Sunday 28 April 2013

Intellectual Property Laws I - Semester IV


LL.B. IV Term
Paper : Intellectual Property Law-I

(General Principles, Enforcement, Abuse of Intellectual Property Rights(IPR’s) and International Conventions, Law of Trade Marks, Domain Names, Geographical Indications and Designs)

1. Introduction to Intellectual Property and its Abuse

1. General Principles of Intellectual Property Rights
Nature and Concept of IPR , WTO/TRIPs
Brief evolution of IPR and its importance in present context
Types of Intellectual Property
Enforcement of Intellectual Property Rights (Art. 9-39 TRIPs), by various national laws


2. Abuse of Intellectual Property—Concept, Redress under Art.40 TRIPs and Competition Law
Refusal to license
Conditions of Exclusive Grantback
Coercive Package Licensing or tieing in
Market Power and Dominance
Horizontal and Vertical Restraints on licencee Abuse of Dominant Positionby right holder
3. International legal instruments relating to IPR
Paris Convention, 1883 and TRIPs
Reciprocity and Priority
Concept of Minimum Standards
Concept of National Treatment
Concept of Most Favoured Nation (MFN)
Madrid Agreement, Madrid Protocol, 1989 amended on Oct 3, 2006 and Nov 12, 2007, The Trade Marks (Amendment) Bill, 2009

2. Trade Marks Law
[Legislation :Trade Marks Act, 1999, in force from 15th Sep., 2003]
Note: Students should note that some cases are decided under the previous Act of 1958 (the meanings assigned to words and expressions under the old Act are to be understood and may be applied to the provisions of new Act of 1999 also)

1. Introduction
1.1 Definitions/Meaning of:

‘Mark’ S.2(1)(m); - “mark” includes a device, brand, heading, lable, ticket, name, signature, word, letter, numeral, shape of goods, packaging or combination of colours or any combination thereof.

‘Trade mark’ S.2(1)(zb); -  “trade mark” means a mark capable of being represented graphically and which is capable of distinguishing the goods or services of one person from choose of others and may include shape of goods, their packaging and combination of colours , and

in relation to Chapter XII (other than section 107), a registered trade mark or mark used in relation to goods or services for the purpose of indicating or so as to indicate a connection in the course of trade between the goods or services, as the case may be, and some person having the right as proprietor to use the mark, and

in relation to other provisions of this Act, a mark used or proposed to be used in relation to goods or services for the purpose of indicating or so to indicate to a connection in the course of trade between the goods or services, as the case may be, and some person having the right, either as proprietor or by way of permitted user, to use the mark whether with or without any indication of the identity of that person, and includes a certification trade mark or collective mark.

‘Service’ S.2(1)(z); “service” means service of any description which is made available to potential users and includes the provisions of services in connection with business of any industrial or commercial matters such as banking, communication, education, financing, insurance, chit funds, real estate, transport, storage, material treatment, processing, supply of electrical or other energy, boarding, lodging, entertainment, amusement, construction, repair, conveying of news or information and advertising.

‘Goods’ S.2(1)(j); “goods” means anything which is the subject of trade or manufacture.

‘Package’ S.2(1)(q); “package” includes any case, box, container, covering, folder, recetacle, vessel, casket, bottle, wrapper, labler, band, ticket, reel, frame, capsule, cap, lid, stopper and cork.

‘Well known trade mark’ S.2(1)(zg) “well-known trade mark” in relation to any goods or service, means a mark which has becomes so to the substantial segment of the public which uses such goods or receives such services that the use of such mark in relation to other goods or services would be likely to be taken as indicating a connection in the course of trade or rendering of services between those goods or services and a person using the mark in relation to the first mentioned goods or services.

Functions, General Principles, Need for Protection of Trademarks, Registered and Unregistered Trade Marks

1.2 Use of trade mark on goods/services– S.2(2)(b) & (c), 29(6),

Section (2) In this Act, unless the context otherwise requires, any reference- (a) to "trade mark" shall include reference to "collective mark" or "certification trade mark"; (b) to the use of a mark shall be construed as a reference to the use of printed or other visual representation of the mark; (c) to the use of a mark,- (i) in relation to goods, shall be construed as a reference to the use of the mark upon, or in any physical or in any other relation whatsoever, to such goods; (ii) in relation to services, shall be construed as a reference to the use of the mark as or as part of any statement about the availability, provision or performance of such services;

 Section 29(6) For the purposes of this section, a person uses a registered mark, if, in particular, he- (a) affixes it to goods or the packaging thereof; (b) offers or exposes goods for sale, puts them on the market, or stocks them for those purposes under the registered trade mark, or offers or supplies services under the registered trade mark; (c) imports or exports goods under the mark; or (d) uses the registered trade mark on business papers or in advertising.


1.2.1 Use in Advertisements –declared as use and ground for protection even without goods/services

N. R. Dongre v. Whirlpool Corporation, (1996) 5 SCC 714
Facts: The plaintiff was the first to use the WHIRLPOOL trademark in the global market, and it advertised the mark in international magazines having circulation in India. Whirlpool was selling its goods in several countries but not in India, except to the U.S. Embassy and US AID in India

Held:
- passing-off action was maintainable in law even against the registered owner of the trade mark
- trans border reputation extended to India
- that the mark “Whirlpool” gave an indication of the origin of the goods as emanating from or relating to Whirlpool Corporation
-  refusal of an injunction could cause irreparable injury to the reputation of Whirlpool Corporation in comparison small injury to appellants as they simply have to remove a label and they can still sell their goods.

Opinion of HC in this case
“In today’s world, it cannot be said that a product, and the trademark under which it is sold abroad, does not have a reputation or goodwill in countries where it is not available.”

Plausible Explanation of Adoption / Honest Adoption
In the Whirlpool case, the High Court considered “lack of plausible explanation of adoption” to be an important factor in deciding the matter: “In the absence of any satisfactory explanation by the appellants, the adoption of the mark by them cannot prima facie be regarded as honest….” It is noteworthy that, despite the fact that whirlpool” is a dictionary word, the court held the lack of plausible explanation against the defendant when granting the injunction.

1.2.2 Protecting Domain Names as Trade Marks

Satyam Infoway Ltd v. Sifynet Solutions Pvt. Ltd, AIR 2004 SC 3540

The appellant in the Supreme Court action, Satyam Infoway Ltd., alleged that the respondent, Sifynet Solutions Pvt. Ltd., had intentionally registered and operated a domain name that was confusingly similar to one owned by Satyam Infoway. Satyam Infoway claimed that it had in 1999, registered several domain names pertaining to its business: sifynet.com, sifymall.com, sifyrealestate.com, with the Internet Corporation for Assigned Names and Numbers (ICANN) and the World Intellectual Property Organization (WIPO). It submitted that the word "Sify" – which was an amalgam of elements of its corporate name "Satyam Infoway" – was a "fanciful" term, and that it had further garnered substantial goodwill in the market. Meanwhile, Sifynet Solutions had started using the word "Siffy" as part of the domain names under which it carried on internet marketing (namely siffynet.com and siffynet.net), claiming to have registered them with ICANN in 2001.

Satyam Infoway alleged that Sifynet Solutions was attempting to pass off its services as those belonging to Satyam Infoway by using a deceptively similar word as part of its domain name. Satyam Infoway claimed that this would cause confusion in the minds of the relevant consumers, who would mistake the services of Sifynet Solutions as belonging to Satyam Infoway.

Sifynet Solutions contended that unlike a trade mark, the registration of a domain name did not confer an intellectual property right in the name. It averred that a domain name is merely an address on the computer, which allows communications from the consumers to reach the owner of the business, and confers no comparable property rights in the same.

Because of a lacuna in the intellectual property laws of India, there was no law which specifically addressed disputes relating to domain names. Therefore, members of the Internet community asked the courts to apply trade mark law as an effective avenue of redress for their disputes. The High Court responded and held that domain names could be adequately protected under the doctrine of passing off referred to in the Indian law of trade marks. This doctrine was applied to resolve domain name disputes in Rediff Communication Ltd. v. Cyberbooth & Anr. (AIR 2000 Bombay 27), Yahoo Inc. v. Akash Arora [1999 PTC (19) 201], Acqua Minerals Ltd. v. Pramod Borse & Anr. [2001 PTC 619 (Del)], Dr. Reddy's Laboratories Ltd. v. Manu Kosuri [2001 PTC 859 (Del)]. The Supreme Court in Satyam Infoway Ltd. v. Sifynet Solutions Pvt. Ltd., affirmed the law laid down by these various High Courts, and established a modicum of certainty with regard to the law in this contentious sphere.[3]

City Civil Court
Satyam Infoway filed suit in the City Civil Court, Bangalore, and requested a temporary injunction against Sifynet Solutions. The court ruled in favour of Satyam Infoway and granted the temporary injunction. It stated that Satyam Infoway was the prior user of the word "Sify", and that it had garnered immense popularity in respect of the sale of internet and computer services sold under the same. It further found that Sifynet Solutions' domain name was confusingly similar to that of Satyam Infoway, and would consequently create confusion in the minds of the public with respect to the source of the services.[2]

High Court
Sifynet Solutions appealed to the Karnataka High Court, which heard the case. The High Court based its decision on a consideration of where the balance of convenience lay. The High Court stated that Sifynet Solutions had already invested heavily in securing a customer base for the business (about 50,000 members), and would consequently suffer immense hardship and irreparable injury if the court found in Satyam Infoway's favour. It noted that the business that the two parties were involved in were disparate, and therefore there was no possibility of the customers being misled by similar domain names.[1] Further, since Satyam Infoway also had that name to use in trade, the High Court believed that it would not cause them considerable hardship to deny the temporary injunction.[2]
Supreme Court

The Supreme Court, through a bench comprising Justices Ruma Pal and P. Venkatarama Reddi, set aside the decision of the High Court, and ruled in favour of Satyam Infoway. It declared that domain names are subject to the regulatory framework that is applied to trade marks (i.e. the Trade Marks Act, 1999). The court stated that though there is no law in India which explicitly governs the regime of domain names, this state of affairs does not foreclose protection for domain names under the aegis of the Trade Marks Act. Thus, the court determined that domain names are protected under the law relating to passing off as delineated in the Trade Marks Act.[4]
In order to arrive at the Holding, the Supreme Court analogized domain names to trade marks. After an elaboration of sections 2(zb), 2(m), and 2(z), the court stated that a domain name in the contemporary era has evolved from a mere business address to a business identifier. Therefore, a domain name is not merely a portal for internet navigation, but also an instrument which distinguishes and identifies the goods or services of the business, while simultaneously providing the specific internet location. This feature of domain names in the modern era allows them to be likened to trade marks, and concomitantly to be included within the purview of the Trade Marks Act.

Passing off
The court delineated the elements of an action for passing off that Satyam Infoway would have to prove in order to succeed. Firstly, Satyam Infoway had to prove accumulated goodwill in the name "Sify", such that it would be apparent that the consumers associated the name "Sify" with the services offered by Satyam Infoway.[5] Satyam Infoway discharged this burden by demonstrating that the name "Sify" had acquired immense repute in the market in association with their services. Satyam Infoway argued that it had 840 cyber cafés, five lakh (five hundred thousand) subscribers, and 54 units of presence all over India. Moreover, it adduced evidence to indicate that it was the first Indian internet company to be listed on the NASDAQ stock exchange in 1999, and that it had expended an enormous amount of money towards the same. It further presented several newspaper articles which had specifically referred to Satyam Infoway company as "Sify", and further various advertisements developed to promote their services which had also prominently referred to Satyam Infoway as "Sify".

Secondly, Satyam Infoway had to establish that Sifynet Solutions had misrepresented its services to the consumers, such that a likelihood of confusion was created in the minds of the consuming public that the services offered by Sifynet Solutions belonged to Satyam Infoway.

Thirdly, Satyam Infoway was required to prove that a likelihood of confusion in the minds of consumers would inevitably be a result due to the use of a similar domain name by Sifynet Solutions, and further, that such confusion would cause injury to the public and definite loss to Satyam Infoway. The standard applied by the court to assess likelihood of confusion was that of an unwary consumer of "average intelligence and imperfect recollection".The court expressed the opinion that in the field of internet services, the difference in the nature of services offered by businesses may not be of much consequence due to the method of operation on the internet. The court discussed this facet at length and explained that the accessibility of domain names to a wide spectrum of users underscores the point that similarity in domain names would lead to confusion and also receipt of unsought for services.

Distinction between trade mark and domain name
The court proceeded to distinguish between the nature of a trade mark and a domain name. It stated that the distinction is important to determine the scope of protection available to the rights of an owner of either of the two. The court indicated that they can be distinguished primarily on the basis of the method of operation. While, a trade mark upon registration in a particular country acquires rights which are purely national in character, the operation of a domain name cannot be contained within a specific country. Thus, due to this facet of domain names, the court expressed the opinion that it would be difficult to protect them effectively under national laws. In this regard, the court expressed that the International Registrars, i.e., WIPO, and ICANN, had provided a modicum of effective protection to domain names.[1]

Balance of convenience
The Supreme Court disagreed with the High Court on the issue of where the balance of convenience lay. The court stated that no irreparable injury would be caused to Sifynet Solutions by proscribing him from using the domain name. It instead believed that Satyam Infoway had garnered immense goodwill associated with its business, and therefore denying it the use of its domain name would render injustice to it.

