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citation codes
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Acts
  • Order 39 Rules 1 & 2 read with Section 151 of the Code of Civil Procedure
  • Merchandise Marks Act, 1958
  • Merchandise Marks Act, 1959.
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Cites
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Citation Codes
Equivalent Citations
citation codes
Case Number
Attorney(S)
Judges
Acts
  • Order 39 Rules 1 & 2 read with Section 151 of the Code of Civil Procedure
  • Merchandise Marks Act, 1958
  • Merchandise Marks Act, 1959.
Smart Summary

Factual and Procedural Background

The plaintiff, M/s Amrit Soap Company, brought a suit for infringement of trade marks, copyright, passing off and for rendition of accounts of profits. The present application is an interim injunction application under Order 39 Rules 1 & 2 read with Section 151 of the Code of Civil Procedure, seeking to restrain the defendant during the pendency of the suit from manufacturing, selling, offering for sale or otherwise dealing in washing soap under the impugned trade mark “BILLY” and an artistic wrapper which the plaintiff alleges is that of the plaintiff, and from passing off the defendant's goods as those of the plaintiff.

The plaintiff alleges continuous use of the trade mark “BILLY” since 10 April 1978 and use of a distinctive artistic wrapper for packing. The plaintiff applied to the Registrar of Trade Marks for registration of “BILLY” by an application dated 10 June 1986; that application was accepted for advertisement in the Trade Marks Journal and the plaintiff stated the mark is bound to be registered under the Trade and Merchandise Marks Act (the text refers to both 1958 and 1959 in different places). Photostat copies of bills of sale from 19.10.1978 to 25.5.1987 were placed on record by the plaintiff.

The plaintiff came to notice in mid-October 1988 that the defendant had started marketing washing soap under the same trade mark “BILLY” and in wrappers that the plaintiff alleged were deceptively similar. The defendant opposed the injunction application by filing a reply (no written statement on record) and raised objections including denial of similarity, a claim of prior user by the defendant since November 1987, allegations that many other parties use “BILLY”, and a challenge to the court's jurisdiction.

Legal Issues Presented

  1. Whether this Court has territorial jurisdiction to try the suit (given assertions that both parties sell within Delhi).
  2. Whether the plaintiff has established a prima facie case of infringement of copyright and passing off based on alleged deceptive similarity of the wrappers and trade mark “BILLY”.
  3. Whether the balance of convenience and the prospect of irreparable injury favor grant of interim injunction.
  4. Whether prior user of the mark and wrapper by the plaintiff (if established) gives the plaintiff a right to interim relief against the defendant despite other third parties also using the trade mark.

Arguments of the Parties

Plaintiff's Arguments

  • The plaintiff has used the trade mark “BILLY” since 10 April 1978 and an associated artistic wrapper continuously since that time.
  • The plaintiff has applied for registration of the mark (application dated 10 June 1986) and the Registrar accepted it for advertisement, the mark being bound to be registered under the Trade and Merchandise Marks Act (text refers to 1958/1959).
  • Photostat bills of sale from 19.10.1978 to 25.5.1987 demonstrate continuous sale of “BILLY” soap in the plaintiff's wrapper.
  • The defendant's wrapper and mark are, on visual comparison, deceptively similar in colour, scheme, get-up, layout, style and arrangement of words, thereby causing a prima facie case of copyright infringement and passing off; this similarity is likely to cause confusion among the buying public (specifically referred to: ladies and domestic servants).
  • If interim relief is not granted, the defendant will continue marketing with the offending mark and wrapper, causing irreparable loss to the plaintiff.

Defendant's Arguments

  • The defendant contends that the wrappers relied on by the plaintiff (annexure A and B) have been used by the plaintiff only for the last two years and are different from the defendant's wrappers.
  • The defendant claims to have used its wrapper and the trade mark “BILLY” in the identical carton since November 1987.
  • Many other parties allegedly use the trade mark “BILLY” and similar wrappers in the soap trade (the reply lists several such parties by name and locality).
  • The defendant raised an objection as to the jurisdiction of the Court to try the suit.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The court proceeded in stages. First, on the preliminary objection of jurisdiction the court noted the plaint's averments (paragraphs 19 and 20 of the plaint) that both parties sell within Delhi and that the plaintiff had made an application to the Registrar of Trade Marks, Delhi with acceptance for advertisement. The plaintiff produced a bill dated 6 November 1988 showing a sale in Delhi. On this basis the court held that, although the material may be thin at this interlocutory stage, the specific averment of sale within the territorial jurisdiction of Delhi was sufficient to confer jurisdiction to try the suit.

