether the trademarks/label marks of the measuring tapes manufactured by the Defendants are similar to the Plaintiff's trade dress/label mark in respect of the Plaintiff's measuring tapes sold under the marks 'Hi-WIDE' and/or 'Hi-16' and/or 'Hi-19' and/or 'Hi-25' and 'CENTIFLEX'? OPP
VIII. Whether the Defendants' use of a design of a measuring tape under the mark 'Mi-19' is identical/substantially similar to the Plaintiff's prior registered design under No.188502 dated 21 st March 2002 and registration No.180562 dated 12thOctober 1999 constitutes infringement of the Plaintiff's registered design under No.188502 dated 21 st March 2002 and registration No.180562 dated 12th October 1999 and if so, to what effect? OPP
IX. Whether the Defendants' use of a design of a measuring tape under the mark 'Fibertex' is identical/substantially similar to the Plaintiff's prior registered design under No.189251 dated 19th June 2002 constitutes infringement of the Plaintiff's registered design under No.189251 dated 19th June 2002 and if so, to what effect? OPP
X. Whether the use of marks 'Mi-19' by the Defendants and/or amounts to infringement of the Plaintiff's registered trademarks 'Hi-WIDE', ' Hi-16', 'Hi-19' and 'Hi-25'? OPP
XI. Whether the Defendants have infringed the plaintiff's copyright in respect of trademarks 'Hi-WIDE' and/or 'Hi-16' and/or 'Hi- 19' and/or 'Hi-25' and 'CENTIFLEX'? OPP
XII. Whether the Defendants' use of the design 'Mi-19' and/or 'Fibertex' and the trademarks 'Mi-19' and/or 'CONFLEX' amounts to passing off their goods and services of the plaintiff? OPP
XIII. Whether the use of the marks 'Mi-19' and 'CONFLEX' or any deceptively similar marks that of the Plaintiff's trademarks/label marks, 'Hi-WIDE' and/or 'Hi-16' and/or Hi-19' and/or 'Hi-25' and 'CENTIFLEX' by the Defendants amounts to passing off their goods and services as that of the Plaintiffs? OPP
XIV. Reliefs, if any? OPP
47. Having heard the learned counsel for the plaintiff and perused
the record. At the outset, I may state that the defendants were proceeded
ex-parte after framing of the issues. The plaintiff's witness has filed his
examination-in-chief (PW-1) and proved on record, the documents which
are exhibited as Exh.PW-1/1 to PW-1/4 and PW-1/6 to PW-1/34 with one
document marked X2.
48. I may also state that during the proceedings in the instant suit, as
per order dated September 02, 2013 in I.A.13741/2013, it was clarified on
behalf of the plaintiff that the plaintiff has not made any prayer with regard
to the trademark 'FIBER PLASTIKA' being used by the defendants for
their products. It was also stated that they are not opposed to the use of the
terms 'FIBERTEX' by the defendants.
49. The examination-in-chief of the plaintiff's witness has gone
unrebutted. The witness has proved the affidavit and the documents as
exhibited along with affidavit a reference of which is made above. My
issue wise findings are as under:
Issue No. I
50. In regard to this issue, the plaintiff has exhibited the registration
of the designs of its measuring tapes under No.188502 dated March 21,
2002 (Exh.PW-1/10); registration No.180562 dated October 12, 1999
(Exh.PW-1/12) and registration No.189251 dated June 19, 2002 (Exh.PW-
1/14). The registration of the designs through exhibits being unrebutted by
the defendants, the registration of designs vide registration Nos. 188502,
180562 and 189251 stands duly proved. This issue is decided in favour of
the plaintiff.
Issue No. II
51. In support of this issue, the plaintiff has exhibited trademarks/
label marks registration with respect to 'Hi-WIDE', 'Hi-16', 'Hi-25' by
way of Exh.PW-1/22 (Colly) (at pages 37, 39 and 41 of the documents).
The said documents in the absence of any cross examination, stands
proved. This issue is decided in favour of the plaintiff.
