Full Judgment Text
* IN THE HIGH COURT OF DELHI AT NEW DELHI
th
% Decided on: 18 December, 2019
+ CS(COMM) 179/2019
FERRERO SPA & ORS.
..... Plaintiff
Represented by: Ms.Vaishali Mittal, Adv. with
Ms.Mrinali Menon, Adv.
versus
KAMCO CHEW FOOD PRIVATE LIMITED & ORS.
..... Defendant
Represented by: Mr.Amit Jain, Adv. with Ms.Neelam
Pathak, Adv.
CORAM:
HON'BLE MS. JUSTICE MUKTA GUPTA
MUKTA GUPTA, J. (ORAL)
1. Learned counsel for the defendants states that since no summons were
th
issued to the defendants, no written statement was filed. The order dated 8
April, 2019 notes as under:-
“ Today Mr.Shailen Bhatia, Advocate enters appearance on
behalf of the defendants. He states that he had filed a caveat. Let
an advance copy of the paper book be supplied to Mr.Shailen
Bhatia during the course of the day. List on 10th April, 2019”.
2. It is apparent that the defendants claimed to be on caveat.
3. Be that as it may, there is no denial that the advance copy of the paper
book was supplied to the defendants in the course of the day. Thus,
CS(COMM) 179/2019 Page 1 of 25
summons have been issued to the defendants and accepted. The defendants
were thus required to file the written statement within the statutory period.
The written statement having not been filed in the statutory period the
plaintiffs are entitled to a decree of the suit in terms of Order XIII-A CPC.
4. By the present suit, the Plaintiff, inter alia, prays for a decree for
permanent injunction restraining the defendants, their partners, proprietors,
principal officers, servants and agents, distributors, or any other person
acting on their behalf from manufacturing, selling, importing, exporting,
offering for sale, advertising directly or indirectly in any manner with
confectionery products including the trade dress of the egg-shaped
confectionery chocolates under the trade mark and/ or trade dress KAMCO
MOTU PATLU
and GRV MOTU PATLU
or any other goods under the trademark or trade dress similar to
that of the Plaintiff‟s “KINDER trademarks” amounting to infringement of
registered trademarks of the Plaintiff which will lead to passing off of
defendant‟s goods as those of plaintiff‟s and/or dilution of plaintiff‟s
trademarks
, logo and trade dress or unfair competition
besides delivery up of the impugned material including products, container
boxes, labels, wrappers, stickers and stationery or any other material;
rendition of accounts of the illegally earned profits and a decree for the
amount so ascertained; order for damages and an order declaring the
CS(COMM) 179/2019 Page 2 of 25
Plaintiff‟s trademark “Kinder Trade Marks” as a well-known trademark
under Section (1) (zg) of the Trade Marks Act.
5. Plaintiff No. 1, Ferro S.P.A is a company incorporated under the laws
of Italy. Plaintiff No. 2, Soremartec S.A, is a company incorporated under
the laws of Luxemburg whereas plaintiff No. 3, Ferrero India Pvt. Ltd. is a
company incorporated under the laws of India. Pankaj Pahuja is the
authorized signatory on behalf of plaintiff nos. 1 to 3.
6. Case of the plaintiffs is that they are a part of the renowned “Ferrero
rd
Group” which traces its origin to the year 1946 in Italy. It is the 3 largest
confectionery producer in the world having 25 production plants and around
34,543 employees. In the year 2009, as per Reputation Institute Survey in
the Forbes Magazine it was ranked as the most reputable company in the
world. Further in the year 2014, it was ranked as the no. 1 employer in Italy.
Ferrero Group‟s trademarks include FERRERO ROCHER, NUTELLA, TIC
TAC, KINDER, KINDER JOY, KINDER BUENO, KINDER SCHOKO-
BONS, CONFETTERIA RAFFAELLO, FERRERO RONDNOIR etc.
4. Plaintiffs‟ trademark “KINDER JOY” is unique and distinctive being
an egg-shaped device branded by fanciful decorations. KINDER JOY and
KINDER formative trademarks ( „Kinder trademarks‟ herein) have long
been in use and thus have acquired immense goodwill and reputation all
over the world. Plaintiffs‟ KINDER JOY products comprise of two halves,
one half containing a toy and the other half containing milk and cocoa cream
with crispy wafer balls filled with cocoa cream along with a spoon.