The court then applied the settled three-factor test for interim injunctions: (1) existence of a prima facie case, (2) balance of convenience, and (3) risk of irreparable injury if relief is denied. To examine prima facie case, the court visually compared the wrappers on record and assessed similarity in colour, scheme, get-up, layout, style and arrangement of words. The court concluded that there was “strikingly deceptively similar” overall effect between the competitor wrappers, sufficient to prima facie constitute infringement of the plaintiff's copyright in the wrapper and also to raise a prima facie case of passing off because of likelihood of confusion in the trade.

The court considered documentary evidence filed by the plaintiff (statement and photostat bills from 1978–1987) and observed that these documents clearly demonstrated the plaintiff's use of the “BILLY” mark with the distinctive artistic wrapper from 1978 continuously to the present. The defendant had admitted use only since November 1987 (about 10 years after the plaintiff's first use). The court relied on the principle (as stated in the opinion) that in an interlocutory contest the party who can establish prior user in point of time has the superior right; hence the plaintiff's earlier user conferred on it a prima facie right vis-à-vis the defendant.

The court rejected the defendant's contention that widespread use of the trade mark “BILLY” by others would defeat the plaintiff's claim in the between-parties dispute, holding that the court must determine the rights between the parties before it and that the plaintiff's prior user gave it the better legal right against the defendant.

Considering balance of convenience and irreparable injury, the court found both to favour the plaintiff: the plaintiff's earlier and continuous use, the deceptive similarity and the risk that without interim relief the defendant would continue to market using the offending mark and wrapper, causing irreparable harm to the plaintiff's goodwill.

Holding and Implications

Holding: The application for interim injunction (IA 8560/88) was allowed and an injunction was granted.

The court's order (summary of operative directions):

  • The defendant is restrained, during the pendency of the suit, from manufacturing, selling, offering for sale or otherwise dealing in washing soap under the impugned trade mark “BILLY” and the plaintiff's artistic wrapper.
  • The defendant is also restrained from using any other trade mark and artistic wrapper which may be similar and/or deceptively identical to the trade mark “BILLY” and the plaintiff's artistic wrapper.
  • The defendant is restrained from passing off its washing soap products as the plaintiff's goods under the trade mark “BILLY” and artistic wrappers similar and deceptively identical to those of the plaintiff.
  • IA 8560/88 stands disposed of. No costs were awarded.

Implications:

  • Direct effect on the parties: the defendant is subject to an interim restraint during the suit's pendency as described above; the plaintiff obtains protection of its asserted prior user rights for the interim period.
  • The opinion does not set out any novel, broader legal precedent beyond applying the established injunction test and recognising prior user rights; no new general principle is announced in the judgment.

    Amrit Soap Company v. New Punjab Soap Factory

    P.N Nag, J.:—M/s Amrit Soap Company, the plaintiff, in a suit based on infringement of trade marks, copyright, passing off and for rendition of accounts of profits has filed this application seeking to restrain the defendant during the pendency of suit from manufacturing, selling, offering for sale or otherwise dealing in the washing soap under the impugned trade mark “BILLY” and artistic wrapper of the plaintiff and also from passing off its products of washing soap as and for the quality goods of the plaintiff under the trade mark “BILLY” and artistic wrappers.

