Trademarks are important as they protect the identity of any firm as something unique, separate from the services or goods on offer by potential competitors. These are the words of law surrounding trademark infringement within India. The Trade Marks Act, 1999 offers a comprehensive legal framework that encompasses the law on registration of trademarks as well as remedies available in case of violation of rights. This blog delves into some of the landmark case laws on trademark infringement in India briefly on the broader legal principles as well as the role of the trademark infringement section under the Act.
An infringement of a trademark is said to take place when an unauthorized party uses a mark that is either identical or deceptively similar to the registered trademark. Sections 28 to 30 of the Trade Marks Act, 1999 have provided the legal framework for the resolution of such issues. In cases of such issues, Section 29 is the most related section on trademark infringement indicating conditions for constituting infringement like identical marks, similar goods or services, or unfair advantage.
In order to bring the case in court, there must be a valid trademark registration that grants the owner an exclusive right in the mark as well as the right to prohibit others from using the mark without the permission of the owner.
This became the root cause for the cases of trademark infringement. The court held that resemblance alone is not an infringement per se of the trademark. It defined that the comparison of sound, appearance, and writing should be subjected to trial.
In this case, the Supreme Court introduced the "test of deception" to decide the question of trademark infringement. It held that the court must consider the impression that the trademarks as a whole create in the mind of an average consumer. The defendant's packaging and design were alleged by Parle Products to be so imitative of the plaintiff's "Parle-G" biscuits that confusion existed among consumers.
This case has resulted in the importance of phonetic similarity, wherein in a case, plaintiff's mark was held as "Amritdhara" and defendant's mark was very close to it in terms of phonetic pronunciation. This gave rise to the fact that the action was taken on the ground of similarity due to the probability of confusion which falls within the ambit of Section 29, Trade Marks Act, 1999.
Success in an infringement action would depend largely on the ability of the plaintiff to prove ownership in a trademark. A trademark registration confers not only exclusive rights but also prima facie evidence of ownership. In ITC Limited v. Nestle India Limited (2011), it was noted by the court that registered trademarks enjoy statutory protection under Section 28, enabling the owner to prevent unauthorized use.
Yahoo! Inc. had filed a case against Akash Arora, using the domain name "YahooIndia.com." In this case also, the judgment was in favour of the plaintiff because a domain name being an item of intellectual property was covered by the Trade Marks Act, and trademark registration of the plaintiff was essential proof of ownership; thus, the case went in favour of Yahoo!.
The trademark infringement section explicitly elaborates the circumstances under which there is an infringement. The circumstances include:
Public interest was the central focus by Supreme Court, and it stated the matter that there cannot be an inkling of possibilities of confusing in the pharmaceutical product. So in order to evaluate the likeness of trademarks for the pharmaceutical product it laid more rigid parameters along with consumer protection.
Registration under the trademark act confers statutory rights. However, the proof of infringement is not that easy. The courts hold various factors into consideration:
The court decision held for Daimler Benz that the "Benz" trademark by the defendant in undergarments diluted the luxury car brand reputation. It becomes a case of trademark infringement when the use in an unrelated industry inflicts damage to the goodwill of the luxury car brand.
Trademark infringement cases are considered by defendants to allege statutory defenses under Section 30 of the Trade Marks Act, 1999, which include the following:
In this case, Tata Sons could successfully plead infringement against a cybersquatter. The court rejected the argument of fair use put by the defendant on the ground that the use was not bona fide but for the purpose of reaping the goodwill of Tata.
With the emerging business models and technological innovations, the scope of trademark infringement is widening. New challenges are:
It threw out the online infringement cases of Shaadi.com by dismissing a plea of its rival using similar domain names to divert traffic.
This would, therefore, imply that trademark infringement under the Trade Marks Act was a powerful means for intellectual property rights. In simple words, it clearly delineated what amount of infringement should occur and avails legal remedies for the aggrieved parties. Still, robust registration of a trademark will always be at the center of the policy of enforcement, wherein businesses will possess the right defense over their rights.
Trademark infringement significantly threatens business organizations, but the landmark judgments strongly support the Indian legal structure so that it is well protected and safeguarded in favor of the owners of the trademark. This is an epitome of legal compliance and vigilance, showing how trademark registration aligns with enforcing the trademark infringement section under the Trade Marks Act, 1999.
Such knowledge of principles and case laws will empower businesses to penetrate the thick, dark web of trademark law and emerge alive to protect brand identity and thereby their market position.