The court also ruled that the right to use similar domain names could not be conferred upon both the parties in equal measure, since upon evidence adduced during the proceedings it was reasonable to conclude that Sifynet Solutions had adopted Satyam Infoway's mark with a dishonest intention to pass off its services as those of Satyam Infoway's.

Subsequent developments

While the decision was appreciated for the finality it introduced in respect of the law regulating domain name disputes, it was also criticized by some in the legal circles for failing to notice the significant distinctions between trade marks and domain names. The decision has also been criticized because it is believed that the Trade Marks legislation is not equipped to deal with the myriad disputes that arise in the domain name realm. Further, it is also believed that even the Information Technology Act, 2000, has failed to fill in the lacunae in the Trade Marks Act with respect to domain names.[7]
In late 2004, the Indian legislature introduced a significant change in the administration of the .INRegistry. The INRegistry is now the official .IN domain name Registry.'.in' is India's top-level domain on the internet. The INRegistry is operated under the aegis of the National Internet Exchange of India (NIXI). The Registry has issued the .IN Dispute Resolution Policy (INDRP),[7] pertaining to resolution of domain name disputes between the registrants of NIXI


1.2.3 Trade Mark for Services
Balakrishna Hatcheries v. Nandos International Ltd, 2007(35) PTC 295(Bom)

Health and Glow Retailing Pvt. Ltd v. Dhiren Krishna Paul, Trading as Health and Glow Clinic,2007(35) PTC 471(Mad)

2. Registration of trade mark for goods/services -
Application for registration.
18. Application for registration.-(1) Any person claiming to be the proprietor of a trade mark used or proposed to be used by him, who is desirous of registering it, shall apply in writing to the Registrar in the prescribed manner for the registration o his trade mark.
(2) A single application may be made for registration of a trade mark for different classes of goods and services and fee payable therefore shall be in respect of each such class of goods or services.
(3) Every application under sub-section (1) shall be filed in the office of the Trade Marks Registry within whose territorial limits the principal place of business in India of the applicant or in the case of joint applicants the principal place of business in India of the applicant whose name is first mentioned in the application as having a place of business in India, is situated: Provided that where the applicant or any of the joint applicants does not carry on business in India, the application shall be filed in the office of the Trade Marks Registry within whose territorial limits the place mentioned in the address for service in India as disclosed in the application, is situate.
(4) Subject to the provisions of this Act, the Registrar may refuse the application or may accept it absolutely or subject to such amendments, modifications, conditions or limitations, if any, as he may think fit.
(5) In the case of a refusal or conditional acceptance of an application, the Registrar shall record in writing the grounds for such refusal or conditional acceptance and the materials used by him in arriving at his decision.

Withdrawal of acceptance.
19. Withdrawal of acceptance.-Where, after the acceptance of an application for registration of a trade mark but before its registration, the Registrar is satisfied-
(a) that the application has been accepted in error; or
(b) that in the circumstances of the case the trade mark should not be registered or should be registered subject to conditions or limitations or to conditions additional to or different from the conditions or limitations subject to which the application has been accepted, the Registrar may, after hearing the applicant if he so desires, withdraw the acceptance and proceed as if the application had not been accepted.

Advertisement of application.
20. Advertisement of application.-(1) When an application for registration of a trade mark has been accepted, whether absolutely or subject to conditions or limitations, the Registrar shall, as soon as may be after acceptance, cause the application as accepted together with the conditions or limitations, if any, subject to which it has been accepted, to be advertised in the prescribed manner: Provided that the Registrar may cause the application to be advertised before acceptance if it relates to a trade mark to which sub-section (1) of section 9 and sub-sections (1) and (2) of section 11 apply, or in any other case where it appears to him that it is expedient by reason of any exceptional circumstances so to do.
(2) Where- (a) an application has been advertised before acceptance under sub-section (1); or (b) after advertisement of an application,- (i) an error in the application has been corrected; or (ii) the application has been permitted to be amended under section 22, the Registrar may in his discretion cause the application to be advertised again or in any case falling under clause (b) may, instead of causing the application to be advertised again, notify in the prescribed manner the correction or amendment made in the application.

Opposition to registration.
21. Opposition to registration.-(1) Any person may, within three months from the date of the advertisement or re-advertisement of an application for registration or within such further period, not exceeding one month in the aggregate, as the Registrar, on application made to him in the prescribed manner and on payment of the prescribed fee, allows, give notice in writing in the prescribed manner to the Registrar, of opposition to the registration.
(2) The Registrar shall serve a copy of the notice on the applicant for registration and, within two months from the receipt by the applicant of such copy of the notice of opposition, the applicant shall send to the Registrar in the prescribed manner a counter-statement of the grounds on which he relies for his application, and if he does not do so he shall be deemed to have abandoned his application.
(3) If the applicant sends such counter-statement, the Registrar shall serve a copy thereof on the person giving notice of opposition.
(4) Any evidence upon which the opponent and the applicant may rely shall be submitted in the prescribed manner and within the prescribed time to the Registrar, and the Registrar shall give an opportunity to them to be heard, if they so desire.
(5) The Registrar shall, after hearing the parties, if so required, and considering the evidence, decide whether and subject to what conditions or limitations, if any, the registration is to be permitted, and may take into account a ground of objection whether relied upon by the opponent or not.
(6) Where a person giving notice of opposition or an applicant sending a counter-statement after receipt of a copy of such notice neither resides nor carries on business in India, the Registrar may require him to give security for the costs of proceeding before him, and in default of such security being duly given, may treat the opposition or application, as the case may be, as abandoned.
(7) The Registrar may, on request, permit correction of any error in, or any amendment of, a notice of opposition or a counter-statement on such terms as he thinks just.

Correction and amendment.
22. Correction and amendment.-The Registrar may, on such terms as he thinks just, at any time, whether before or after acceptance of an application for registration under section 18, permit the correction of any error in or in connection with the application or permit an amendment of the application: Provided that if an amendment is made to a single application referred to in sub-section (2) of section 18 involving division of such application into two or more applications, the date of making of the divided applications so divided initial application shall be deemed to be the date of making of the Registration.
23. Registration.-(1) Subject to the provisions of section 19, when an application for registration of a trade mark has been accepted and either- (a) the application has not been opposed and the time for notice of opposition has expired; or (b) the application has been opposed and the opposition has been decided in favour of the applicant, the Registrar shall, unless the Central Government otherwise directs, register the said trade mark and the trade mark when registered shall be registered as of the date of the making of the said application and that date shall, subject to the provisions of section 154, be deemed to be the date of registration.
(2) On the registration of a trade mark, the Registrar shall issue to the applicant a certificate in the prescribed form of the registration thereof, sealed with the seal of the Trade Marks Registry.
(3) Where registration of a trade mark is not completed within twelve months from the date of the application by reason of default on the part of the applicant, the Registrar may, after giving notice to the applicant in the prescribed manner, treat the application as abandoned unless it is completed within the time specified in that behalf in the notice.
(4) The Registrar may amend the register or a certificate of registration for the purpose of correcting a clerical error or an obvious mistake.

Absolute grounds for refusal of registration.
9. Absolute grounds for refusal of registration.-(1) The trade marks- (a) which are devoid of any distinctive character, that is to say, not capable of distinguishing the goods or services of one person from those of another person; (b) which consist exclusively of marks or indications which may serve in trade to designate the kind, quality, quantity, intended purpose, values, geographical origin or the time of production of the goods or rendering of the service or other characteristics of the goods or service; (KQ QIV GTO)  (c) which consist exclusively of marks or indications which have become customary in the current language or in the bona fide and established practices of the trade, shall not be registered:
Provided that a trade mark shall not be refused registration if before the date of application for registration it has acquired a distinctive character as a result of the use made of it or is a well-known trade mark.
(2) A mark shall not be registered as a trade mark if- (a) it is of such nature as to deceive the public or cause confusion; (b) it contains or comprises of any matter likely to hurt the religious susceptibilities of any class or section of the citizens of India; (c) it comprises or contains scandalous or obscene matter; (d) its use is prohibited under the Emblems and Names (Prevention of Improper Use) Act, 1950 (12 of 1950).
(3) A mark shall not be registered as a trade mark if it consists exclusively of- (a) the shape of goods which results from the nature of the goods themselves; or (b) the shape of goods which is necessary to obtain a technical result; or (c) the shape which gives substantial value to the goods.
Explanation.-For the purposes of this section, the nature of goods or services in relation to which the trade marks is used or proposed to be used shall not be a ground for refusal of registration.

Prior/Vested Rights,

Rectification of register (S.57 )
Section 57. Power to cancel or vary registration and to rectify the register.—

(1) On application made in the prescribed manner to the Appellate Board or to the Registrar by any person aggrieved, the tribunal may make such order as it may think fit for cancelling or varying the registration of a trade mark on the ground of any contravention, or failure to observe a condition entered on the register in relation thereto.

(2) Any person aggrieved by the absence or omission from the register of any entry, or by any entry made in the register without sufficient cause, or by any entry wrongly remaining on the register, or by any error or defect in any entry in the register, may apply in the prescribed manner to the Appellate Board or to the Registrar, and the tribunal may make such order for making, expunging or varying the entry as it may think fit.

(3) The tribunal may in any proceeding under this section decide any question that may be necessary or expedient to decide in connection with the rectification of the register.

(4) The tribunal, of its own motion, may, after giving notice in the prescribed manner to the parties concerned and after giving them an opportunity of being heard, make any order referred to in sub-section (1) or sub-section (2).

(5) Any order of the Appellate Board rectifying the register shall direct that notice of the rectification shall be served upon the Registrar in the prescribed manner who shall upon receipt of such notice rectify the register accordingly.


2.1 Absolute Grounds for Refusal of Registration - S.9(1) Distinctive character in 9(1)(a) , 8 types of Descriptive, laudatory marks or indications or words in S.9(1)(b), customary or bonafide practices of trade- – clause 9(1)(c), Proviso to S.9(1) - Acquired Distinctive character and well known marks

Section 9 (1) The trade marks—

(a) which are devoid of any distinctive character, that is to say, not capable of distinguishing the goods or services of one person from those of another person;

(b) which consist exclusively of marks or indications which may serve in trade to designate the kind, quality, quantity, intended purpose, values, geographical origin or the time of production of the goods or rendering of the service or other characteristics of the goods or service;

(c) which consist exclusively of marks or indications which have become customary in the current language or in the bona fide and established practices of the trade,

shall not be registered :

Provided that a trade mark shall not be refused registration if before the date of application for registration it has acquired a distinctive character as a result of the use made of it or is a well-known trade mark.


1. M/s Hindustan Development Corporation Ltd v. The Deputy Registrar of Trade Marks, AIR 1955 Cal 319

Held: The word "Rasoi" has not become distinctive of the applicant's goods and as such it is also ineligible for registration on the ground that no trader can have ordinarily a monopoly of an ordinary word of the language.

2. The Imperial Tobacco Co. of India v. The Registrar of Trade Marks, AIR 1977 Cal 413

The Calcutta High Court held that the trade mark “Simla” with the label is composite in character. It is a well known hill– station of India. Its geographical signification is, therefore, plain and unequivocal. Upheld registrar’s decision of refusing registration.

3. Geep FlashLight Industries v. Registrar of Trade Marks, AIR 1972 Del 179

Held that although the appellant had led evidence to prove that its torches bearing the name 'Janta' have acquired considerable reputation in the market, still the word 'Janta' is in fact not adapted to distinguish or is in fact not capable of distinguishing the appellant's goods.
Held that it is open to the Registrar to decline to register the appellant's trade mark in the exercise of his discretion under Section 18(4) of the Act.


2.2. S.9(2) -- Nature of mark as to deceive the public or cause confusion’
Wide power – no mention of marks or goods
Note, that under 1958 Act it was covered under the expression Deceptive Similarity

Section 9 (2) A mark shall not be registered as a trade mark if—
(a) it is of such nature as to deceive the public or cause confusion;
(b) it contains or comprises of any matter likely to hurt the religious susceptibilities of any class or section of the citizens of India;
(c) it comprises or contains scandalous or obscene matter;
(d) its use is prohibited under the Emblems and Names (Prevention of Improper Use) Act, 1950 (12 of 1950).

4. Sunder Parmanand Lalwani v. Caltex (India) Ltd, AIR 1969 Bom 24
An application for registration of trademark Caltex in respect of clocks and watches was refused registration, allowing an appeal against the decision of the Registrar, even though the opponents mark ‘caltex’ was well-known only in respect of petroleum products.