    2. The relevant facts necessary for determining the point of controversy has been set out by the plaintiff in the suit, inter alia, that the plaintiff firm is engaged in the well-established business of manufacturing and marketing of washing soaps since the year 1952. Since April 10, 1978 the plaintiff firm has been using the trade mark ‘BILLY” for its products of washing soaps for the purpose of indicating a connection in the course of the trade between the said product and the plaintiff firm. The plaintiff firm has applied to the Registrar of Trade Marks for registration of the trade mark “BILLY” in respect of their goods vide application dated 10th June, 1986 and the said application has been accepted by the Registrar of Trade Marks for advertisement in the Trade Marks Journal and the said mark of the plaintiff is bound to be registered under the Trade and Merchandise Marks Act, 1958 in due course. The plaintiff not only since 1978 has been using trade mark “BILLY” for its products of washing soaps but also has been using for the sale and marketing of products, artistic wrappers for packing purposes. The salient features of the artirtic wrappers have been referred to by the plaintiff in paragraph 5 of the plaint.

    3. The plaintiff firm is a lawful proprietor of the impugned trade mark “BILLY” and also of the artistic wrapper and has got an exclusive right to the use thereof. The use of artistic wrapper for more than a decade in the market has earned the firm enviable goodwill in public and trade.

    4. In the middle of October, 1988, however, it came to the notice of the plaintiff when the wrapper of the defendant came to the hand of the plaintiff that the defendant has also started marketing its products of washing soaps in quite similar wrappers and under the same trade mark “BILLY” as those of the plaintiff. The adoption and use of the said trade mark and impugned wrapper by the defendant for its products of washing soaps is an act of infringement of copyright of the plaintiff in the wrapper and the defendant is also guilty of passing its inferior quality goods as quality goods of the plaintiff under the said trade mark and artistic wrapper of the plaintiff of which the defendant is not entitled at all. By the use of the wrapper of the plaintiff, the defendant has since been passing off its inferior and substandard goods as and for the quality goods of the plaintiff.

    5. In the present application filed by the plaintiff firm under order 39 rules 1 & 2 read with section 151 of the code of civil procedure the plaintiff has set out the same facts as in the suit.

    6. The defendant firm has not filed the written statement in the suit. However, the defendant has filed the reply and thereby opposed the injunction application. The objections taken by the defendant are that the wrapper marked annexure A has been used by the plaintiff for the last two years and in the year 1988 another washing soap wrapper marked annexure B has been adopted by them and these wrappers are different from the wrappers of the defendant which are being used by the defendant firm continuously and extensively since November, 1987, which has been denied by the plaintiff in the rejoinder.

    7. The other ground taken is that the use of trade mark “BILLY” and that of such wrapper are common in the trade of soaps and not only the defendant but so many other parties are using the trade mark “BILLY” along with the wrapper which is similar to that of the plaintiff and some of the parties referred to are: (i) Jyoti Gramodyog Samiti, Sunam, Distt. Sangrur, Punjab; (ii) Laxmi Soap Factory. Sunam, Distt. Sangrur, Punjab; (iii) Modi Gramodyog Samiti, Punjab; (iv) Jain Soap Factory, Punjab; (v) M/s Shiv Shakti Soap Factory, Punjab; (vi) M/s Anand Gramodyog Samiti, Amargarh, Distt. Sangrur, Punjab; and (vii) M/s Rakesh Soap Factory, Punjab. The question of jurisdiction of this court to try the suit has also been raised.

    8. At the threshhold I propose to deal with the question of jurisdiction of this court a preliminary objection. In this connection reference is made to the averments in paragraphs 19 and 20 of the plaint wherein it is stated that both the parties are selling and offering for sale their products of washing soaps in Delhi also. In addition to this, the plaintiff has made an application before the Registrar of Trade Marks, Delhi for registration of its trade mark “BILLY” and such an application has been accepted by the Registrar of Trade Marks by advertisement in the Trade Marks Journal and the said mark is bound to be registered under the Trade and Merchandise Marks Act, 1959. Bill dated 6th November, 1988 has been filed with the list of documents by the plaintiff which shows that “BILLY” brand soap was sold to one Ashok Kumar in Delhi. In view of these facts that both the plaintiff and the defendant have been selling the goods within the territorial jurisdiction of Delhi, this Court has jurisdiction to try this suit. It is no doubt true that no sufficient material is available at this stage to substantiate that the goods are being sold by the plaintiff in Delhi but this matter would be gone into at the time of the trial of the suit. At this stage, it is sufficient that the specific averment in the plaint, whatever it may be worth, has been made that the plaintiff and defendant ate selling the goods within the territorial jurisdiction of Delhi. Therefore, in my opinion this court has territorial jurisdiction to try this suit.