Issue No. III
52. Insofar as the issue No. III is concerned, the plaintiff has not
filed on record any document with regard to the registration of the mark
'CENTIFLEX' in its favour but has placed a document which is Exh.PW-
1/24 wherein the marks 'CENTIFLEX' has been appropriately depicted. In
the absence of any cross examination, it is proved that the plaintiff is the
proprietor of the trademark 'CENTIFLEX'. This issue is decided in favour
of the plaintiff.
Issue No. IV
53. Insofar as the issue No. IV is concerned, learned counsel for the
plaintiff has stated that the plaintiff is the owner of the copyright in the
trademarks and the artistic work / text of the plaintiff product sold under
the trademark 'Hi-WIDE' (Exh.PW-1/21), 'Hi-16' (Exh.PW-1/13), 'Hi-25'
(Exh.PW-1/21) and 'CENTIFLEX' (Exh.PW-1/24). The said documents
having not been contested by the defendants, it is proved on record that the
plaintiff has copyright in the works comprising of the artistic work / text
under the trademarks 'Hi-WIDE', 'Hi-16', 'Hi-25' and 'CENTIFLEX'.
This issue is decided in favour of the plaintiff.
Issue No. V
54. In support of the designs in measuring tapes the plaintiff has
relied upon the registration certificates depicting registration with Nos.
188502 dated March 21, 2002 (PW-1/10), 180562 dated October 12, 1999
(PW-1/12) and 189251 dated June 19, 2002 (Exh.PW-1/14). It is clear that
the designs being new and novel and have been registered. The onus being
on the defendants, they have not appeared to prove this issue that designs
are not novel. This issue is decided against the defendants.
Issue Nos. VI and VIII
55. On a comparison of the documents at Exh.PW1/26 (defendants
design Mi-19) with Exh.PW-1/10 (plaintiff's design) and the Exh.P1
(defendants' design) with Exh.PW-1/15 (plaintiff's design) and document
P3, it is clear that the measuring tapes manufactured by the defendants at
Exh.1/26 and Exh.P1 bears resemblance with the registered design of the
plaintiff. But the design with regard to the product of the defendants
bearing trade / label mark 'CONFLEX' at Exh.P3 does not resemble the
design of the plaintiff's product at Exh.PW-1/24. These issues are partially
decided in favour of the plaintiff.
Issue No.VII
56. On a comparison of the documents at Exh.PW-1/11 with
Exh.PW-1/26, Exh.PW-1/13 with Exh.P2 and Exh.PW-1/21 with Exh.P2,
it is clear that the trademarks of the measuring tapes manufactured by the
defendants are similar to the trademarks / label marks in respect of the
plaintiff's measuring tapes sold under the marks 'Hi-WIDE', 'Hi-16' and
'Hi-25'.
57. Insofar as the trademark/label mark CENTIFLEX is concerned,
on a comparison of documents, Exh.PW-1/24 and Exh.P3, I do not see any
similarity in the trademark / label mark. To the aforesaid extent, this issue
is decided in favour of the plaintiff.
Issue No. IX
58. On a comparison of the documents at Exh.PW-1/15 (plaintiff's
product) with the trademark 'FIBERPLASTIKA' and the document Exh.P1
which is defendants' product, under the trade name 'FIBERTEX', it is clear
that the design of the defendants is similar/identical to the plaintiff prior
registered design under registration No.189251 dated June 19, 2002
(Exh.PW-1/14) and constitute infringement of the plaintiff's registered
design under the said registration no. This issue is decided in favour of the
plaintiff.
Issue No. X-XIII
59. It is the case of the plaintiff and so stated in the affidavit filed by
plaintiff's witness which is unrebutted, that the plaintiff trades in the well-
known trade/label marks i.e. 'Hi' series such as 'Hi-WIDE', 'Hi-16', 'Hi-
19', 'Hi-25' and 'CENTIFLEX' and that they had been manufacturing and
selling its steel measuring tapes under the trademarks 'Hi-WIDE', 'Hi-16',
'Hi-19', 'Hi-25' and 'CENTIFLEX' and that the said marks are used in
distinctive colour schemes, layout, get up, fonts and the said label marks
/trade dresses and the same have come to be exclusively associated with
the plaintiff company's products. It was the plaintiff's submission that the
mark 'Hi-WIDE' is a coined and an arbitrary mark and that they have been
using the said trademark in respect of its goods since 1999 continuously;
additionally, plaintiff also uses a series of trademarks with the prefix 'Hi'
in combination with various numbers such as 'Hi-16', 'Hi-19' and 'Hi-25'
under the trademarks of the plaintiff company 'GK FML'. Exh.P6 price list
of the plaintiff admitted by the defendant.