5. Sony Kabushuki Kaisha v. Samrao Masker, AIR 1985 Bom 327

The Bombay High Court refused to interfere with an order of the registrar which allowed registration of the mark SONI for nail polish. The court observed that: "where the trade channels for sale of the two items are entirely different and there is no common field of activity in the course of trade of the two items and also classes of customers who purchase the two items are entirely distinct and different, objection to registration of the impugned trademark cannot be sustained, as there would be no likelihood of confusion or deception."


3. Relative Grounds for Refusal – S. 11

Relative grounds for refusal of registration.
11. Relative grounds for refusal of registration.-(1) Save as provided in section 12, a trade mark shall not be registered if, because of- (a) its identity with an earlier trade mark and similarity of goods or services covered by the trade mark; or (b) its similarity to an earlier trade mark and the identity or similarity of the goods or services covered by the trade mark, there exists a likelihood of confusion on the part of the public, which includes the likelihood of association with the earlier trade mark.
(2) A trade mark which- (a) is identical with or similar to an earlier trade mark; and (b) is to be registered for goods or services which are not similar to those for which the earlier trade mark is registered in the name of a different proprietor, shall not be registered if or to the extent the earlier trade mark is a well-known trade mark in India and the use of the later mark without due cause would take unfair advantage of or be detrimental to the distinctive character or repute of the earlier trade mark.
(3) A trade mark shall not be registered if, or to the extent that, its use in India is liable to be prevented- (a) by virtue of any law in particular the law of passing off protecting an unregistered trade mark used in the course of trade; or (b) by virtue of law of copyright.
(4) Nothing in this section shall prevent the registration of a trade mark where the proprietor of the earlier trade mark or other earlier right consents to the registration, and in such case the Registrar may register the mark under special circumstance under section 12. Explanation.-For the purposes of this section, earlier trade mark means- (a) a registered trade mark or convention application referred to in section 154 which has a date of application earlier than that of the trade mark in question, taking account, where appropriate, of the priorities claimed in respect of the trade marks; (b) a trade mark which, on the date of the application for registration of the trade mark in question, or where appropriate, of the priority claimed in respect of the application, was entitled to protection as a well-known trade mark.
(5) A trade mark shall not be refused registration on the grounds specified in sub-sections (2) and (3), unless objection on any one or more of those grounds is raised in opposition proceedings by the proprietor of the earlier trade mark.
(6) The Registrar shall, while determining whether a trade mark is a well-known trade mark, take into account any fact which he considers relevant for determining a trade mark as a well-known trade mark including- (i) the knowledge or recognition of that trade mark in the relevant section of the public including knowledge in India obtained as a result of promotion of the trade mark; (ii) the duration, extent and geographical area of any use of that trade mark; (iii) the duration, extent and geographical area of any promotion of the trade mark, including advertising or publicity and presentation, at fairs or exhibition of the goods or services to which the trade mark applies; (iv) the duration and geographical area of any registration of or any application for registration of that trade mark under this Act to the extent they reflect the use or recognition of the trade mark; (v) the record of successful enforcement of the rights in that trade mark, in particular, the extent to which the trade mark has been recognised as a well-known trade mark by any court or Registrar under that record.
(7) The Registrar shall, while determining as to whether a trade mark is known or recognised in a relevant section of the public for the purposes of sub-section (6), take into account- (i) the number of actual or potential consumers of the goods or services; (ii) the number of persons involved in the channels of distribution of the goods or services; (iii) the business circles dealing with the goods or services, to which that trade mark applies.
(8) Where a trade mark has been determined to be well-known in at least one relevant section of the public in India by any court or Registrar, the Registrar shall consider that trade mark as a well-known trade mark for registration under this Act.
(9) The Registrar shall not require as a condition, for determining whether a trade mark is a well-known trade mark, any of the following, namely:- (i) that the trade mark has been used in India; (ii) that the trade mark has been registered; (iii) that the application for registration of the trade mark has been filed in India; (iv) that the trade mark- (a) is well-known in; or (b) has been registered in; or (c) in respect of which an application for registration has been filed in, any jurisdiction other than India; or (v) that the trade mark is well-known to the public at large in India.
(10) While considering an application for registration of a trade mark and opposition filed in respect thereof, the Registrar shall- (i) protect a well-known trade mark against the identical or similar trade marks; (ii) take into consideration the bad faith involved either of the applicant or the opponent affecting the right relating to the trade mark.
(11) Where a trade mark has been registered in good faith disclosing the material information to the Registrar or where right to a trade mark has been acquired through use in good faith before the commencement of this Act, then, nothing in this Act shall prejudice the validity of the registration of that trade mark or right to use that trade mark on the ground that such trade mark is identical with or similar to a well-known trade mark.


3.1 Later trade mark similar with Earlier Trade Marks –S.11(1)
Identity or similarity of Marks resulting -- in likelihood of confusion or – Association with earlier Mark ( Dilution ) and Identitiy or similarity of goods/services- Overlap with s 9(2)
Determination of Similarity of goods/services (See Jelineks Appln, (1946) 63 RPC and Panda Case)



6. K. R. Krishna Chettiar v. Sri Ambal & Co, AIR 1970 SC 146
(Source: IndianKanoon.Org)
Facts: The appellant was the sole proprietor of a concern known as Radha & Co. The respondents Ambal & Co. were a partnership concern. The respondents as also the appellant were manufacturers and dealers in snuff, carrying on business at Madras and having business activities inside and outside the State of Madras. In 1958 the appellant sought registration of a trade mark consisting of a label with a picture of the goddess Sri Andal and the legand 'Sri Andal' in the central panel, and the words 'Sri Andal Madras Snuff' in various languages in the upper and lower panels. The appellant's application was objected to by the respondents on the ground that it was deceptively similar to their registered trade marks. One of these consisted of a label containing a device of goddess Sri Ambal in the centre with the legand 'Sri Ambal parimala snuff' at the top of the label and the name 'Sri Ambal & Co. Madras' at the bottom. The other trade mark consisted of the expression 'Sri Ambal'. The Registrar of Trade Marks held that the sound of 'Ambal' did not so nearly resemble the sound of 'Andal' in spite of certain letters being common to both the marks as to be likely to cause confusion or deception among a substantial number of persons. A Single Judge of the High Court and the Divisional Bench however took the opposite view whereupon the appellant came to this Court. No plea of honest concurrent use -within the meaning of s. 12(2) of the Act could be raised in view of the concurrent finding in this respect by the Registrar as well as the two courts below.

Held that:
(i) The Registrar had expert knowledge and his decision should not be lightly disturbed. But both the courts had found that he was clearly wrong and that there was deceptive similarity between the two marks. In an appeal under Art. 136 of the Constitution the onus was upon the appellant to show that the concurrent finding of the courts below was erroneous and that the conditions of s. 12(1) had been satisfied.

(ii) The question in issue was whether if the appellant's mark was used in a normal and fair manner in connection with the snuff and if similarly fair and normal user was assumed of the existing registered marks, will there be such a likelihood of deception that the mark ought not to be allowed to be registered ? The court had to decide the question on a comparison of the competing marks as a whole and their distinctive and essential features. So considered there could be no doubt that the word 'Ambal' was the distinguishing feature of the trade mark of the respondent and the word 'Andal' was the distinguishing feature of the appellant's trade mark. There is a striking similarity and affinity of sound between the words 'Andal' 291 and 'Ambal' Giving due weight to the judgment of the Registrar and bearing in mind the conclusions of the Single Judge and the Divisional Bench it must be held that there was real danger of confusion between the two marks,
(iii) There was no visual resemblance between the two marks but ocular comparison is not always the decisive test. The resemblance between the two marks must be considered with reference to the ear as well as the eye.

(iv) The argument that on account of the different ideas 'conveyed by the words 'Ambal' and 'Andal' the accidental phonetic resemblance' could not lead to confusion was not acceptable because it lost sight of the realities of the case. The Hindus in the South of India may be well aware that the words Ambal and Andal represent the names of two distinct goddesses. But the respondent's customers were not confined to the Hindus of the South of India alone and they were not likely to remember the fine distinctions between a Vaishnavite goddess and a Shivaite deity. The appeal, accordingly, must be disallowed.

3.2 Earlier Trade mark – if a Well Known Trade Marks - S.11(2)
Prohibition of registration even for different goods/ services
Factors for determination - 11(6) to 11(9)
Effect of Trade marks registered or used in good faith – S.11(11), effect of Acquiescence

7. Carrefour v. V. Subburaman, 2007(35) PTC 225
 Facts

Carrefour, a company incorporated in France and one of the country's largest retailers, applied for an injunction to restrain the defendant from infringing the trade name and mark CARREFOUR by using it for its products.

One of the defendant's key arguments was that (i) the mark CARREFOUR was not well known in India because:  the plaintiff owned hypermarkets in other countries, and the reputation of the mark was not based on the actual products sold by those hypermarkets, which might have been familiar to Indian consumers;
(ii) the trade name and mark CARREFOUR did not have the status of a well-known mark under Section 11 of the Trademark Act 1999; and

(iii) the plaintiff was not involved in the manufacture and marketing of furniture in India, as proven by the fact that the trademark had not been registered in that particular class.

Decision
The court, holding that the acquisition of a transborder reputation is a question of fact, stated that the plaintiff had established a prima facie case. It adopted the trade name and mark in 1960 and owned a total of 2,500 registrations worldwide for a variety of products, including furniture. In India, the trade name and mark was registered in respect of several products (excluding furniture) in 1995, and the plaintiff had a presence in India through a liaison office and global sourcing agreements with manufacturers.

On the issue of the status of the trade name and mark under the act, the court stated that as Section 11 deals with the grounds for refusal to register a trademark, and the sole consideration in this case was the alleged passing off of goods, Section 11 could not be invoked. However, the court stated that the concept of a well-known trademark, as distinguished from a normal trademark, aims not only to protect a mark that is identified with a particular type of goods or services, but also to protect that mark from being used in relation to other goods and services if a substantial sector of the public would be led to believe that there is a connection between the two sets of goods and services. Thus, a well-known mark should be protected to safeguard consumer interests, even if the unauthorized use of that trademark relates to products that are dissimilar to the products bearing the well-known mark.

The court relied on the ruling in Rob Mathys India Pvt Ltd v Synthes Ag Chur (1977 (17) PTC 669 (DB)). It held that in such cases, the Indian courts would do well to follow the middle path rather than the hardline, national approach of the English courts or the liberal, international approach of the Commonwealth countries. Following the middle path would help to discourage unethical trade practices which lead Indian consumers to presume franchise-like connections between foreign products and confusing or deceptively similar Indian products.

The court granted the injunction requested by the plaintiff.

In addition to the court equating the unauthorized use of well-known trademarks to "a franchise-like connection causing confusion", another interesting aspect of the case was the defendant's contention that it had adopted the trademark honestly. Refuting this argument, the court pointed out the shortcomings in the defendant's interpretation of the statute and emphasized that the respondent had established only adoption, and not 'honest adoption'.

The defendant's final argument that infringement would arise only if the trademark were used in relation to the same or similar goods was rejected. The court held that as this was a case of passing off, such issues were irrelevant.

3.3 Refusal of registration on grounds of passing off or under law of copyright – S.11(3)

3.4 Prior/ Vested Rights
Honest and Concurrent user – S.12, Prior user of mark and vested rights– S. 34, Name, Place of Business, Address or Description of Character or Quality of Goods or Services– S.35, Acquiescence – S. 33

S.12:  Registration in the case of honest concurrent use, etc.-
In the case of honest concurrent use or of other special circumstances which in the opinion of the Registrar, make it proper so to do, he may permit the registration by more than one proprietor of the trade marks which are identical or similar (whether any such trade mark is already registered or not) in respect of the same or similar goods or services, subject to such conditions and limitations, if any, as the Registrar may think fit to impose

Prior user of mark –
S. 34: Saving for vested rights.
Nothing in this Act shall entitle the proprietor or a registered user of registered trade mark to interfere with or restrain the use by any person of a trade mark identical with or nearly resembling it in relation to goods o services in relation to which that person or a predecessor in title of his has continuously used that trade mark from a date prior- (a) to the use of the first-mentioned trade mark in relation to those goods or services be the proprietor or a predecessor in title of his; or (b) to the date of registration of the first-mentioned trade mark in respect of those goods or services in the name of the proprietor of a predecessor in title of his; whichever is the earlier, and the Registrar shall not refuse (on such use being proved) to register the second mentioned trade mark by reason only of the registration of the first-mentioned trade mark.

Other rights –
S. 35: Saving for use of name, address or description of goods or services.
Nothing in this Act shall entitle the proprietor or a registered user of a registered trade mark to interfere with any bona fide use by a person of his own name or that of his place of business, or of the name, or of the name of the place of business, of any of his predecessors in business, or the use by any person of any bona fide description of the character or quality of his goods or services

Acquiescence –
S. 33: Effect of acquiescence.
(1) Where the proprietor of an earlier trade mark has acquiesced for a continuous period of five years in the use of a registered trade mark, being aware of that use, he shall no longer be entitled on the basis of that earlier trade mark- (a) to apply for a declaration that the registration of the later trade mark is invalid, or (b) to oppose the use of the later trade mark in relation to the goods or services in relation to which it has been so used, unless the registration of the later trade mark was not applied in good faith.

