Trademarks

Trademarks

Why in news :

• In a recent move, the Delhi High Court, in the case of Hamdard National Foundation (India) vs Sadar Laboratories Pvt. Ltd., restrained Sadar Laboratories from manufacturing and selling beverages under the trademark named ‘Dil Afza’.
• The court observed that the trademark ‘Rooh Afza’ is prima facie a strong mark requiring a high degree of protection as it has acquired immense goodwill.

What is meant by Trademark :

• A trademark is a distinctive sign or indicator used by a business organization to distinguish its products or services from those of other entities.

• It serves as a badge of origin exclusively identifying a particular business as a source of goods or services.
• Trademark is a logo or combination of numbers and characters that is exclusively used by a business to distinguish its services and products from others in the market.
• Having a registered trademark can help a business invest in branding and ensure that its goods and services have a unique branding in the market.
• In India, trademark filing and registration is governed by The Trade Marks (Amendment) Ac which provides for registration and better protection of trade marks for goods and services and for the prevention of the use of fraudulent marks.

What is meant by strong trademark :

• A mark is said to be strong when it is well ­known and has acquired a high degree of goodwill.
• The degree of the protection of any trademark changes with the strength of the mark; the stronger the mark, the higher the requirement to protect it.

Trademark Registration Certificate :

• In case there is no opposition or if all oppositions have been cleared, the trademark would be registered.
• The trademark registration would now be valid for a period of 10 years from the date of application and can be renewed at the end of 10 years.

What is meant by Trademark infringement?

• Trademark infringement is the unauthorised usage of a sign that is identical or deceptively similar to a registered trademark.
• Using a registered trademark without the authorisation of the trademark owner is an offence under the Trade Marks Act and is known as trademark infringement.
• In case of infringement, a registered trademark owner can issue a notice to the infringer to cease and desist use of the mark.
• In case the infringer does not stop using of the mark, action can be initiated to cease all goods that violate the Trade Marks Act and a claim for damages can be initiated.

What was the bone of Contention :

• The manufacturers of ‘Rooh Afza’ moved an appeal against the rejection of its application seeking an interim injunction against Sadar Laboratories Pvt. Ltd. for their product ‘Dil Afza’.
• The appellant stated that the trademark ‘Rooh Afza’ is a highly reputed mark in the market with regard to sharbat (sweet beverage).
• Furthermore, they also claimed that the design of the product ‘Dil Afza’ is deceptively similar to the get­up and trade dress of the appellant’s product.

More observations by the High Court :

• Similar sound: The court held that impugned trademark ‘Dil Afza’ has a phonetic similarity with ‘Rooh Afza’.
• Same literal meaning: The English meaning of the words ‘ROOH’ and ‘DIL’, which means heart and soul is a commonly used phrase, provides a common conceptual background”.
• Thirdly, the trade dress of the impugned trade mark, which consists of the bottle’s shape, design, the placement of the house mark, colourfully busy design of the label, are the material contributors to the commercial impression of the competing trademark.
• Lastly, the value of the product was taken into consideration as well. The low priced consumable item doesn’t get enough thinking rationale of the average busy consumer.

The verdict of the court :

• A Division Bench of the Delhi High Court restrained the respondent (Sadar Laboratories Pvt. Ltd.) from manufacturing and selling any product under the trademark ‘Dil Afza’ till the final disposal of the trademark infringement suit.
• The judgement also noted that the “Rooh Afza requires more protection as it is more likely to be subjected to piracy by those who seek to draw an undue advantage of its goodwill”
• The court also passed a reference to the previous case with similar background and recalled its judgement.
• In the case of M/s Kirorimal Kashiram Marketing & Agencies Pvt. Ltd. vs M/s Shree Sita Chawal Udyog Mil, the Delhi High Court observed that “it is not permissible to copy a prominent part of the registered trademark of another person” and restrained the respondent from using the trademark ‘Golden Deer’ as it was deceptively similar to the plaintiff’s registered trademark ‘Double Deer’ with regards to rice.

Benefits of the Trademark :

• Helps the consumers by giving the genuine product.
• Helps the manufacturers to claim the authenticity.
• Prevents the piracy in the market.
• The brand value gets established.
• The trust system in the society gets strengthened.

Syllabus : GS3 – Issues related to Indian Economy; GS2 – various Supreme Court judgements