CS(COMM) 179/2019 Page 3 of 25
5. The packaging of the said product bears a unique colour combination
of white and reddish orange along with the wave device that is
and
.
The product “Kinder Surprise”
a selection of Kinder trademark was
launched by the plaintiff as an extension of the KINDER mark in the year
1974 and thereafter is being sold worldwide in a variety of packaging,
including but not limited to the following:
6. Subsequently, the trademark “Kinder Joy” was launched worldwide
including India in an egg-shaped container in the year 2001 and the
manufacturing plant for the same is located in Baramati, Maharashtra. The
KINDER JOY confectionery products are popular all over the world
CS(COMM) 179/2019 Page 4 of 25
amongst children and adolescents for their distinctive get-up, layout and
packaging. Thereby, making its egg-shaped unique device and shape
associated widely with the KINDER range of products under
plaintiffs FERRERO group. The character represented as
is one of the distinctive feature of KINDER JOY
packaging as shown below:
7. Plaintiffs are also selling other Kinder products including “Kinder
Schoko-Bons Crispy” bearing the said “wave” device that is
and
on the respective packagings in India.
8. Kinder Joy specialties are also available in varied form for its young
consumers such as :
9. In the year 2018, the worldwide sales of Kinder Joy aggregated to be
several hundred million of Euros and the ever-growing net sales of Kinder
CS(COMM) 179/2019 Page 5 of 25
specialties in India for the years 2010 to 2018 aggregated to be over ₹ 2800
crores. Plaintiff has also invested a huge amount of money and efforts to
advertise and promote its products. The advertising/promotional expenditure
of plaintiff was over ₹ 400 crores in India till December 2018.
10. Ferrero India Pvt. Ltd., plaintiff no. 3 herein, commenced the
manufacturing and importing of KINDER specialties for domestic
consumption. The plaintiffs uses www.ferreroindia.com, www.kinder.com,
www.magic-kinder.com, www.ferrero.com, http://in.ferrerocareers.com/en-
in, www.kinderbrands.co.nz, www.kinderbrands.com.au,
www.kinder.com.ar and other websites to ensure widespread access to
information and promotion worldwide.
11. Plaintiff‟s products are also advertised on various platforms including
www.youtube.com, www.facebook.com and other third-party websites.
Along side commercial outlets in India, the said products are available on
third-party websites such as www.amazon.in, www.flipkart.com,
www.grofers.com etc.
12. Plaintiffs are the owner of hundreds of“Kinder Trade Marks”
including the distinctive wave device in more than 180 countries and only a
few of KINDER, KINDER SURPRISE and KINDER JOY trademark
registrations have been filed in the present suit. Plaintiffs have registration
in various classes including Classes 29, 30, 32 etc.
13. Due to the long, extensive and continuous use of the “Kinder
trademarks”, plaintiff has acquired common law rights and statutory rights
in the said mark. The plaintiffs‟ kinder trademark has attained goodwill and
reputation all over the world and due to its long standing and widespread
use, it has acquired the “well-known” status. The said marks are solely
CS(COMM) 179/2019 Page 6 of 25
associated only with the Ferrero Group and the range of products under it
are available world-wide. Ferrero Group is the registered proprietor for the
said marks in over 180 countries. Ferrero SPA plaintiff no.1 herein, is also
the registered proprietor of the wave design under registration no. 1411117
and 1411116 and for the word mark “KINDER” under registration no.
302455 in India. Being one of the widely selling chocolate and
confectionaries brands in the world, the Ferrero Group has been cautious in
protecting and safeguarding its rights in the said mark. Plaintiffs‟ products
are extensively advertised and promoted worldwide and are available
through retail stores in India.
14. Grievance of the plaintiff is that the defendants have been involved in
manufacturing of a product named “KAMCO MOTU PATLU -Biscuit Ball
with Choco & Milk Rabdi” under the trading style of Kamco Chew Food
Private Limited, defendant no. 1 herein, being identical to plaintiffs
“KINDER JOY” as shown below:
15. In the first week of September 2018, plaintiffs conducted an
investigation to ascertain the extent of commercial presence and availability
of the impugned product. The impugned product was listed on defendant
no.1‟s website www.kamcoindia.net as “Motu Patlu Choco Balls in Eggs
Shape Pack” under the Category: Chocolate Balls as shown below:
CS(COMM) 179/2019 Page 7 of 25
“
Furthermore, the website of defendant no.1 explained that it is a professional
manufacturer and exporter of a wide range of confectionery items in India
and abroad, including but not limited to confectionery products.