4. Passing off, Infringement and Exceptions to Infringement Action

4.1 Enlargement of Infringement protection – S. 29

Section 29. Infringement of registered trade marks.-
(1) A registered trade mark is infringed by a person who, not being a registered proprietor or a person using by way of permitted use, uses in the course of trade, a mark which is identical with, or deceptively similar to, the trade mark in relation to goods or services in respect of which the trade mark is registered and in such manner as to render the use of the mark likely to be taken as being used as a trade mark.
(2) A registered trade mark is infringed by a person who, not being a registered proprietor or a person using by way of permitted use, uses in the course of trade, a mark which because of- (a) its identity with the registered trade mark and the similarity of the goods or services covered by such registered trade mark; or (b) its similarity to the registered trade mark and the identity or similarity of the goods or services covered by such registered trade mark; or (c) its identity with the registered trade mark and the identity of the goods or services covered by such registered trade mark, is likely to cause confusion on the part of the public, or which is likely to have an association with the registered trade mark.
(3) In any case falling under clause (c) of sub-section (2), the court shall presume that it is likely to cause confusion on the part of the public.
(4) A registered trade mark is infringed by a person who, not being a registered proprietor or a person using by way of permitted use, uses in the course of trade, a mark which- (a) is identical with or similar to the registered trade mark; and (b) is used in relation to goods or services which are not similar to those for which the trade mark is registered; and (c) the registered trade mark has a reputation in India and the use of the mark without due cause takes unfair advantage of or is detrimental to, the distinctive character or repute of the registered trade mark.
(5) A registered trade mark is infringed by a person if he uses such registered trade mark, as his trade name or part of his trade name, or name of his business concern or part of the name, of his business concern dealing in goods or services in respect of which the trade mark is registered.
(6) For the purposes of this section, a person uses a registered mark, if, in particular, he- (a) affixes it to goods or the packaging thereof; (b) offers or exposes goods for sale, puts them on the market, or stocks them for those purposes under the registered trade mark, or offers or supplies services under the registered trade mark; (c) imports or exports goods under the mark; or (d) uses the registered trade mark on business papers or in advertising.
(7) A registered trade mark is infringed by a person who applies such registered trade mark to a material intended to be used for labeling or packaging goods, as a business paper, or for advertising goods or services, provided such person, when he applied the mark, knew or had reason to believe that the application of the mark was not duly authorized by the proprietor or a licensee.
(8) A registered trade mark is infringed by any advertising of that trade mark if such advertising- (a) takes unfair advantage of and is contrary to honest practices in industrial or commercial matters; or (b) is detrimental to its distinctive character; or (c) is against the reputation of the trade mark.
(9) Where the distinctive elements of a registered trade mark consist of or include words, the trade mark may be infringed by the spoken use of those words as well as by their visual representation and reference in this section to the use of a mark shall be construed accordingly.

4.2 For same, similar or different goods/services
4.3 Difference between passing off and infringement
Passing off- for similar goods/different goods/transborder reputation

8.Parley Products v. J P & Co, AIR 1972 SC 1359

The appellants filed a suit for an injunction restraining the respondents from infringing their registered trade mark used on packets of biscuits manufactured by them, The suit was dismissed by the trial court and the High Court. Allowing the appeal to this Court,

HELD : (1) Under the Trade and Merchandise Marks Act, 1958, a registered trade mark is infringed by a person who uses, in the course of trade, a mark which is identical with or deceptively similar to, the trade mark, in relation to any goods in respect of which the trade mark is, registered; and the expression 'deceptively similar' means a mark which so nearly resembles another mark as likely to deceive or cause confusion. In order to come to the conclusion whether one mark is deceptively similar to another the broad and essential features of the two are to be considered. They should not be placed side by side to find out if there are any differences in the design, and if so, whether they are of such character as to prevent one design from being mistaken for the other. It would be enough if the impugned mark bears such an overall similarity to the registered mark as would be likely to mislead a person usually dealing with one to accept the other if offered to him.
In this case, the packets of biscuits manufactured by the appellants and respondents were practically of the same size, the color scheme of the two wrappers was almost the same, and the designs on both, though not identical, bore such a close resemblance that one could easily be mistaken for the other. If one was not careful enough to note the peculiar features of the wrapper on the plaintiffs' goods, he might easily mistake the defendants' wrapper for the plaintiffs' if shown to him some time after he bad seen the plaintiffs' wrapper. Though the trial court and the High Court had concurrently found that the defendants' wrapper was not deceptively similar to that of the plaintiffs, the finding must be set aside as it was not arrived at on a proper consideration of the law.
(Source: IndianKanoon.Org)

9. Cadila Health Care Ltd v. Cadila Pharmaceuticals Ltd, 2001 PTC 541 (SC)

The appellants and the defendants are pharmaceutical companies manufacturing pharmaceutical products. The present suit was filed due to the injunction filed by the appellant against the defendant. The respondent was selling a medicine called “Falcitab”, and the appellant was selling a similar drug called “Falcigo”

Contention of the Plaintiff:
The Plaintiff alleged that the trademark of the defendant was similar to it’s own trademark. The appellant claims to have started the manufacture and production of “Falcigo” before the Defendant. Hence the plaintiff seeks an injunction against the defendant from the use of the word “Falcitab”, and claimed that the same would be passed off as appellant’s drug and this would lead to confusion and ultimately deception to the consumer.

Contention of the Defendant:
The defendants claim that the word “Falci” is a prefix for a mark, and is taken from the disease Phalcipharum Malaria and it is a common practice in pharmaceutical trade to use part of the word of the disease as a trade mark to indicate to the doctors and chemists that a particular drug is meant for a particular disease.

Moreover the two drugs in question are Schedule “L” drugs and cannot be sold over the counter. And hence there cannot be even the remotest chance for confusion.

Court:
The court in order to decide referred to a few judgments: -
In the case of National Sewing Thread co. Ltd. V. James Chadwick and Bros. Ltd[2]., the court had held that “no trademark nor part of a trademark shall be registered which consists of, or contains any scandalous design, or any matter the use of which would by reason of its being likely to deceive or to cause confusion has to be refused notwithstanding the fact that the trademark might not have close resemblance to each other”
The court propounded that it cannot be overlooked that the names of the drugs are English words, which according to the mass of the Indian people is a foreign word.

In the case of Amritdhara Pharmacy vs. Satya Deo[3],  the court had held that a question of deception should be looked at from the point of view of a man of average intelligence and imperfect recollection. To such a man the overall structure and phonetic similarity might appear similar.  The trade here relates to goods sold to illiterate or badly educated people, hence it is a misconception that a person educated in Hindi language will be easily be able to distinguish goods which have an English name.

In the case of R.J. Strasenburgh Co vs. Kenwood Laboratories, the court had held that physicians are not immune from confusion or mistake. Further more it is common knowledge that many prescriptions are telephoned to the pharmacists and others are handwritten, and there is a scope for errors.
The court propounded that physicians and pharmacists are not infallible. They are human and in common with the rest of mankind are subject to human frailties.

Judgment of the court:
The court held that drugs are poisons, not sweets and confusion between medicinal products may therefore, be life threatening, not merely inconvenient. Thus there such be as many as possible indications to distinguish between two medicinal products. It is not uncommon that in hospitals, drugs can be requested verbally. Many patients may be elderly, infirm or illiterate. They may not be in a position to differentiate between the medicine prescribed and medicine bought.
In a country like India there is no single common language, a large percentage of the population is illiterate and a small fraction know English. Hence due care has to be taken as confusion amongst medicines could have disastrous effects.

Hence the High Court with these views ordered the trial court to decide the suit keeping in mind the observations made in the present judgment
(Source: http://jurisonline.in/?p=375, Author: Nikhil Danak)

10. Carrefour v. V. Subburaman, 2007(35) PTC 225         [Discussed above]

11. Bata India Ltd. v. Pyare Lal & Co., AIR 1985 All 242

The plaintiff being a shoe manufacture had filed a suit against the defendant for passing off. Although the defendants were dealing with a totally different manufacturing product(foam), it was pertinent to pass injunction against the defendants for passing off, as there was some element of diminishment in the trademark acquired by the plaintiff.
Source: LawTeacher.Net

The court stated:  “How would the customers know that Bata were not producing foam?  It is well known that the name represented makers of shoes and other analogous products, but a question would arise in the mind of the lay consumers whether Bata were also producing foam.  Who is going to answer this question?  Does an ordinary customer ask the seller as to whose product it is?  The answer generally is in the negative.  He buys a thing on the basis of his own impression.”

12. Milmet Oftho Industries v. Allergen Inc., (2004) 12 SCC 624
[Use in India not critical]
The Appellants are an Indian Pharmaceutical company. The Respondents are also a Pharmaceutical company which manufacture pharmaceutical products in several countries. The Respondents filed a Suit for an injunction based on an action for passing off in respect of mark "OCUFLOX" used on a medicinal preparation manufactured and marketed by the Respondents. The Respondents claimed that they were the prior users of the mark OCUFLOX in respect of an eye care product containing Ofloxacin and other compounds. They claimed that they first used this Mark on 9th September, 1992, after which they marketed the product in other countries like Europe, Australia, South Africa and South America and that they had obtained registration in Australia, Bolivia, Ecuador, Mexico, Peru, South Africa, Canada and the United States of America. They claimed that they had also applied for registration of the mark in several other countries including India and that their applications were pending. The Appellants were selling "OCUFLOX" on a medicinal preparation containing CIPROFLOXACIN HCL to be used for the treatment of the eye and the ear. They claim that they coined the word "OCUFLOX" by taking the prefix "OCU" from "OCULAR" and "FLOX" from "CIPROFLOXACIN" which is the basic constituent of their product. The Appellants were granted registration by the Food and Drug Control Administration on 25th August, 1993. They have also applied for registration of the mark OCUFLOX in September 1993. Their application is also pending. On 18th December, 1996 the Respondents got an ad interim injunction. This injunction however was vacated on 29th January, 1997. The single Judge held that the Respondents' product was not being sold in India and the Appellants having introduced the product first in India, the Respondents were not entitled to an injunction. The Appeal filed by the Respondents had been allowed by the impugned Judgment. The impugned Judgment has taken note of the law laid down by this Court. It has been held that the Respondents were first in the market and therefore they were entitled to an injunction.

Held that non-use in India would be irrelevant if the plaintiff was the first in the world market. However, the decision carried a word of caution that foreign brand owners who have no intention of coming to or introducing their product in India should not be allowed to stifle an Indian company by not permitting it to sell a product in India, if the Indian company has genuinely adopted the mark and developed the product and is first in the Indian market.

13. Balakrishna Hatcheries v. Nandos International Ltd, 2007(35) PTC 295(Bom)

A trade mark infringement case was filed by Balkrishna Hatcheries (owner of Nandu brand) against Nando's International, an irish chain of restaurants, in India.

The Bombay High Court on Monday refused to grant an injunction against the South African food chain from using the Nando's trademark.

Justice DK Deshmukh held, "It is incredible to suggest that Nando's with its vast reputation would want to take advantage (much less unfair advantage) of the alleged repute of Nandu's registered trademark and for that purpose open the restaurant."
Noting that Nando's is a registered trademark in over 100 countries, Justice Deshmukh held that Nandu's has no reputation in India in restaurant/food outlets business or in sale of sauces.

14. Health and Glow Retailing Pvt. Ltd v. Dhiren Krishna Paul, Trading as Health and Glow Clinic, 2007(35) PTC 471(Mad)


15 Kapil Wadhwa v. Samsung Electronics Co. Ltd.,194(2012)DLT23; MIPR2012(3)191

4.4 Exceptions –S.30
16. Hawkins Cookers Limited v Murugan Enterprises, 2012(50)PTC389(Del)

Case Mat Decision Overruled by the Supreme Court
Facts:
1. The appellant is the registered proprietor of the trademark “HAWKINS” in respect of pressure cookers and parts thereof, including gaskets, falling under Class-21 of the erstwhile Trade and Merchandise Marks Act 1958.
2. The grievance relates to the respondent, M/s. Murugan Enterprises, manufacturing and selling gaskets under the trademark “MAYUR”. But on the packaging material it is printed as follows :
“Suitable for : Hawkins Pressure Cookers”
3. Whereas the words “suitable for” and “Pressure Cookers” are printed in black colour, the word “Hawkins” is printed in red colour and thus it is apparent that the intention is that the word “Hawkins” catches the eye.
4. The appellant alleges that by so writing on the packaging material, the respondent is infringing upon its registered trademark and the gaskets pertaining to pressure cookers are not manufactured by the respondent for any particular brand of pressure cooker, much less Hawkins Pressure Cookers and that the gaskets of pressure cookers can fit any pressure cooker manufactured by any manufacturer, for the reason all pressure cookers have the same dimensions of the mouth and hence the lid size, the only correlation is to the capacity of a pressure cooker i.e. 1 liter, 2 liter etc. Thus, the appellant contends that the respondent cannot use the word “Hawkins”, which is the trademark of the appellant, in relation to the goods gaskets.