60. The plaintiff buttresses his arguments on the combined long,
extensive and continuous user in addition to being a registered proprietor
of the trademarks 'Hi-WIDE', 'Hi-16', 'Hi-19' and 'Hi-25' in India, in this
regard the plaintiff has relied on the trademark registrations as exhibited as
Exh.PW 1/19. The plaintiff's witness also stated in the affidavit that the
plaintiff company had filed an application for registration of 'Hi-WIDE'
device/label mark before the Registrar of Trade Marks dated May 15, 2001
in class 9, which was pending before the Registrar of Trade Marks and
extract from the trademark journal no. 1339 dated February 1 st, 2006 has
been marked as Exh.PW 1/20.
61. It is also stated in the affidavit that the plaintiff uses its
registered house mark/ label mark 'GK-FML' on most of its products;
according to the plaintiff's witness the said house mark / devise mark 'GK
FML AKVN' is also registered as under No. 1369625 in class 9 as well as
the label mark GK FML Standard Measures under no. 1426203 also in
class 9. The label mark/ trade dress in respect of its products 'Hi-WIDE',
'Hi-16' and 'Hi-25' have been exhibited as Exh.PW 1/21.
62. It was stated that the plaintiff's 'Hi-WIDE' trademark/label mark
and trade dress, the colour combination, layout, get up and lettering style
used in the logo, i.e., white base, black and white alphabets, font style and
letters in black and white colour, words written in English and Urdu
bearing the plaintiff's mark 'Hi-WIDE' and/or 'Hi-16' and 'Hi-19' and/or
'Hi-25' constitute an original artistic work within the meaning of the
Copyright Act. Exh.PW1/23 original packaging of plaintiff's product 'Hi-
WIDE'.
63. The plaintiff's witness has stated that the mark 'CENTIFLEX'
and the label mark/ trade dress in respect of its products under the mark
'CENTIFLEX' have been in use by the plaintiff since the year 2000. The
plaintiff's products sold under the mark 'CENTIFLEX' bearing the colour
combination, layout, get up and the lettering style used on the logo, i.e.,
yellow base orange, blue and white alphabets, font style and letters in
white, yellow and white colour bearing the trademark 'CENTIFLEX'
constitute an original artistic work within the meaning of the Copyright
Act which has been exhibited as Exh.PW 1/24.
64. In support of the statement that the products of the plaintiff have
acquired substantial reputation and goodwill the plaintiff has submitted the
total amount spent on advertisement and promotion of its product 'Hi-16'
during the period from 2009-10 till 2013-14, which has been marked as
Exh.PW 1/25.
65. As per the plaintiff's witness, the measuring tapes under the
trademarks 'Hi-WIDE', 'Hi-16', 'Hi-19', 'Hi-25' and 'CENTIFLEX'
bearing the unique and distinctive label marks / trade dress respectively are
sold throughout India and abroad and have acquired an enviable reputation
and goodwill due to its excellent quality, distinctive packaging, colour
combination, stylized manner of writing, etc. It was also his submission
that the measuring tapes bearing the unique and distinctive label marks/
trade dresses are the highest selling brands of the plaintiff and are
considered as the largest selling tapes in India. According to him, as a
result of continuous and extensive use the plaintiff's label marks / trade
dresses coupled with promotion and publicity the said trademarks have
acquired the status of a 'well-known' trademark and that the products 'Hi-
WIDE', 'Hi-16', 'Hi-19', 'Hi-25' and 'CENTIFLEX' are associated solely
with the plaintiff and no one else by the members of the trade and public in
general.