16. Plaintiffs‟ representative also made a call to the sales department of
defendant no.1 on the contact number (+91-9893329161) provided on the
official website. It was informed to the said representative that the products
of defendant no. 1 are sold worldwide. Further, on enquiring about the
availability of the said products in Delhi, the representative was provided
with the contact number of Mr. Mohit Sachdeva defendant no. 3 herein,
being the official and authorized distributor of the impugned products that is
KAMCO and GRV MOTU PATLU
along with
. The
plaintiffs‟ representative was also informed that “GRV” and “KAMCO” are
the brands of defendant No. 1 and defendant No. 2 is one of the units of
defendant No. 1.
17. Plaintiffs‟ representative searched for the contact number as provided
by defendant no. 1 that is +91 9971424292 on the internet and discovered
th
information concerning defendant no. 3. Thereafter on 4 September 2018,
the plaintiffs‟ representative met Mr. Mohit Sachdeva owner of Sachdeva
CS(COMM) 179/2019 Page 8 of 25
Bakers and Confectioners and was informed that the impugned products are
readily available with them and also confirmed that he is the distributor of
the same in Delhi. The impugned products were purchased by the plaintiff‟s
representative for a sum of ₹3448/- and a perusal of the packaging of the
same confirmed that defendant no.2 is the manufacturer of the product.
18. Further, a follow-up investigation was conducted in the first week of
March 2019 and the plaintiff learnt that the defendants continued to sell the
impugned products in Delhi. Plaintiff also learnt that other than the existing
range of products under KAMCO MOTU PATLU with the trade dress
, the defendants were also involved in the manufacturing of
another range of egg-shaped chocolates named as “HORROR
CHOCOLADE” bearing a trade dress of a skeleton, monster and other
ghostly images as shown below:
| Defendants egg-shaped chocolates called<br>"HORROR CHOCOLADE” | Egg shaped chocolates bearing a trade<br>dress of a skeleton, monster and other<br>such ghostly images. |
|---|---|
| "MOTU PATLU" chocolates under their<br>GRV brand |
CS(COMM) 179/2019 Page 9 of 25
19. The impugned products bear the registered trademark of plaintiff
st
on their packaging. On 1 March 2019, the
being
plaintiffs‟ representative purchased the aforesaid impugned products for
₹2785/-. Further, various websites such as www.youtube.com and
www.facebook.com show several videos uploaded by various users of the
impugned product such as follows:
It is also listed on third party websites such as www.indiamart.com with
details of the company with a catalogue of the products sold by it which
shows its widespread publicity and commercial outreach.
20. Defendants are manufacturing, marketing and selling the products
namely "KAMCO MOTU PATLU —Biscuit Ball with Choco & Milk Rabdi"
& "GRV MOTU PATLU —Biscuit Ball with Choco & Milk Rabdi" with
Defendant No. 3 as the authorized distributor in Delhi as shown below:
CS(COMM) 179/2019 Page 10 of 25
th
21. On 11 October 2018, the plaintiffs through their legal representatives
sent a legal notice to the defendants acquainting them of the rights vested in
Kinder Joy trademarks and trade dress which was successfully delivered.
th
However, no response to the same was received. On 7 December 2018,
plaintiffs received a copy of the caveat petition filed before this court. It is
evident from the aforesaid that the defendants continued to manufacture,
market and sell the impugned products. The said caveat petition had expired
and was not renewed by the defendants.
22. A comparison of the plaintiffs‟ product with that of the defendants‟
KAMCO MOTU PATLU and GRV MOTU PATLU shows that the egg-
shaped packaging using white and reddish orange colour
. Egg
shaped picture used on the packaging of the product with two chocolate
balls
similar to KINDER JOY‟s product packaging with dissected
egg. The presence of small egg shaped device with reddish orange and white
stripes on the product
similar wave device of KINDER JOY
CS(COMM) 179/2019 Page 11 of 25
product that is
. It also has reddish orange strips on the product
packaging
.