Decision:
1. The gaskets manufactured by the respondent, as also other manufacturers, are neither designed, nor are capable of being designed, to be used in any particular kind of pressure cooker, for the reason all pressure cookers are so designed that the mouth of the pressure cooker and the corresponding lid is of same dimension; the only variation being with respect to the capacity of a pressure cooker. In other words, a gasket pertaining to a 1 liter capacity pressure cooker would fit all pressure cookers manufactured by all manufacturers.
2. It is further clarified that if in the sale it becomes reasonably necessary for the manufacturer of adaptable goods, to refer to the trademark of the relatable goods, such reference would not amount to an infringement of the trademark under which the relatable goods are sold, but has misapplied the evidence on record.
3. It is also further stated that the the respondent has given undue prominence to the word “Hawkins” by printing it in a distinct red colour and the remaining words of the sentence are printed in black colour.
The impugned judgment was set aside and the Defendant, therefore, is restrained from using the quote “suitable for Hawkins” in the said circumstances.


5. Trade Mark Dilution and Contemporary Areas (S.11(1), S.29(4), S.29(8))

17. ITC Limited v Philip Morris Products S.A., 2010(42) PTC 572 (Del)

In the dispute between ITC and Philip Morris & Others for the alleged trade mark dilution of ITC owned Welcome Group 'Namaste' logo by Philip Morris' stylized logo of the Marlboro trademark, the Delhi High Court has ordered that ITC is not entitled to a temporary injunction against Philip Morris.

The Delhi High Court refused to grant an injunction against the use of a device mark by Philip Morris in relation to its Marlboro brand of cigarettes in India. The trademark action filed by ITC was based on the registration and use of its W-namaste logo. The Delhi High Court held that the 1999 Act has enjoined protection against dilution, if the following essential elements are established –

the impugned mark is identical or similar to the senior mark;
the senior or injured mark has a reputation in India;
the use of the impugned mark is without due cause;
the use of the impugned mark (amounts to) taking unfair advantage of, or is detrimental to, the distinctive character or reputation of the registered trade mark.
It was further held that as the law does not provide for a presumption of infringement in the case of dilution of trade mark, each of the aforesaid elements has to be established before an injunction can be granted on this ground.

The court also said that the test of similarity of marks, namely dilution, was a notch higher than required in the said Act. It also held that in deciding the question of the similarity of the two marks in a dilution action, the Court must focus on the 'global' look rather than on the common elements of the two marks.

The court further held that though the 'aura' of the ITC mark could go beyond the niche hospitality services and extend to other luxury goods, there was nothing to show that such association could extend to cigarettes.

The court considered this aspect to be crucial as ITC itself sold cigarettes without the said mark. There was also nothing on record to show that the use of Phillip Morris's mark would be detrimental to the distinctive character of the ITC mark. The Court further held "In the case of logos and other marks, the application of the "identity" or "similarity" test has to result in a conclusion that the rival marks bear a very close resemblance, seen from an overall perspective.


Protection of Trade Dress & colour combinations; Tarnishment of Trade marks/Comparative Advertising/Disparagement See Also S 29 (8)

18. N Ranga Rao v. Anil Garg, 2006 (32) PTC 15 (Del)
N.Ranga Rao and Sons was a partnership firm engaged in the manufacture of incense sticks under
the trade name “LIA”. Anil Garg started selling his products under a similar trade name “DIA” and adopted packaging similar to that of the partnership firm. An amalgam of colour combinations, names and logos which creates a total identification with products was alleged to be copied. The Court laid down that to establish infringement the “trade dress” has to be seen as a whole and not in parts. Copying of the packaging of incense sticks and the colour scheme as well as trade name of a well-known product of the same range constitutes infringement and the suit for permanent injunction of the plaintiff in the case was successful.

Thus, the Indian position of trade dress protection is that one should rely on the following factors
before alleging infringement:
(1) The infringed mark should be distinctive.
(2) There should be deceptive similarity with the infringed mark so as to create confusion in the minds
of the consumers.
(3) The class of consumers targeted should be the same for the products of both the parties

19. Pepsi Co Inc v. Hindustan Coca Cola Ltd., 2003 (27) PTC 305 (Del) (DB)
The Delhi High Court held that while boasting about one’s product is allowed, disparaging a rival’s product is not. The Delhi High Court further held that if a commercial is depicted in a manner to condemn the competitor’s product, the commercial would be considered as disparaging.

20. Dabur India Ltd. v. Colgate Palmolive 2004 (29) PTC 401 (Del)

The Delhi High Court granted interim injunction to Dabur India Limited by restraining Colgate Palmolive India Ltd from telecasting a TV commercial of its new product 'Colgate Tooth Powder' on grounds that it is disparaging towards 'Dabur Lal Dant Manjan.

The suit:
Dabur India Limited, manufacturers of Dabur Lal Dant Manjan Powder' filed a suit and an application for interim injunction, prompted by an advertisement aired on television channels by Colgate Palmolive India Ltd for advertising their new product 'Colgate Tooth Powder'. The TV advertisement shows that a reputed film star is stopping customers from purchasing the red container/bottle which resembles Dabur's Lal Dant Manjan powder, and telling them the ill-effects of Dabur's product, thus disparaging its products.

Colgate Palmolive claimed that the advertisement does not identify and refer to Dabur's product, and there is nothing wrong if it praises its own product by pointing out the defects/deficiencies in the rival product.

Holding that the balance of convenience is in favour of Dabur India Ltd as the effect of the advertisement aired cannot be repaired readily, Delhi High Court granted interim injunction holding that generic disparagement of a rival product without specifically identifying or pin pointing the rival product is objectionable. The court further held that slandering of a rival product as bad is not permissible.


6. Exhaustion of IPR - Art. 6 TRIPs, S.29(6) Trade Marks Act, 1999, S. Patents Act, 1970

Exhaustion occurs at the moment when the intellectual property rights (IPR) holder’s control over the use and disposition of goods and services embodying IPR ceases in order to permit the free transfer of goods and services within and across national borders. This generally occurs when goods and services are first sold or placed on the market. According to the Resource Book on TRIPS and Development, “once the rights holder has been able to obtain an economic return from the first sale or placing on the market, the purchaser or transferee of the good or service is entitled to use and dispose of it without further restriction.” The doctrine of exhaustion has a direct effect on the control over the disposition of goods and services embodying the IPR rights and not the IPR themselves. It seems that the doctrine of exhaustion is treated more as a trade matter (disposition or transfer of good and services within and across national boarders) rather than an IPR matter (although the trade and IP aspects of IPR are often difficult to finely distinguish and are more often than not overlapping).

The different forms of exhaustion with respect to their scope are: international, regional and national. International exhaustion is the one with the largest scope. If a good or service is first sold or placed on the market of any country, then the IPRs as embodied in the good or service is deemed exhausted with regard to all the other countries in the world. The good or service first sold or placed can thereafter be more or less freely transferred and traded within and across the national borders of all countries worldwide. With regard to regional and national exhaustion, the principle is the same although the effect of the exhaustion of IPR as embodied in the good or service only applies, respectively, within a particular region or a particular country. Based on the Resource Book on TRIPS and Development, Japan, Switzerland, South Africa, countries in Latin America, Australia, United States, in general adhere to international exhaustion (subject to certain qualifications) and the European Union follows the rule of regional exhaustion.

Even if the rule of exhaustion deals primarily with the control and disposition of good and services themselves that embody IPR, it has an important role in trade. Without this rule, trade and different types of uses, transfers, dispositions and activities (whether political, social or economic) of goods and services will be severely impaired because too much control will be granted to the IPR holder. For example, commonplace acts like lending a book to another person to read, selling a used CD or recycling used juice containers and turning them into useful bags and accessories, can be prohibited by the IPR holder. This would result in too much a restriction on the free exchange of good and services in the national, regional and global markets. The a priori assumption here of course is that free exchange of good and services within and across national borders is beneficial for commerce, economic development, increased innovation and the sharing of cultures and knowledge. In a way, exhaustion regulates how the physical embodiments of IPR are controlled and transferred in order to ensure that there is a balance between the rights of IPR holders and those of the general public and, on a macro level, the larger international community. The doctrine of exhaustion is a counterbalance to the quasi-monopolistic rights of IPR holders to exclude others from the use and control over their IPR as embodied in such goods and services.

Under Article 6 of the TRIPS Agreement, it seems that, except when it involves the principles of national treatment and most favored nation, for purposes of dispute settlement, in general, the Agreement does not create, modify, extinguish or change any rule, right or principle in connection with the issue of exhaustion of IPR. This hands-off policy was a result of the failure of the members to agree on any exhaustion rules during the negotiations of the Agreement. In a sense, Article 6 is an agreement not to agree at that time. It is important to note that Article 28 of the Agreement is subject to Article 6, which means that the right of importation under Article 28 cannot be “used to address the subject matter of exhaustion in dispute settlements under TRIPS.” Article 28 then does not directly affect the rule of exhaustion.


7. Licencing of Trade Marks – Ss.48 – 53

48. Registered users.—

(1) Subject to the provisions of section 49, a person other than the registered proprietor of a trade mark may be registered as a registered user thereof in respect of any or all of the goods or services in respect of which the trade mark is registered.

(2) The permitted use of a trade mark shall be deemed to be used by the proprietor thereof, and shall be deemed not to be used by a person other than the proprietor, for the purposes of section 47 or for any other purpose for which such use is material under this Act or any other law.

49. Registration as registered user.—

(1) Where it is proposed that a person should be registered as a registered user of a trade mark, the registered proprietor and the proposed registered user shall jointly apply in writing to the Registrar in the prescribed manner, and every such application shall be accompanied by—

(a) the agreement in writing or a duly authenticated copy thereof, entered into between the registered proprietor and the proposed registered user with respect to the permitted use of the trade mark; and

(b) an affidavit made by the registered proprietor or by some person authorised to the satisfaction of the Registrar to act on his behalf,—

(i) giving particulars of the relationship, existing or proposed, between the registered proprietor and the proposed registered user, including particulars showing the degree of control by the proprietor over the permitted use which their relationship will confer and whether it is a term of their relationship that the proposed registered user shall be the sole registered user or that there shall be any other restriction as to persons for whose registration as registered users application may be made;

(ii) stating the goods or services in respect of which registration is

proposed;

(iii) stating the conditions or restrictions, if any, proposed with respect to the characteristics of the goods or services, to the mode or place of permitted use, or to any other matter;

(iv) stating whether the permitted use is to be for a period or without limit of period, and, if for a period, the duration thereof; and

(c) such further documents or other evidence as may be required by the Registrar or as may be prescribed.

(2) When the requirements of sub-section (1) have been complied with, the Registrar shall register the proposed registered user in respect of the goods or services as to which he is so satisfied.

(3) The Registrar shall issue notice in the prescribed manner of the registration of a person as a registered user, to other registered users of the trade mark, if any.

(4) The Registrar shall, if so requested by the applicant, take steps for securing that information given for the purposes of an application under this section (other than matters entered in the register) is not disclosed to rivals in trade.

50. Power of Registrar for variation or cancellation of registration as registered user.—

(1) Without prejudice to the provisions of section 57, the registration of a person as registered user—

(a) may be varied by the Registrar as regards the goods or services in respect of which it has effect on the application in writing in the prescribed manner of the registered proprietor of the trade mark;

(b) may be cancelled by the Registrar on the application in writing in the prescribed manner of the registered proprietor or of the registered user or of any other registered user of the trade mark;

(c) may be cancelled by the Registrar on the application in writing in the prescribed manner of any person on any of the following grounds,

namely:—

(i) that the registered user has used the trade mark otherwise than in accordance with the agreement under clause (a) of sub-section (1) of section 49 or in such way as to cause or to be likely to cause, deception or confusion;

(ii) that the proprietor or the registered user misrepresented, or failed to disclose, some fact material to the application for registration which if accurately represented or disclosed would not have justified the registration of the registered user;

(iii) that the circumstances have changed since the date of registration in such a way that at the date of such application for cancellation they would not have justified registration of the registered user;

(iv) that the registration ought not to have been effected having regard to rights vested in the applicant by virtue of a contract in the performance of which he is interested;

(d) may be cancelled by the Registrar on his own motion or on the application in writing in the prescribed manner by any person, on the ground that any stipulation in the agreement between the registered proprietor and the registered user regarding the quality of the goods or services in relation to which the trade mark is to be used is either not being enforced or is not being complied with;

(e) may be cancelled by the Registrar in respect of any goods or services in relation to which the trade mark is no longer registered.

(2) The Registrar shall issue notice in the prescribed manner in respect of every application under this section to the registered proprietor and each registered user (not being the applicant) of the trade mark.

(3) The procedure for cancelling a registration shall be such as may be prescribed:

Provided that before cancelling of registration, the registered proprietor shall be given a reasonable opportunity of being heard.