66. The plaintiff's witness has stated that the label mark / trade dress
of the defendant No. 4's product bearing the mark 'Mi-19' exhibited as
Exh.P2 which he stated is deceptively similar to the plaintiff's 'Hi-WIDE',
'Hi-16', 'Hi-19', and 'Hi-25' label mark/trade dress when the plaintiff
learned of the label mark/ trade dress of the defendant. Thereafter the
plaintiff came across the advertisement of defendant No. 4 published in the
Yellow Pages which has been exhibited as Exh.P4 wherein the said
product 'Mi-19' had been advertised, which according to the plaintiff is
deceptively similar to the marks 'Hi-WIDE', 'Hi-16', 'Hi-19', and 'Hi-25'.
67. As per the plaintiff's witness the registered design of the
plaintiff under no 189251 dated June 19, 2002 (Exh.PW1/14) was for the
product 'FIBER PLASTIKA' was also infringed by the defendants' product
under the mark 'FIBERTEX' as exhibited as Exh.PW1/15.
68. As per the affidavit filed by the plaintiff's witness the
defendant's 'Mi-19' was deceptively similar to the plaintiff's 'Hi-WIDE',
'Hi-16', 'Hi-19', and 'Hi-25' label marks/ trade dress, to which the
defendants had made minor changes/insignificant changes in the impugned
label that it infringes the plaintiff's series of 'Hi' marks and labels/trade
dress such as 'Hi-WIDE', 'Hi-16', 'Hi-19', and 'Hi-25' the defendants
have admitted the label mark/trade dress of their product as exhibited as
Exh.P2 and the advertisement as published by them Exh.P4.
69. With regard to the label mark / trade dress of the defendants'
product under the mark 'CONFLEX' is also infringing the plaintiff's label
mark / trade dress of its measuring tapes bearing the mark 'CENTIFLEX'
he has exhibited the defendants' impugned product as Exh.P3
70. Having noted the statements and documents relied upon by the
plaintiff it is also necessary to take into account the stand of the defendants
in their written statement wherein they have in paragraph 8 stated as under:
"It is submitted that the Defendants have never used and do not intend to use the marks 'Mi-19' and 'CONFLEX'. Hence the allegations of infringement of trademark, design and copyright made by the Plaintiff against the Defendants are absolutely baseless. It is further submitted that the Defendants are using the series of marks namely A-13, A-16, A- 19 where 'A' stands for 'Ambika' and denominations 13/16/19 stand for width of the Steel Tape."
So, it follows that the defendants have categorically stated they shall
not use the marks 'Mi-19' and 'CONFLEX'. The said statement is taken on
record. These issues have been decided accordingly.
Issue No. XIV
71. Accordingly, the suit is decreed in terms of prayers (a) and (b).
Prayers (c) and (d) are granted in favour of the plaintiff with respect to the
products sold under the marks 'Hi-WIDE', 'Hi-16', 'Hi-19' and 'Hi-25';
however, in terms of the findings hereinabove the plaintiff has not been
able to prove its case with respect to infringement of its mark
'CENTIFLEX' by the defendants use of the mark 'CONFLEX', it may be
stated here however that the statement of the defendants in terms of the
averments made in the written statement in paragraph 8 are taken on
record. The suit is also decreed whereby the defendants are injuncted from
using the marks 'Mi-19' and 'CONFLEX'. As it is a conceded case of the
parties that the defendants have not brought the products in the market and
the suit is quia timet in nature and in the facts of this case the plaintiff is not
entitled to damages. Prayer (e) has become infructuous in terms of the
undertaking given by the defendants as recorded above. Prayers (f), (g) and
(h) are not granted. Decree sheet be drawn up. No costs.
I.A.16792/2013
72. This is an application filed by the defendants under Order XI
Rule 1 of the Code of Civil Procedure, 1908. In light of the above
conclusion in paragraph 71 along with the fact that the defendants are ex
parte, the same has become infructuous and is dismissed.
V. KAMESWAR RAO, J
DECEMBER 22, 2020/jg
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