23. Comparison of Defendants KAMCO MOTU PATLU and GRV
MOTU PATLU with Plaintiffs KINDER JOY is shown below:
| S.No. | PLAINTIFFS<br>“KINDER JOY” | DEFENDANTS<br>“KAMCO MOTU<br>PATLU” | COMPARISON |
|---|---|---|---|
| 1. | Egg shaped packaging<br>making used by the Defendants<br>which is similar to the Plaintiffs'<br>well-known egg-shaped chocolates;<br> Manner of representation of<br>the colors on the product similar to<br>the Plaintiffs' KINDER JOY<br>chocolates;<br> Small device used to open<br>the packaging of the chocolate<br>from the bottom-left of the egg-<br>shaped chocolate; |
CS(COMM) 179/2019 Page 12 of 25
| 2. | Identical presentation of the<br>open egg-shaped chocolate<br>packaging with two chocolate balls<br>present in dark brown and milky<br>colored white chocolate base.<br> Identical manner of<br>red/orange and white wave device<br>on the packaging of the product<br>identical to the Plaintiffs' well-<br>known orange and white shaped<br>device. | ||
|---|---|---|---|
| 3. | Adoption of a nearly<br>identical lookalike character<br>namely "MOTU - PATLU" as that<br>of Plaintiff‟s KINDER JOY<br>character used widely on the<br>products and the packaging | ||
| PLAINTIFFS<br>“KINDER JOY” | DEFENDANTS<br>“GRV MOTU<br>PATLU” | COMPARISON | |
| 4. | Egg shaped packaging<br>making used by the Defendants<br>which is similar to the Plaintiffs'<br>well-known egg-shaped chocolates;<br> Manner of representation of<br>the colors on the product similar to<br>the Plaintiffs' KINDER JOY<br>chocolates;<br> Small device used to open<br>the packaging of the chocolate<br>from the bottom-left of the egg-<br>shaped chocolate; |
CS(COMM) 179/2019 Page 13 of 25
| 5. | Identical presentation of the<br>open egg-shaped chocolate<br>packaging with two chocolate balls<br>present in dark brown and milky<br>colored white chocolate base.<br> Identical manner of<br>red/orange and white wave device<br>on the packaging of the product<br>identical to the Plaintiffs' well-<br>known orange and white shaped<br>device. | ||
|---|---|---|---|
| 6. | Adoption of a nearly<br>identical lookalike character<br>namely "MOTU - PATLU" as that<br>of Plaintiff‟s KINDER JOY<br>character used widely on the<br>products and the packaging |
24. Plaintiffs are the registered proprietors of the trademarks
and they have exclusive rights over the use of the same. Any
use of these marks by third-party without authorization from plaintiffs
would result in infringement of the said marks under Section 29 of the Trade
Marks Act. Defendants have used a deceptively similar trade dress and
CS(COMM) 179/2019 Page 14 of 25
identical colour combination that is
,
and
to induce consumers into mistaken impression that the
defendants‟ product stems from the plaintiffs‟. Further, defendants‟ use of
the said colour combination is “use in the sense of a trademark” and such
use is likely to cause confusion in minds of the public. It could be
ascertained from the aforementioned that the triple identity test for
infringement of trademark is hence satisfied that is defendants are associated
with the plaintiffs‟ business, goods and services of the defendant emanates
from the plaintiffs and the defendants have been authorized by the plaintiffs
to provide its goods and services under the plaintiffs marks.
25. From the pleadings of the plaintiff in the plaint as also the documents
enclosed with the plaint along with the necessary certificate, the plaintiffs
have clearly made out a case for grant of injunction in terms of prayer (i),
(ii), (iii) and (iv) of para 53 as the defendant is violating the rights of the
plaintiff in its trademark.
26. In the present suit the plaintiff also prays for a decree of declaration
that the Plaintiffs „Kinder Trade Marks‟ are well-known trademarks.
27. Section 2(zg) which defines a “well-known trademark” and Section
11(6) of the Trademark Act read as under:
| “2 | (zg) “well-known trade mark”, in relation to any goods or |
|---|---|
| services, means a mark which has become so to the substantial | |
| segment of the public which uses such goods or receives such |
CS(COMM) 179/2019 Page 15 of 25
| 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. |
…...
| 11 | (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.”