Comments

Registration of registered user may be varied or cancelled, inter alia, on the ground that the registered user has used the trade mark not in accordance with the agreement or the proprietor/user has failed to disclose any material facts for such registration or that the stipulation in the agreement regarding the quality of goods is not enforced or that the circumstances have changed since the date of registration, etc. Notice and opportunity of hearing is provided before cancellation of registration.

51. Power of Registrar to call for information relating to agreement in respect of registered users.—

(1) The Registrar may, at any time during the continuance of the registration of the registered user, by notice in writing, require the registered proprietor to confirm to him within one month that the agreement filed under clause (a) of sub-section (1) of section 49 continues to be in force.

(2) If the registered proprietor fails to furnish the confirmation within one month as required under sub-section (1), the registered user shall cease to be the registered user on the day immediately after the expiry of the said period and the Registrar shall notify the same.

52. Right of registered user to take proceedings against infringement.—

(1) Subject to any agreement subsisting between the parties, a registered user may institute proceedings for infringement in his own name as if he were the registered proprietor, making the registered proprietor a defendant and the rights and obligations of such registered user in such case being concurrent with those of the registered proprietor.

(2) Notwithstanding anything contained in any other law, a registered proprietor so added as defendant shall not be liable for any costs unless he enters an appearance and takes part in the proceedings.

53. No right of permitted user to take proceeding against infringement.—

A person referred to in sub-clause (ii) of clause (r) of sub-section (1) of section 2 shall have no right to institute any proceeding for any infringement.

Permission of Central Government not required in 1999 Act
Necessity of Actual Quality Control
Paradox of Quality Control
Supremacy of Licencing Agreement

21. Pioneer HiBred v. Pioneer Seeds, 1990 IPLR 17

22.Baker Huges Ltd v. Hiroo Khushalini, 1998 PTC 580; 2004 PTC 153 (SC)

23. MTV Holdings v. Mistrale Publishing Pvt. Ltd, 2005 (30) PTC 489 (Del)

24. Gujarat Bottling v. Coca Cola, AIR 1995 SC 2372

3. Geographical Indications
[Legislation: The Geographical Indications of goods (Registration and Protection) Act, 1999, in force from 15th Sep., 2003]
1. Definitions- ‘Geographical Indication’ (S.2 (e)), ‘Indication’ (s.2 (g)), ‘Goods’ (S.2 (f)), ‘Producer’ (S.2 (k)), Certification Trade Mark, Collective Marks
2. Concept of Indication of source, Geographical Indication and appellations of origin, Community Right
3. Kinds of Geographical Indications and Registration

Procedure for registration (Ss 3-8, 11 to 17)
Grounds for Refusal of Registration of GI’s (S.9)
Section 9. Prohibition of Registration of certain geographical indications

 A geographical indication:

(a) the use of which would be likely to deceive or cause confusion; or

 (b) the use of which would be contrary to any law for the time being in force; or

 (c) which comprises or contains scandalous or obscene matter; or

(d) which comprise or contains any matter likely to hurt the religious susceptibilities of any class or section of the citizens of India; or

 (e) which would otherwise be disentitled to protection in a court; or

(f) which are determined to be generic names or indications of goods and are, therefore, not or ceased to be protected in their country of origin, or which have fallen into disuse in that country; or

 (g) which although literally true as to the territory, region or locality in which the goods originate, but falsely represent to the persons that the goods originate in another territory, region or locality, as the case may be,

shall not be registered as a geographical indication.

Explanation 1: For the purposes of this section, “generic names or indications” in relation to goods, means the name of a goods which, although relates to the place or the region where the goods was originally produced or manufactured, has lost its original meaning and has become the common name of such goods and serves as a designation for or indication of the kind, nature, type or other property or characteristic of the goods.

Explanation 2: In determining whether the name has become generic, account shall be taken of all factors including the existing situation in the region or place in which the name originates and the area of consumption of the goods.


Registration of homonymous Geographical Indications (S.10)

Section 10. Registration of homonymous geographical indications
Subject to the provisions of Section 7, a homonymous geographical indication may be registered under this Act, if the Registrar is satisfied, after considering the practical conditions under which the homonymous indication in question shall be differentiated from other homonymous indications and the need to ensure equitable treatment of the producers of the goods concerned, that the consumers of such goods shall not be confused of misled in consequence of such registration.


Duration of protection and renewal(Ss18-19)

Section 18. Duration, renewal, Removal and Restoration of registration

(1) The registration of a geographical indication shall be for a period of ten years, but may be renewed from time to time in accordance with the provisions of this section.

 (2) The registration of an authorised user shall be for a period of ten years or for the period till the date on which the registration of the geographical indication in respect of which the authorised user is registered expires, whichever is earlier.

(3) The Registrar shall, on application made in the prescribed manner, by the registered proprietor or by the authorised user and within the prescribed period and subject to the payment of the prescribed fee, renew the registration of the geographical indication or authorised user, as the case may be, for a period of ten years from the date of expiration of the original registration or of the last renewal of registration, as the case may be (which date is in this section referred to as the expiration of the last registration).

 (4) At the prescribed time before the expiration of the last registration of a geographical indication or the authorised user, as the case may be, the Registrar shall send notice in the prescribed manner to the registered proprietor or the authorised user, as the case may be, of the date of expiration and the conditions as the payment of fees and otherwise upon which a renewal of registration may be obtained, and, if at the expiration of time prescribed in that behalf those conditions have not been duly complied with, the Registrar may remove the geographical indication or the authorised user, as the case may be, from the register.

 Provided that the Registrar shall not remove the geographical indication or the authorised user, as the case may be, from the register, if an application is made in the prescribed form and the prescribed fee and surcharge is paid within six months from the expiration of the last registration of the geographical indication or the authorised user, as the case may be, and shall renew the registration of geographical indication or the authorised user as the case may be, for a period of ten years under sub-section (3).

 (5) Where a geographical indication or authorised user, as the case may be, has been removed from the register for non-payment of the prescribed fee, the Registrar shall, after six months and within one year from the expiration of the last registration of the geographical indication or the authorised user, as the case may be, on receipt of an application in the prescribed form and on payment of the prescribed fee, if satisfied that it is just to do so, restore the geographical indication or the authorised user, as the case may be, to the register and renew registration of the geographical indication or authorised user, as the case may be, either generally or subject to such condition or limitation as he thinks fit to impose, for a period of ten years from the expiration of the last registration.

Section 19. Effect of Removal from Register for Failure to Pay fee for renewal

Where a geographical indication has been removed from the register for failure to pay the fee for renewal, it shall nevertheless, for the purpose of any application for the registration of another geographical indication during one year, next after the date of removal, be deemed to be a ‘geographical indication already on the register, unless the tribunal is satisfied either-

 (a) that there has been no bona fide trade use of the geographical indication which has been removed within the two years immediately preceding its removal; or

(b) that no deception or confusion would be likely to arise from the use of the geographical indication which is the subject of the application for registration by reason of any previous use of the geographical indication which has been removed.

4. Infringement, penalties and remedies(Ss. 20-23, Chapter Ss. 37-54, Ss. 66-67, Rules for allowing use of registered GI by authorised users)

Section 20. No action for infringement of unregistered geographical indication

(I) No person shall be entitled to institute any proceeding to prevent, or to recover damages for, the infringement of an unregistered geographical indication.

(2) Nothing in this Act shall be deemed to affect rights of action against any person for passing off goods as the goods of another person or the remedies in respect thereof.

Section 21. Rights conferred by registration

 (I) Subject to the other provisions of this Act, the registration of a geographical indication shall, if valid, give,-

 (a) to the registered proprietor of the geographical indication and the authorised user or users thereof the right to obtain relief in respect of infringement of the geographical indication in the manner provided by this Act;

(b) to the authorised user thereof the exclusive right to the use of the geographical indication in relation to the goods in respect of which the geographical indication is registered.

 (2) The exclusive right to the use of a geographical indication given under clause (b) of sub-section (1) shall be subject to any condition and limitation to which the registration is subject.

 (3) Where the two or more persons are authorised users of geographical indications, which are identical with or nearly resemble each other, the exclusive right to the use of any of those geographical indications shall not (except so far as their respective rights are subject to any conditions or limitations entered on the register) be deemed to have been acquired by anyone of those persons as against any other of those persons merely by registration of the geographical indications, but each of those persons has otherwise the same rights as against other persons as he would have if he were the sole authorised user.

 Section 22. Infringement or registered geographical indications

 (1) A registered geographical indication is infringed by a person who, not being an authorised user thereof,-

 (a) uses such geographical indication by any means in the designations or presentation of goods that indicates or suggests that such goods originate in a geographical area other than the true place of origin of such goods in a manner which misleads the persons as to the geographical origin of such goods; or

 (b) uses any geographical indication in such manner which constitutes an act of unfair competition including passing off in respect of registered geographical indication.

 Explanation 1:- For the purposes of this clause, “act of unfair competition” means any act of competition contrary to honest practices in industrial or commercial matters.

 Explanation 2:- For the removal of doubts, it is hereby clarified that the following acts shall be deemed to be acts of unfair competition, namely:-

(i)all acts of such a nature as to create confusion by any means whatsoever with the establishment, the goods or the industrial or commercial activities, of a competitor;

 (ii) false allegations in the course of trade of such a nature as to discredit the establishment, the goods or the industrial or commercial activities, of a competitor;

 (iii) geographical indications, the use of which in the course of trade is liable to mislead the persons as to the nature, the manufacturing process, the characteristics, the suitability for their purpose, or the quantity, of the goods;

(b) uses another geographical indication to the goods which, although literally true as to the territory, region or locality in which the goods originate, falsely represents to the persons that the goods originate in the territory, region or locality in respect of which such registered geographical indication relates.

(2) The Central Government may, if it thinks necessary so to do for providing additional protection to certain goods or classes of goods under sub-section (3), by notification in the Official Gazette, specify such goods or class or classes of goods, for the purposes of such protection.

(3) Any person who is not an authorised user of a geographical indication registered under this Act in respect of the goods or any class or classes of goods notified under sub-section (2), uses any other geographical indication to such goods or class or classes of goods not originating in the place indicated by such other geographical indication or uses such other geographical indication to such goods or class or classes of goods even indicating true origin of such goods or uses such other geographical indication to such goods or class or classes of goods in translation of the true place of origin or accompanied by expression such as “kind”, “style”, “imitation”, or the like expression, shall infringe such registered geographical indication.

(4) Notwithstanding anything contained in this section, where the goods in respect of which a geographical indication has been registered are lawfully acquired by a person other than the authorised user of such geographical indication, further dealings in those goods by such person including processing or packaging, shall not constitute an infringement of such geographical indication, except where the condition of goods is impaired after they have been put in the market.

Section 23. Registration to be prima facie Evidence of validity

 (1) In all legal proceedings relating to a geographical indication, the certificate of registration granted in this regard by the Registrar under this Act, being a copy of the entry in the register under the seal of the Geographical Indications Registry, shall be prima facie evidence of the validity thereof and be admissible in all courts and before the Appellate Board without further proof or production of the original.

(2) Nothing in this section shall be deemed to be affect of the right of action in respect of an unregistered geographical indication.

Section 37. Meaning of applying geographical indications
Section 38. Falsifying and falsely applying geographical indications
Section 39. Penalty for applying false geographical indications
Section 40. Penalty for selling goods to which false geographical indication is applied
Section 41. Enhanced penalty on second or subsequent conviction
Section 42. Penalty for falsely representing a Geographical indication as registered
Section 43. Penalty for improperly describing a place of business as connected with the Geographical Indications Registry
Section 44. Penalty for falsification of entries in the register
Section 45. No offence in certain cases
Section 46. Forfeiture of goods
Section 47. Exemption of certain persons employed in ordinary course of business
Section 48. Procedure where invalidity of registration is pleaded by the accused
 Section 49. Offences by companies
Section 50. Cognizance of certain offences and the powers of police officer for search and seizure
Section 51. Costs of defence of prosecution
Section 52. Limitation of prosecution
Section 53. Information as to commission of offence
Section 54. Punishment for abatement in India of acts done out of India

Section 66. Suit for infringement, etc., to be instituted before district court

 (1) No suit,-

(a) for the infringement of a registered geographical indication; or

(b)relating to any right in a registered geographical indication; or

(c) for passing of arising out of the use by the defendant of any geographical indication which is identical with or deceptively similar to the geographical indication relating to the plaintiff, whether registered or unregistered, shall be instituted in any court inferior to a district court having jurisdiction to try the suit.

 (2) For the purpose of clauses (a) and (b) of sub-section (1), a “district court having jurisdiction” shall, notwithstanding anything contained in the Code of Civil Procedure, 1908, or any other law for the time being in force, include a district court within the local limits of whose jurisdiction, at the time of the institution of the suit or other proceeding, the person instituting the suit or proceeding, or, where there are more than one such persons any of them, actually and voluntarily resides or carries on business or personally works for gain.

Explanation.- For the purposes of sub-section (2), “person” includes the registered proprietor and the authorised user.

