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Smart Summary

Factual and Procedural Background

The plaintiffs, registered owners of the trade mark “22” used for manufacturing and marketing bidis, filed a suit alleging infringement and passing off of their trade mark “22” and copyright infringement of their label. The plaintiffs have been manufacturing and marketing bidis under the trade mark “22” for over five decades, with duly registered and renewed trade mark and copyright protections. They claimed substantial sales and significant publicity investment. The defendants were alleged to have recently started manufacturing and selling bidis under the trade mark “122” with a label slavishly copied from the plaintiffs’ label. The plaintiffs sought an ad-interim injunction, which was granted ex-parte by this court on 17.12.1991, restraining the defendants from using the trade mark “122.” The defendants denied the allegations, claiming prior use of the trade mark “122” since 1978 and argued that numerals cannot be monopolized as trade marks. The court examined evidence and found that the defendants failed to substantiate their claim of prior use, holding the plaintiffs as prior users and registered owners of the trade mark “22.”

Legal Issues Presented

  1. Whether the defendants’ use of the trade mark “122” constitutes infringement and passing off of the plaintiffs’ registered trade mark “22.”
  2. Whether the defendants’ label infringes the plaintiffs’ copyright in respect of their label.
  3. Whether the plaintiffs are entitled to an injunction restraining the defendants from using the trade mark “122” or any deceptively similar mark.
  4. Whether numerals can be valid trade marks and subject to protection under trade mark law.

Arguments of the Parties

Plaintiffs' Arguments

  • The plaintiffs have been manufacturing and marketing bidis under the trade mark “22” for over fifty years, with duly registered and renewed trade mark and copyright protections.
  • They have incurred substantial sales and publicity expenses, establishing goodwill in the trade mark and label.
  • The defendants recently started using the trade mark “122” and copied the plaintiffs’ label, causing deception and passing off.
  • The plaintiffs’ customers are largely illiterate or semi-literate, increasing the likelihood of confusion between “22” and “122.”
  • They sought and obtained an ex-parte ad-interim injunction restraining the defendants from using “122.”

Defendants' Arguments

  • The defendants denied the allegations of infringement and passing off.
  • They claimed to have been using the trade mark “122” since 1978, prior to the plaintiffs’ suit.
  • They argued that numerals cannot be monopolized as trade marks, citing the existence of other bidis bearing various numerals such as 122, 212, 21, 120, 822, etc.
  • They denied that their label was deceptively similar to the plaintiffs’ label.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Amritdhara Pharmacy v. Satya Deo Gupta, AIR 1963 SC 449 Principles on deceptive resemblance of trade marks:
  • Likelihood of deception or confusion in legitimate market use.
  • Consideration of all circumstances.
  • Focus on the perception of the relevant consumer group.
The court applied these principles to hold that the resemblance between “22” and “122” is likely to cause confusion among the relevant consumers, especially illiterate or semi-literate bidi buyers.
Century Traders v. Roshan Lal Duggar & Co, AIR 1978 Delhi 250 Holding that proof of actual damage or fraud is unnecessary in passing off actions; likelihood of infringement suffices to grant injunction. The court relied on this precedent to justify granting injunction against defendants without requiring proof of actual damage, based on likelihood of trade mark infringement and passing off.

Court's Reasoning and Analysis

The court examined the factual matrix and evidentiary material, noting that the plaintiffs had established prior and continuous use of the trade mark “22” with registered rights and substantial goodwill. The defendants failed to provide evidence supporting their claim of prior use of “122.” The court recognized the socio-economic context of bidi consumers, many of whom are illiterate or semi-literate, increasing the risk of confusion between the marks “22” and “122.” Applying the principles from Amritdhara Pharmacy, the court found that the resemblance was likely to deceive or confuse consumers. The court also relied on Century Traders to hold that proof of actual damage or fraud was unnecessary to grant relief. Regarding copyright infringement claims, the court found no prima facie breach based on the label design, focusing the injunction on the trade mark “122” alone. Consequently, the court allowed the plaintiffs’ application for injunction and confirmed the interim order restraining defendants from using “122” or any deceptively similar mark.

Holding and Implications

The court held that the defendants are restrained from using the trade mark “122” or any other trade mark consisting of numericals deceptively similar to the plaintiffs’ registered trade mark “22.” The interim injunction granted earlier was confirmed.

The decision directly protects the plaintiffs’ proprietary rights in the trade mark “22” and prevents the defendants from misleading consumers through the use of “122.” No new precedent was established beyond the application of existing principles on trade mark infringement, passing off, and the protectability of numerals as trade marks. The ruling reinforces the principle that likelihood of confusion suffices for injunctive relief without the need to prove actual damage.

    Vrajlal Manilal v. Adarsh Bidi Co.

    R.C Lahoti, J.:— The plaintiffs who are registered owners of the trade mark ‘22’ for manufacturing and marketing bidis have filed this suit complaining of infringement and passing off of their trade mark ‘22’, also complaining of infringement of their copyright in respect of their label.