CS(COMM) 179/2019 Page 16 of 25
28. In the decision reported as ( 2009) 41 PTC 284 (Del) Rolex Sa Vs. Alex
Jewellery Pvt. Ltd. & Ors . this Court dealing with a well-known trademark
held:
“15. Section 2(4)(c) defines a well known trademark as the
one which in relation to any goods, means a mark which has
become so to the substantial segment of the public which uses
such goods that the use of such mark in relation to other goods
would be likely to be taken as indicating a connection in the
course of trade between those goods and a person using the
mark in relation to the first mentioned goods. In my view the
segment of the public which uses the watches of the
category/price range as the watches of the plaintiff, ROLEX is a
well known trademark. The said segment of the public if comes
across jewellery/artificial jewellery also bearing the trademark
ROLEX is likely to believe that the said jewellery has a
connection to the plaintiff.
16. Yet another provision in the Act, though for the guidance
of the Registrar but in relation to well known trademarks is to
be found in Section 11(6) of the Act. Upon testing the trademark
of the plaintiff on the touchstone of the ingredients of the said
provision also, I find the said trademark of the plaintiff to be
satisfying the test of a well known trademark. The documents
filed by the plaintiff i.e., the advertising done in the media in
India since 1947 and particularly in years immediately
preceding the suit, registrations obtained show that relevant
section of the public in India had knowledge of the trademark
ROLEX in relation to the watches. The pleadings of the plaintiff
and which are not contested also show that the plaintiff for the
last nearly one century has been using the said trademark
spread over nearly the entire developed/developing world. The
advertisements of the plaintiff had appeared in the magazines in
this country even when there were import restrictions. The
CS(COMM) 179/2019 Page 17 of 25
plaintiff has filed documents to show registration of the
trademark in a large number of countries and also to show
successful enforcement of its rights with respect to the said
trademark.
20. Over the years and very quickly in recent times, the
international boundaries are disappearing. With the advent of
the internet in the last over ten years it cannot now be said that
a trademark which is very well known elsewhere would not be
well known here. The test of a well known trademark in Section
2 is qua the segment of the public which uses such goods. In my
view any one in India, into buying expensive watches, knows of
ROLEX watches and ROLEX has a reputation in India. Not only
so, to satisfy the needs/demands of consumers in different
countries, the well known international brands which were
earlier available at prices equivalent to prices in country of
origin and which owing to the exchange rate conversion were
very high, have adapted to the Indian situation and lowered
prices. A large number have set up manufacturing facilities
here and taken out several variants. Thus, merely because today
the price of a ROLEX watch may be much higher than the price
of items of jewellery of the defendants as argued, cannot come
in the way of the consumer still believing that the jewellery is
from the house of the plaintiff. Also, there can be no ceiling to
the price at which the defendants will continue to sell their
jewellery. The defendants have claimed to be selling rolled gold
jewellery; with the price of gold soaring, there is no certainty
that the pieces of artificial jewellery of the defendants would not
also be in the same range as the watches of the plaintiff. Even
otherwise, the trend in modern times has been towards
artificial/semi precious jewellery. In fact, the attraction to gold
is confined to this part of the world only. In India also today
there are several brands of artificial jewellery/semi precious
CS(COMM) 179/2019 Page 18 of 25
jewellery whose brand value and/or prices are quite
comparable to the gold jewellery of the conventional gold
smiths
24. The goods of the plaintiff may lose their sheen to the
strata of the society for which they are intended if such strata
finds the goods in the same brand name even though not from
the house of the plaintiff being available for a much lower
price. The goods of the plaintiff would then cease to be a status
symbol or a fashion statement. Undoubtedly, the same would be
to the detriment of the plaintiff. Having found a prima facie
case in favour of the plaintiff and irreparable injury to be
caused to the plaintiff by allowing the defendant to continue
using the trademark, I also find the element of balance of
convenience to be satisfied in the present case. The registration
of the mark of the plaintiff is over 90 years prior to the claimed
commencement of the use by the defendant. Even if the
defendant, at the time of commencing the use, did not know of
the inherent risk in adopting the well known trade mark, the
defendant, at least, immediately on applying for registration
and on opposition being filed by the plaintiff became aware of
the perils in such use. Thus, use by the defendant of the mark is
for short time only and use during the period of opposition is of
no avail. The mark has got no relation to the jewellery being
marketed by the defendants. Unless the defendant is deriving
any advantage of the goodwill/brand value of the plaintiff and
which it is not entitled to, it ought not to make any difference in
the business of the defendants if the said jewellery is sold under
a mark other than ROLEX.”