Section 67. Relief in suit for infringement or for passing off

(1) The relief which a court may grant in any suit for infringement or for passing off referred to in section 66 includes injunction (subject to such terms, if any, as the court thinks fit) and at the option of the plaintiff, either damages or account of profits, together with or without any order for the delivery- up of the infringing labels and indications for destruction or erasure.

(2) The order of injunction under sub-section(1) may include an ex parte injunction or any interlocutory order for any of the following matters, namely:-

(a) for discovery of documents;

(b) preserving of infringing goods, documents or other evidence which are related to the subject matter of the suit;

 (c) restraining the defendant from disposing of or dealing with his assets in a manner which may adversely affect plaintiff’s ability to recover damages, costs or other pecuniary remedies which may be finally awarded to the plaintiff.

(3) Notwithstanding anything contained in sub-section (1), the court shall not grant relief by way of damages (other than nominal damages) on account of profits in any case-

 (a) where in a suit for infringement the defendant satisfies the court-

(i) that at the time he commenced to use the geographical indication complained of in the suit he was unaware and had no reasonable ground for believing that the geographical indication of the plaintiff was on the register; and

(ii) that when he became aware of the existence and nature of the plaintiff’s right in the geographical indication, he forthwith ceased to use the geographical indication in relation to good in respect of which it was registered; or

(b) where in a suit for passing off, the defendant satisfies the court-

(i) that at the time he commenced to use the geographical indication complained of in the suit he was unaware and had no reasonable ground for believing that the geographical indication relating to the plaintiff was in use; and

 (ii) that when he became aware of the existence and nature of the geographical indication relating to the plaintiff he forthwith ceased to use the geographical indication complained of.

5. Conflict of GI’s with Trade marks (Ss. 25-26)

Section 25. Prohibition of registration of geographical indication as trade mark

Notwithstanding anything contained in the Trade Marks Act, 1999, the Registrar of Trade Marks referred to in Section 3 of that Act, shall, suo motu or at the request of an interested party, refuse or invalidate the registrations of a trade mark which-

(a) contains or consists of a geographical indication with respect to the goods or class or classes of goods not originating in the territory of a country , or a region or locality in that territory which such geographical indication indicates, if use of such geographical indications in the trade mark for such goods, is of such a nature as to confuse or mislead the persons as to the true place of origin of such goods or class or classes of goods;

(b) Contains or consists of a geographical indication identifying goods or class or classes of goods notified under sub-section (2) of Section 22.

Section 26. Protection to certain Trade marks

(1) Where a trade mark contains or consists of a geographical indication and has been applied for or registered in good faith under the law relating to trade marks for the time being in force, or where rights to such trade mark have been acquired through use in good faith either-

(a) Before the commencement of this Act; or

(b) Before the date of filing the application for registration of such geographical indication under this Act; nothing contained in this Act shall prejudice the registrability or the validity of the registration of such trade mark under the law relating to the trade marks for the time being in force, or the right to use such trade mark, on the ground that such trade mark is identical with or similar to such geographical indication.

(2) Nothing contained in this Act shall apply in respect of a geographical indication with respect to goods or class or classes of goods for which such geographical indication is identical with the term customary in common language as the common name of such goods in any part of India on or before the 1st day of January, 1995.

(3) Nothing contained in this Act shall in any way prejudice the right of any person to use, in the course of trade, that person’s name or the name of that person’s predecessor in business, except where such name is used in such a manner as to confuse or mislead the people.

 (4) Notwithstanding anything contained in the Trade Marks Act, 1999 or in this Act, no action in connection with the use or registration of a trade mark shall be taken after the expiry of five years from the date on which such use or registration infringes any geographical indication registered under this Act has become known to the registered proprietor or authorised user registered in respect of such geographical indication under this Act or after the date of registration of the trade mark under the said Trade Marks Act subject to the condition that the trade mark has been published under the provisions of the said Trade Marks Act, 1999 or the rules made there under by that date, if such date is earlier than the date on which such infringement became known to such proprietor or authorised user and such geographical indication is not used or registered in bad faith.

Geographical Indication means an indication which identifies such goods as agricultural goods, natural goods or manufactured goods as originating, or manufactured in the territory, where a given quality, reputation or other characteristics of such goods is essentially attributable to its geographical origin ad in case where such goods are manufactured goods one of the activities of either the production or of processing or preparation of the goods concerned takes place in such territory, region or locality, as the case maybe.

The Indian law explicitly extends the protection to geographical indication used not only for agricultural products, but also for manufactured goods, though generally the use of geographical indication maybe more predominant in respect of agricultural products where such products typically have qualities attributable to the specific geographical area, influenced by factors such as climate, soil, etc.

The function of a geographical indication is that it point to a specific place or region of production that determines the characteristic qualities of the product that originates from there. It is important that the product derives its qualities and reputation from that place. Since those qualities depend on the geographical place of production.

PERSON ELIGIBLE FOR REGISTRATION

Any association of person, producers, organization or authority established by or under the law can apply.
The applicant must represent the interests of the producers.
The application should be in writing in the prescribed Form.

BENEFITS OF REGISTRATION

It confers legal protection to geographical indications in India.
It prevents unauthorized use of a registered geographical Indication by others.
It boosted exports of Indian geographical indications by providing legal protection.
It promotes economic prosperity of producers.
It enables seeking legal protection in other WTO member countries

PROHIBITIONS AGAINST USE OF GI
Indications which are likely to deceive or cause confusion.
Indications which would be contrary to any law.
Indications which contain scandalous or obscene matter.
Indications which would hurt the religious sentiments of people.
Indications which are generic in character


RIGHTS CONFERRED BY REGISTRATION
The proprietor of the geographical indication and the authorized user are conferred exclusive right to the use of a geographical indication in relation to goods to which the registration is obtained.

The proprietor or the authorized user of the geographical indications also has a right to file a suit for infringement of his right. The relief which a court may grant in any suit of infringement or passing off, includes injunction and at the option of the plaintiff, either damages or account of profits, together with or without any order for the delivery – up of the infringing labels and indications for destruction or erasure.

These rights conferred are not absolute, but there are certain conditions and limitations which can be imposed on the exclusive right. Such as
Limitation condition as to the area within which the registration is to operate.
Condition that the registered geographical indication shall not be used in respect of certain specific goods.


REGULATORY BODIES
There are two regulatory authorities.
The Registrar of Geographical Indication
The Appellate Board

The Controller General of Patents, Designs & Trademarks will be the Registrar of Geographical Indication.

The Central Government appoints certain officers for the purpose of discharging certain functions under the superintendence and direction of the Registrar. The Registrar's power of superintendence and direction could also be interpreted to imply the power to withdraw a matter from one hearing officer and deal with such matter either himself or transfer the same to another hearing officer. The registrar may no be able to delegate the power, to withdraw or transfer case, vested in him to any other functionary.

The Registry is established for the purpose of
Making an application for registration of geographical indication
For registration as an authorized user
For giving notice of opposition
For filing application for rectification or
Any other proceeding

GEOGRAPHICAL INDICATION AND TRADEMARK

The difference between Geographical Indication and Trade Mark are that the former indicates the source of the product, meaning the geographical jurisdiction from which the product has originated, which has a reputation for certain characteristics attributable to that place of production or manufacture and the later is a sign which is used in the course of trade and it distinguishes goods or services of one enterprise from those of other enterprises.

A trademark is proprietary in nature, with exclusive right on the owner to use the mark, but geographical indication represents a common heritage of the community of producers in the geographical region or locality, whose product all share the same qualities and characteristics, so that geographical indication may be used by all the producers engaged in the production in that region or locality

GEOGRAPHICAL INDICATION AND COLLECTIVEMARK

A geographical indication is not a collective mark but it identifies particular goods as originating in a certain country, region or locality, where a given quality, reputation or other characteristics of the goods is essentially, where a given quality, reputation or other characteristics of the goods is essentially attributable to its geographical origin comprising natural environment and human factors.

Whereas, a collective mark is a mark which belongs to a group or association of persons and the use is reserved only for members of the group not being a partnership within the meaning of Partnership Act. It is intended merely to distinguish the goods or services of such association of persons from those of others.

The Law prohibits the registration of the trademark which contains or consists of geographical indication with respect to goods not originating in the territory indicated, if use of the indication in the trade mark for such goods in that country is of such a nature as to mislead the public as to the true place of origin.

GEOGRAPHICAL INDICATION AND APPELLATION OF ORIGIN

A geographical indication (GI) is a sign used on goods that originate in a specific geographical area and possess qualities or a reputation that are due to characteristics peculiar to that particular place. The TRIPS agreement defines it as an "indication which identifies a good as originating in the territory of a country, or a region, or a locality in that territory, where a given quality, reputation or other characteristics of the good is essentially attributable to its geographical origin."

An appellation of origin is a special kind of GI used on products that have a specific quality that is exclusively or essentially due to the geographical environment from which the products emerge. This is defined in the TRIPS agreement as "the geographical name of a country, region or locality, which serves to designate a product originating therein, the quality and characteristics of which are due exclusively to the geographical environment, including natural and human factors."

The only difference between a GI and an appellation of origin is that GI includes reputation, which is not necessary in the case of appellation of origin. Appellations of origin may be used to protect products of a special region – e.g. Kashmiri shawls, Champagne, etc. Under the TRIPS agreement, the definition of GI includes appellation of origin.



When any of the rights of proprietor or authorized user is violated there would be an infringement of the rights. A registered geographical indication is infringed by a person who, not being the registered proprietor or authorized user, uses such indication on the goods or suggests that such goods originate in some other geographical area other than the true origin of the goods which mislead the public.

It is also infringed by any use that constitutes an act of "unfair competition".

A Geographical Indication is also infringed by a person who not being the registered proprietor or an authorized user uses another Geographical indication to the goods and falsely represents to the public that the goods originate in the region, territory or a locality in respect of which such registered geographical indication relates.

If the false geographical indication is established, it carries penalty with imprisonment for a term which shall not be less than six months but which may extend to three years and with fine which shall not be less than fifty thousand rupees but may extend to two lakh rupees.

4. Industrial Designs Law
[Legislation: The Designs Act, 2000]

4.1 Need for protection of industrial designs


4.2 Subject matter of Protection - Design, S.2(d), Original, S.2(g), new or original, appeal to eye, copyright S.2(c)

Section 2. Definition
 In this Act, unless there is anything repugnant in the subject or context.

 (c) “copyright” means the exclusive right to apply a design to any article in any class in which the design is registered;

 (d) “design” means only the features of shape, configuration, pattern, ornament or composition of lines or colours applied to any article whether in two dimensional or three dimensional or in both forms, by any industrial process or means, whether manual, mechanical or chemical, separate or combined, which in the finished article appeal to and are judged solely by the eye; but does not include any mode or principle of construction or anything which is in substance a mere mechanical device, and does not include any trade mark as defined in clause (v) of sub-section (1) of section 2 of the Trade and Merchandise Marks Act, 1958 or property mark as defined in section 479 of the Indian Penal Code or any artistic work as defined in clause (c) of section 2 of the Copyright Act, 1957

(g) “original”, in relation to a design, means originating from the author of such design and includes the cases which though old in themselves yet are new in their application;

(j) “proprietor of a new or original design”,-

(i) where the author of the design, for good consideration, executes the work for some other person, means the person for whom the design is so executed;

(ii) where any person acquires the design or the right to apply the design to any article, either exclusively of any other person or otherwise, means, in the respect and to the extent in and to which the design or right has been so acquired, the person by whom the design or right is so acquired; and

(iii) in any other case, means the author of the design; and where the property in or the right to apply, the design has devolved from the original proprietor upon any other person, includes that other person.

4.3 Copyright in Design (duration)– S.11
Section 11. Copyright on registration

(1) When a design is registered, the registered proprietor of the design shall, subject to the provisions of this Act, have copyright in the design during ten years from the date of registration.

 (2) If, before the expiration of the said ten years, application for the extension of the period of copyright is made to the Controller in the prescribed manner, the Controller shall, on payment of the prescribed fee, extend the period of copy-right for a second period of five years from the expiration of the original period of ten years.

4.4 Registration of design for articles – Ss.3-9 (No provision for opposition)
Section 3. Controller and other officers

(1) The Controller General of Patents, Designs and Trade Marks appointed under sub-section (1) of section 4 of the Trade and Merchandise Marks Act, 1958 shall be the Controller of Designs for the purposes of this Act.

(2) For the purposes of this Act, the Central Government may appoint as many examiners and other officers and with such designations, as it thinks fit.

 (3) Subject to the provisions of this Act, the officers appointed under sub-section (2) shall discharge under the superintendence and directions of the Controller such functions of the Controller under this Act as he may, from time to time by general or special order in writing, authorise them to discharge.

(4) Without prejudice to the generality of the provisions of sub-section (3), the Controller may by order in writing and for reasons to be recorded therein, withdraw any matter pending before an officer appointed under sub-section (2) and deal with such mater himself either de novo or from the stage it was so withdrawn or transfer the same to another officer appointed under sub-section (2) who may, subject to special directions in the order of transfer, proceed with the matter either de novo or from the stage it was so transferred.