    2. According to the plaintiffs they have been carrying on manufac-turing and marketing of bidis for more than 5 decades. Their trade mark is “22”. The trade mark labels comprising of numerals ‘22’ have been duly registered and renewed from time to time. They have been valid on the date of the suit. The label consisting of “22” is an artistic work duly registered under the Copyrights Act. The plaintiffs are having substantial sales and have incurred huge amounts in publicity of their trade mark and label. The plaintiffs have branch officers in Delhi, Agra and Lucknow and Head Office in Sagar. The plaintiff's are one of the oldest and leading manufacturers of Bidis of superior quality. Shortly before the institution of the suit, the plaintiffs have noticed the defendants manufacturing and selling their bidis under the Trade Mark 122, also having slavishly copied the plaintiffs label. The plaintiffs have also sought for an ad-interim injunction. Vide order dated 17.12.1991 This court has granted an ex-parte ad-interim injunction restraining the defendants from selling bidis under the trade mark “122.”

    3. The defendants have denied all the material plaint averments. According to them they have been manufacturing bidis since 1978 using 122 in their trade mark. It is denied that the defendants label is deceptively similar with that of the plaintiffs. It is also submitted that numerals cannot be the monopoly of the plaintiffs as there are several bidis in the market bearing numerals of 122, 212, 21, 120, 822 and similar others.

    4. At the very outset, it may be stated that while the plaintiffs have set-out in details the figures of their sales and the amounts incurred on publicity over a number of years in respect of their bidis sold under the trade mark “22”, the defendants have failed to furnish any details much less any documents to show their having been in the market with the trade mark 122 since 1978. The defendants have utterly failed in substantiating even prima facie that the allegation of the plaintiffs of the defendants having entered in the market under the trade mark 122 only a little before the institution of the suit was false. It has, therefore, to be held that the plaintiffs are prior users and registered owners of the trade mark 22. The defendants have recently entered the market with the trade mark 122.

    5. Lebels and the bundles containing the bidis which are round and conical in shape have been produced in the court for the perusal. It has been contended by the learned counsel for the plaintiffs that bidi is a commodity of consumption in the lower strata of the Indian society and they are mostly illetrates or semi-literates who consume the bidis. It is further submitted by the learned counsel that the phonetic semi-labels between the figures 22 and 122 is likely to result in deception of the unwary customers and passing off of the defendants goods as of the plaintiffs. There is substance in the submission.

    6. Not much of case law is available on the use of numericals as a trade mark, yet aothorities are available for the proposition that numericals can be used as trade mark and rights acquired by such use.

    7. In Amritdhara Pharmacy v. Satya Deo Gupta . AIR 1963 SC 449, their Lordships have id down the following principles:

    “A trade mark is likely to deceive or cause confusion by its resem-blance to another already on the Register if it is likely to do so in the course of its legitimate use in a market where the two marks are assumed to be in use by traders in that market. In considering the matter, all the circumstances of the case must be considered. What degree of cause confusion must in the nature of things be incapable of definition a prior. For deceptive resemblance two important questions are: (1) who are the persons whom the resemblance must be likely to deceive or confuse, and (2) what rules of comparison are to be adopted in judging whether such resemblance exists. As to confusion, it is perhaps an appropriate description of the state of mind of a customer who, on seeing a mark things that it differs from the mark on goods which he has previously bought, but is doubtful whether that impression is not due to imperfect recollection.”

    8. In Century Traders… v. Roshan Lal Duggar & Co… . AIR 1978 Delhi 250, a Division Bench of this court has held:

    “The proof of actual damage or fraud is unnecessary in a passing off action whether the relief asked for is injunction alone or injunction, accounts and damages, If there is a likelihood of the offending trade mark invading the proprietary right, a case for injunction is made out.”

    9. It is common knowlege that bidis are consumed by illetrates or., semi-literates. The numericals 22 and 122, as used by the parties on their labels are in English writing-style. As the lables and the wrappiog paper are used on the bundles which are conical and round in shape the possibility of the unwary consumers being led away in purchasing defendants bidis as that of the plaintiffs cannot be ruled out. This is sufficient to give a cause of action to the plaintiffs. In so far as the labels and the wrappers are concerned, having perused the colour scheme, design and set-up of the two. I am not satisfied that the defendants have committed a breach of plaintiffs copyright prima facie. It would surface if they are restrained simply from using the trade mark “122”.

    10. For the foregoing reasons, IA No. 1962/92 is allowed and IA No. 8016/92 is rejected. The interim order dated 17.12.1991 is confirmed. The defendants are restrained from using the trade mark “122” and any other trade mark consisting of such numricals as may be diceptively similar with that of the plaintiffs “22”.

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    Comments

    Vrajlal Manilal v. Adarsh Bidi Co.
    (Jan 20, 1995)