29. Dealing with the “well-known trademark”, this Court in the decision
reported as 2011 (46) PTC 244 (Del) Tata Sons Ltd. Vs. Manoj Dodia &
Ors . held:
CS(COMM) 179/2019 Page 19 of 25
“5. A well known trademark is a mark which is widely known
to the relevant general public and enjoys a comparatively high
reputation amongst them. On account of advancement of
technology, fast access to information, manifold increase in
international business, international travel and
advertising/publicity on internet, television, magazines and
periodicals, which now are widely available throughout the
world, of goods and services during fairs/exhibitions, , more
and more persons are coming to know of the trademarks, which
are well known in other countries and which on account of the
quality of the products being sold under those names and
extensive promotional and marketing efforts have come to enjoy
trans-border reputation. It is, therefore, being increasingly felt
that such trademark needs to be protected not only in the
countries in which they are registered but also in the countries
where they are otherwise widely known in the relevant circles
so that the owners of well known trademarks are encouraged to
expand their business activities under those marks to other
jurisdictions as well. The relevant general public in the case of
a well known trademark would mean consumers, manufacturing
and business circles and persons involved in the sale of the
goods or service carrying such a trademark.
6. The doctrine of dilution, which has recently gained
momentous ,particularly in respect of well known trademarks
emphasises that use of a well known mark even in respect of
goods or services, which are not similar to those provided by
the trademark owner, though it may not cause confusion
amongst the consumer as to the source of goods or services,
may cause damage to the reputation which the well known
trademark enjoys by reducing or diluting the trademark's power
to indicate the source of goods or services.
CS(COMM) 179/2019 Page 20 of 25
7. Another reason for growing acceptance of trans-border
reputation is that a person using a well known trademark even
in respect of goods or services which are not similar tries to
take unfair advantage of the trans-border reputation which that
brand enjoys in the market and thereby tries to exploit and
capitalize on the attraction and reputation which it enjoys
amongst the consumers. When a person uses another person's
well known trademark, he tries to take advantage of the
goodwill that well known trademark enjoys and such an act
constitutes an unfair competition.
8. The concept of confusion in the mind of consumer is
critical in actions for trademark infringement and passing off,
as well as in determining the registrability of the trademark but,
not all use of identical/similar mark result in consumer
confusion and, therefore, the traditionally principles of
likelihood of confusion has been found to be inadequate to
protect famous and well known marks. The world is steadily
moving towards stronger recognition and protection of well
known marks. By doing away with the requirement of showing
likelihood of confusion to the consumer, by implementing anti-
dilution laws and recognizing trans-border or spill over
reputation wherever the use of a mark likely to be detrimental to
the distinctive character or reputation of an earlier well known
mark. Dilution of a well known trademark occurs when a well
known trademark loses its ability to be uniquely and
distinctively identify and distinguish as one source and
consequent change in perception which reduces the market
value or selling power of the product bearing the well known
mark. Dilution may also occur when the well known trademark
is used in respect of goods or services of inferior quality. If a
brand which is well known for the quality of the products sold
or services rendered under that name or a mark similar to that
CS(COMM) 179/2019 Page 21 of 25
mark is used in respect of the products which are not of the
quality which the consumer expects in respect of the products
sold and/or services provided using that mark, that may evoke
uncharitable thoughts in the mind of the consumer about the
trademark owner's product and he can no more be confident
that the product being sold or the service being rendered under
that well known brand will prove to be of expected standard or
quality.