Section 4. Prohibition of registration of certain designs

A design which

 (a) is not new or original; or

b) has been disclosed to the public anywhere in India or in any other country by publication in tangible form or by use or in any other way prior to the filing date, or where applicable, the priority date of the application for registration; or

(c) is not significantly distinguishable from known designs or combination of known designs; or

(d) comprises or contains scandalous or obscene matter shall not be registered.

Section 5. Application registration of designs

(1) The Controller may, on the application of any person claiming to be the proprietor of any new or original design not previously published in any country and which is not contrary to public order or morality, register the design under this Act.

Provided that the Controller shall before such registration refer the application for examination, by an examiner appointed under sub-section (2) of section 3, as to whether such design is capable of being registered under this Act and the rules made thereunder and consider the report of the examiner on such reference.

(2) Every application under Sub-Section (1) shall be in the prescribed form and shall be filed in the Patent Office in the prescribed manner and shall be accompanied by the prescribed fee.

(3) A design may be registered in not more than one class, and, in case of doubt as to the class in which a design ought to be registered, the Controller may decide the question.

 (4) The Controller may, if he thinks fit, refuse to register any design presented to him for registration; but any person, person aggrieved by any such refusal may appeal to the High Court.

 (5) An application which, owing to any default or neglect on the part of the applicant, has not been completed so as to enable registration to be effected within the prescribed time shall be deemed to be abandoned.

(6) A design when registered shall be registered as of the date of the application for registration.

 Section 6. Registration on to be in respect of particular article

(1) A design may be registered in respect of any or all of the articles comprised in a prescribed class of articles.

(2) Any question arising as to the class within which any article falls shall be determined by the Controller whose decision in the matter shall be final.

(3) Where a design has been registered in respect of any article comprised in a class of article, the application of the proprietor of the design to register it in respect of some one or more other articles comprised in that class of articles shall not be refused, nor shall the registration thereof invalidated.

(a) on the ground of the design not being a new or original design, by reason only that it was so previously registered; or

(b) on the ground of the design having been previously published in India or in any other country, by reason only that it has been applied to article in respect of which it was previously registered:

 Provided that such subsequent registration shall not extend the period of copyright in the design beyond that arising from previous registration.

(4) Where any person makes an application for the registration of a design in respect of any article and either-

(a) that design has been previously registered by another person in respect of some other article; or

(b) the design to which the application relates consists of a design previously registered by another person in respect of the same or some other article with modifications or variations not sufficient to alter the character or substantially to affect the identity thereof, then, if at any time while the application is pending the applicant becomes the registered proprietor of the design previously registered, the foregoing provisions of the section shall apply as if at the time of making the application the applicant had been the registered proprietor of that design.

Section 7. Publication of particulars of registered Design

The Controller shall, as soon as may be after the registration of a design, cause publication of the prescribed particulars of the design to be published in such manner as may be prescribed and thereafter the design shall be open to public inspection.

Section 8. Power of Controller to make orders regarding substitution of application etc.

(1) If the Controller is satisfied on a claim made in the prescribed manner at any time before a design has been registered that by virtue of any assignment or agreement in writing made by the applicant or one of the applicants for registration of the design or by operation of law, the claimant would, if the design were then registered, be entitled thereto or to the interest of the applicant therein,or to an undivided share of the design or of that interest, the Controller may, subject to the provisions of this section, direct that the application shall proceed in the name of the claimant or in the names of the claimants and the applicant or the other joint applicant or applicants, accordingly as the case may require.

(2) No such direction as aforesaid shall be given by virtue of any assignment or agreement made by one two or more joint applicants for registration of a design except with the consent of the other joint applicant or applicants.

(3) No such direction as aforesaid shall be given by virtue of any assignment or agreement for the assignment of the benefit of a design unless-

(a) the design is identified therein by reference to the number of the application for the registration; or

(b) there is produced to the Controller an acknowledgement by the person by whom the assignment or agreement was made that the assignment or agreement relates to the design in respect of which that application is made; or

(c) the rights of the claimant in respect of the design have been finally established by the decision of a court; or

 (d) the Controller gives directions for enabling the application to proceed or for regulating the manner in which it should be proceeded with under sub-section (5).

 (4) Where one of two or more joint applicants for registration of a design dies at any time before the design has been registered, the Controller may, upon a request in that behalf made by the survivor or survivors, and with the consent of the legal representative of the deceased, direct that the application shall proceed in the name of the survivor or survivors alone.

 (5) If any dispute arises between joint applicants for registration of a design whether or in what manner the application should be proceeded with, the Controller may, upon application made to him in the prescribed manner by any of the parties, and after giving to all parties concerned an opportunity to be heard, give such directions as he thinks fit for enabling the application to proceed in the name of one or more of the parties alone or for regulating the manner in which it should be proceeded with, or for both those purposes, as the case may require.

 Section 9. Certificate of registration
(1) The Controller shall grant a certificate of registration to the proprietor of the design when registered.
 (2) The Controller may, in case of loss of the original certificate, or in any other case in which he deems it expedient, furnish one or more copies of the certificate.

5.5 Cancellation of Design- S.19
Section 19. Cancellation of registration

(1) Any person interested may present a petition for the cancellation of the registration of a design at any time after the registration of the design, to the Controller on any of the following grounds, namely:-

(a) that the design has been previously registered in India; or

(b) that it has been published in India or in any other country prior to the date of registration; or

(c) that the design is not a new or original design; or

 (d) that the design is not registrable under this Act; or

(e) it is not a design as defined under clause (d) of section 2.

(2) An appeal shall lie from any order of the Controller under this section to the High Court, and the Controller may at any time refer any such petition to the High Court, and the High Court shall decide any petition so referred.

1.6 Piracy or Infringement of copyright in Designs – S.22

Section 22. Piracy of registered design

(I) During the existence of copyright in any design it shall not be lawful for any person-

 (a) for the purpose of sale to apply or cause to be applied to any article in any class of articles in which the design is registered, the design or any fraudulent or obvious imitation thereof, except with the license or written consent of the registered proprietor, or to do anything with a view to enable the design to be so applied; or

(b) to import for the purposes of sale, without the consent of the registered proprietor, any article belonging to the class in which the design has been registered, and having applied to it the design or any fraudulent or obvious
imitation thereof, or

(c) knowing that the design or any fraudulent or obvious imitation thereof has been applied to any article in any class of articles in which the design is registered without the consent of the registered proprietor, to publish or expose or cause to be published or exposed for sale that article.

2. (1) If any person acts in contravention of this section, he shall be liable for every contravention-

(a) to pay to the registered proprietor of the design a sum not exceeding twenty-five thousand rupees recoverable as a contract debt, or

(b) if the proprietor elects to bring a suit for the recovery of damages for any such contravention, and for an injunction against the repetition thereof, to pay such damages as may be awarded and to be restrained by injunction accordingly:

Provided that the total sum recoverable in respect of any one design under clause (a) shall not exceed fifty thousand rupees:

Provided further that no suit or any other proceeding for relief under this subsection shall be instituted in any court below the court of District Judge.

(3) In any suit or any other proceeding for relief under subsection (2), ever ground on which the registration of a design may be cancelled under section 19 shall be available as a ground of defence.

 (4) Notwithstanding anything contained in the second proviso to sub-Section (2), where any ground or which the registration of a design may be cancelled under section 19 has been availed of as a ground of defence and sub-section (3) in any suit or other proceeding for relief under sub-section (2), the suit or such other proceedings shall be transferred by the Court in which the suit or such other proceeding is pending, to the High Court for decision.

 (5) When the court makes a decree in a suit under sub-section (2), it shall send a copy of the decree to the Controller, who shall cause an entry thereof to be made in the register of designs.

1.7 Overlap of Design, Copyright and Trade Marks

25. Bharat Glass Tube Limited v. Gopal Glass Works Limited, 2008 (37) PTC 1 (SC)

In this case, the respondent was engaged in figured and wired glass manufacturing business since 1981. Based on the orders placed by the respondent, the German Company supplied the rollers. The roller was used for the purpose of making design in various other articles like leather, rexin and plastic. However it was never used for glass. He purchased the rollers from the German company and also got registration on 5.11.2002.

In the meanwhile, the appellant and its associate IAG Company Ltd started imitating the said registered design. As a result, the respondent was constrained to file a suit against the appellant in the District Court and got a restraint order against this appellant.
The appellant filed an application before the Controller of Patents & Designs for the cancellation of the registration of respondent’s Design mainly on the ground that the design has already been previously published in India and abroad and on the ground that the design was not new or original. The appellant mainly relied on two documents. They are as follows
(1) a catalogue of the German Company and letter dated 10.9.2003 of the German company addressed to M/s. IAG Co. Ltd. the holding company of the appellant stating that the said German Company had developed design in the year 1992, and
(2) a document downloaded from the official website of the Patent Office of the United Kingdom on 22.9.2004 which indicated that the same design had been registered in United Kingdom in the name of M/s.Vegla Vereinigte in 1992

Against these allegations, the respondent filed an affidavit stating that the German Company was not engaged in manufacture of the goods other than engraving rollers. Further it was claimed that the company never manufactured engraved glass sheets by using engraved rollers. The respondent also relied on the communication dated 4.3.2004 of the German company confirming that the embossing rollers covered by Design No. 2950-910 had been sold to the respondent on condition that all user rights available in India under Indian laws would vest exclusively with the respondent and that the respondent would be entitled to exclusive user rights for at least five years. The German company was aware of the registration of the Design No. 190331 and it had no objection to the design being marketed by the respondent herein. The respondent questioned the admissibility of the materials alleged to have been downloaded from the website of the UK Patent Office. It was also contended that in absence of corroborative evidence, such evidence cannot be accepted and it cannot be treated as admissible evidence. After hearing both side arguments, the Assistant Controller of the Patents and Designs set aside the registration of the respondent. Aggrieved against this order, the respondent filed an appeal before the Calcutta High Court. The High Court reversed the finding of the Assistant Controller. Aggrieved against this impugned order of the Calcutta High Court, the present appeal was filed by the appellant-complaint before the Supreme Court.

Decision of the Supreme Court:
After considering the materials, Supreme Court upheld the Calcutta High Court’s decision for the following reasons;
1. There is no evidence whatsoever produced by the complainant either before the Assistant Controller or before any other forum to show that the design which has been reproduced on the glass sheet was manufactured anywhere in the market in India or in United Kingdom.
2. This proprietorship of this design was acquired by this respondent from the German company. Therefore, he has the right to register the same in India.
3. No evidence was produced by the complainant before the Assistant Controller that anywhere in any part of the world or in India this design was reproduced on glass or it was registered anywhere in India or in any part of the world. Therefore, this design is new for glass and the same is new and original one.
4. Finally Supreme Court also declined to consider the documents which have been downloaded from the UK Patent Office website.


26. Reckitt Benckiser(India) Ltd v. Wyeth Limited, 2010 (44) PTC 589 (Del (DB))

The division bench referred the matter to be examined by a larger bench in view of disagreement with the stand taken by it in the matter of Dabur India Ltd. v. Amit Jain [end note 12]. In Dabur case, the court concurred with the Calcutta High Court decision in Gopal Glass Works Ltd. v. Assistant Controller of Patents & Designs [2006 (33) PTC 434 (Cal)] and concluded that prior registration of similar article in the U.S. cannot be considered as “published in any other country”. On the contrary, the division bench of the Delhi High Court in Reckitt Benckiser (supra) preferred to differ. In Reckitt the court distinguished previously registered designs outside India as, for example in the UK, designs that are kept secret post registration and those that are not kept secret post registration, and considered those that are not kept secret post registration as designs “published in any other country” within the meaning of Section 19 (1) (b) of the Act. To come to this conclusion, the court relied on a combined reading of other sub-sections of Section 19 and Section 4. In particular, it relied on the provisions of Section 44 (1) and (2) that deal with claiming priority from an application filed in a convention country if the design application in India is filed within six months from the priority date, and Section 4 (b) which is broader in scope, available in public domain as compared to Section 19 (1) (b), mere publication.          

The court also answered the question whether there is any legislative intention for not including previously registered designs outside India as a ground for cancellation of registration in Section 19 (1) (a) of the Act. It held that the legislature could never have intended that a design in India, which is a complete copy of the design registered abroad, cannot be cancelled although the design is registered abroad and available in public domain post its registration.



27. Samsonite Corporation v. Vijay Sales, 1998 (18) PTC 372 (Del)

Issues were firstly whether the Designs Act was applicable or not and secondly whether there was infringement. The first issue was decided in the affirmative. Regarding the second issue, the court held that in case of the first model (2450 Ciera), the differences in the Citation were obvious and hence there was no infringement. However, in the case of the second model, TRX, the court ruled that the differences were minor and would only be noticeable to an expert but not to the average customer and hence there was infringement. Thus here too, the ‘ordinary observer’ test has been applied although the terminology of the Court is ‘average customer.’