    9. In order to succeed in the injunction application, three factors must be kept in view, that is, the establishment of prima facie case, the balance of convenience between the parties and in case injunction is not granted this will cause irreparable injury to the petitioner. In order to show prima facie case, the plaintiff's counsel has referred to the wrappers of the plaintiff and the defendant placed on the record and strenuously urged that having regard to the colour, scheme, get up, lay out, style and arrangement of words the wrappers used by the plaintiff and defendant are strikingly deceptively similar and thereby the defendant is guilty of passing its inferior quality of goods to the buyers as of the plaintiff. There is good deal of force in this argument. Having regard to the deceptive similarity between the get up, scheme, colour, ink etc. of two competing wrappers gives the wrapper of defendant of overall effect of eleceptive similarity which prima facie constitute infringement of copyright of the plaintiff. The comparative description of the wrapper set out in the plaint which is amply reflected on a visual examination of the competing wrappers leaves absolutely no manner of doubt that the wrapper of defendant is deceptively similar to the wrapper extensively used by the plaintiff since 1978. The deceptive similarity is likely to cause confusion in the course of trade, particularly having regard to the class of people, ladies and domestic servants which constitute the buying public, in relation to washing soap. Therefore, the plaintion prima facie is entitled to protection at this stage.

    10. The next question that arises for consideration at this stage is whether between the parties who has established the user of the trade mark and copyright at point of time irrespective of the ownership of such mark and copyright. In this connection there is a statement filed by the plaintiff from 1978-1987. The plaintiff has also filed photostat copies of the bills of sale of the soap of trade mark “BILLY” in the wrappers used by it from 19.10.1978 to 25.5.4987 A perusal of these documents clearly demonstrates that the plaintiff is selling the soap of trade mark ‘BILLY” with the distinctive artistic warpper of “'BILLY” from the year 1978 uptil now and continuing to sell the same under its trade mark and artistic wrapper. On the other hand, the defendant has admittedly claimed used of the trade mark “BILLY” with the device of “BILLY” in the indentical carton from November, 1987 which is about 10 years later. This has been admitted by the defendant in paragraph 2 of the preliminary objections of the reply. The law is pretty well settled that in order to succeed at this stage the plaintiff has to establish user of the aforesaid mark prior in point of time than the impugned user by the defendant. The plaintiff, therefore, is to succeed as he is prior user of the trade mark vis-a-vis the defendant.

    11. It was next submitted by counsel for the defendant that the plaintiff has no right to use the trade make ‘BILLY” and artistic wrapper as so many other parties who are referred to earlier were also using the same trade mark. This contention of the defendant is wholly devoid of any force. In this connection it is sufficient to say that under the law it is the right of two parties before the court which has to be determined and, as already discussed, the plaintiff being prior user has the better and legal right to seek relief from this court.

    12. In the light of what is discussed above, the prima facie case in favour of the plaintiff stands established. The use of the trade mark and artistic wrapper by the plaintiff much earlier to that of the defendant not only shows a prima facie case in plaintiff's favour but balance of convenience also lies in its favour. Furthermore, if the defendant firm is not restrained by means of interim injunction, it will continue to market its goods with the offending mark and wrapper with the result that the plaintiff will suffer irreparable loss and injury.

    13. I would, therefore, grant an injunction restraining the defendant, during the pendency of the suit, from manufacturing, selling, offering for sale or otherwise dealing in the washing soap under the impugned trade mark “BILLY” and artistic wrapper of the plaintiff or under any other trade mark and artistic wrapper which may be similar and/or deceptively indentical to the trademark “BILLY” and artistic wrapper of the plaintiff and also from passing off its products of washing soap as and for the quality goods of the plaintiff under the trade mark “BILLY” and artistic wrappers which are quite similar and deceptively identical to the trade mark and artistic wrappers of the plaintiff.

    14. With these directions, IA 8560/88 stands disposed of. No costs.

    I A stands disposed of accordingly.
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    Comments

    Amrit Soap Company v. New Punjab Soap Factory
    (Jul 25, 1989)