9. Article 6bis of Paris Convention, 1967 enjoined upon the
Countries of the Union, subject to their legislation so permitting
or at the request of the interested parties, to refuse or to cancel
the registration and to prohibit the use of trademark which
constitutes a representation and imitation or translation liable
to create confusion of a mark considered by the competent
authority of the country of registration or use to be well known
in that country as being already the mark of a person entitled to
the benefits of Convention and used for identical or similar
goods. This provision was also to apply when the essential part
of the mark constituted a reproduction of any such well known
mark or an imitation liable to create confusion therewith. The
prohibition against use of a well known trademark, under Paris
Convention, was, thus, to apply only when the impugned use
was in respect of identical or similar goods. Vide Article 16 of
TRIPS Agreement 1994, it was decided that Article 6bis of Paris
Convention, 1967 shall apply mutatis mutandis to services as
well as to goods or services, which are not similar to those in
respect of which a trademark is registered, provided that the
use of that trademark in relation to those goods or services
would indicate a connection between those goods or services
and the owner of the registered trademark and the interests of
the owner of the registered trademark and are likely to be
damaged by the impugned use. It was further decided that in
CS(COMM) 179/2019 Page 22 of 25
determining whether the trademark is well known, the members
shall take account of the knowledge of the trademark in relevant
sectors of the public, including knowledge in the member
concerned which has been obtained as a result of the promotion
of the trademark. Thus, the TRIPS Agreement, 1994 brought
about a material change by prohibiting use which constitutes a
representation or imitation and is likely to create confusion
even if such use is in relation to altogether different goods or
services, so long as the mark alleged to have been infringed by
such use is a well known mark. This Article, thus, grants
protection against dilution of a trademark, which may be
detrimental to the reputation that the business carried under a
well known trademark enjoys.
10. Well known marks and trans-border reputation of brands
was recognized by Courts in India, even before Trade Marks
Act, 1999 came into force. In , the manufacturers of Mercedes
Benz sought an injunction against the Defendants who were
using the famous "three pointed star in the circle" and the word
"Benz". The Court granted injunction against the Defendants
who were using these marks for selling apparel. Similarly, in
Whirlpool Co. and Anr. v. N.R. Dongre (1996) PTC 415 (Del.)
the Plaintiff Whirlpool had not subsequently registered their
trademark after the registration of the same in 1977. At the
relevant time, the Plaintiff had a worldwide reputation and used
to sell their machines in the US embassy in India and also
advertised in a number of international magazines having
circulation in India. However, the Defendant started using the
mark on its washing machines. After an action was brought
against them, the Court held that the Plaintiff had an
established "transborder reputation" in India and hence the
Defendants were injuncted from using the same for their
products. In the Kamal trading Co. v. Gillette UK Limited (1998
CS(COMM) 179/2019 Page 23 of 25
IPLR 135), injunction was sought against the Defendants who
were using the mark 7'O Clock on their toothbrushes. This was
further reaffirmed by the Bombay High Court, which held that
the Plaintiff had acquired an extensive reputation in all over the
world including India by using the mark 7'O Clock on razors,
shaving creams. The use of an identical mark by the Defendant
would lead to the customer being deceived.”
30. Applying the tests laid down for determining a well-known mark, the
KINDER TRADE MARK has been in use for almost two decades now and
has gained immense goodwill and reputation around the world. The said
marks are solely associated with the Ferrero Group. The Ferrero group also
enjoys the status of registered proprietor for „Kinder Trade Marks‟ in more
than 180 countries. Plaintiff No. 1 is also the registered proprietor of its
unique wave design and for the word mark KINDER under registration
number 302455 in India. The sales figures and the promotional figures also
exhibit the high quality of goods and services under the trademark and the
trademark is a commonly known trademark amongst children and
adolescents. Hence, a decree in favour of the plaintiff and against the
defendant in terms of prayer (v) of para 53 is passed declaring the
„KINDER‟ as a well-known trademark.
31. Learned counsel for the plaintiff‟s states that she does not press the
relief of damages as per prayer (viii) of para 53. Plaintiffs also does not
press prayers (vi) and (vii) of para 53. Hence no decree is being passed in
terms of prayers (vi),(vii) and (viii).
32. As regards cost, the plaintiffs has not filed an affidavit indicating the
actual cost incurred by the plaintiff, however the court-fee paid by the
plaintiffs amounts to ₹2,05,000.
CS(COMM) 179/2019 Page 24 of 25
33. Suit is accordingly decreed in terms of prayer (i), (ii), (iii), (iv) and (v)
of para 53 of the plaint in favour of the plaintiffs and against the defendants.
Cost of ₹2,05,000 is awarded in favour of the plaintiffs and against the
defendants.
I.A. 5127/2019 (under Order XXXIX Rule 1 and 2 CPC)
I.A. 5128/2019 (under Order XI Rule 1(4) CPC)
I.A. 5129/2019 (under Section 151 CPC)
Disposed of as infructuous.
(MUKTA GUPTA)
JUDGE
DECEMBER 18, 2019
„mv/sk‟
CS(COMM) 179/2019 Page 25 of 25