Delhi High CourtIntellectual Property LawCivil Procedure and Evidence

Prior user of a trademark for specific goods prevails over a subsequent user for the same goods despite the latter's reputation in other product categories.

Kent RO Systems Limited & Ors. v. Kent Cables Private Limited & Ors. [FAO s(OS)(Comm) 141/2023 & 142/2023]

Prior user of a trademark for specific goods prevails over a subsequent user for the same goods despite the latter's reputation in other product categories.. Kent RO Systems Limited & Ors. v. Kent Cables Private Limited & Ors. [FAO s(OS)(Comm) 141/2023 & 142/2023]. Delhi High Court. LawLens
The LawLens card for this judgmentXLinkedInWhatsApp

In brief

The question

Whether the use of the mark 'KENT' by the Respondents for fans constitutes infringement of the Appellants' registered trademarks under Section 29 of the Trade Marks Act, 1999.

The court held

The Court dismissed the appeals and upheld the Single Judge's order.

It also directed

It held that the Respondents, as prior users of the mark for fans, are protected under Section 34.

The Appellants failed to establish a prima facie case for infringement or passing off due to the lack of registration for fans and their prior acquiescence.

Consequently, the Appellants remain restrained from manufacturing or selling fans under the 'KENT' mark pendente lite.

01Facts

The Appellants (Kent RO) adopted the mark ‘KENT’ for oil meters in 1988

p. 2, para 4

Appellants expanded into water purifiers in 1999.

p. 3, para 5

The Respondents (Kent Cables) adopted ‘KENT’ for electrical wires and cables in 1984, obtaining registration in 1986.

pp. 8, para 17-18

In 1998, Respondents applied for ‘KENT’ in Class 11 for fans.

p. 8, para 19

Appellants opposed this in 2007 and issued a cease-and-desist notice in 2011 but took no further legal action until 2022.

pp. 11, para 26-27

Both parties filed cross-suits (CS(COMM) 596/2022 and 613/2022) seeking to restrain the other from using ‘KENT’ for fans.

pp. 7, para 14-16

The Single Judge restrained the Appellants from manufacturing fans and refused to injunct the Respondents.

p. 1, para 2

02Issues

i.Whether the use of the mark 'KENT' by the Respondents for fans constitutes infringement of the Appellants' registered trademarks under Section 29 of the Trade Marks Act, 1999.

p. 24, para 58

ii.Whether the Appellants are entitled to an interim injunction against the Respondents despite the prior adoption of the mark by the Respondents and the Appellants’ long-term inaction.

p. 34, para 71

iii.Whether the Single Judge exercised discretionary power perversely in restraining the Appellants from launching fans under the ‘KENT’ mark.

p. 36, para 75

03Law Applied

The court applied Section 29 of the Trade Marks Act, 1999, which defines infringement through identity/similarity of marks and goods.

p. 29, para 62

It relied on Section 34 of the Act, which protects the vested rights of prior users against registered proprietors.

p. 33, para 68

The court invoked the principle from Vishnudas v. Vazir Sultan Tobacco Co. Ltd., establishing that registration in a specific class does not grant a monopoly over all goods within that class.

p. 21, para 48

Furthermore, it followed the appellate standard in Wander Ltd. v. Antox India (P) Ltd., which restricts interference with discretionary interlocutory orders unless they are perverse or contrary to law.

p. 37, para 75

Provisions in the judgment · 2 · Linked ones open on LawLens

Trade Marks Act, 1999 Section 29Section 34

04Reasoning

The Court found that while the Appellants possess registrations in Class 11, these are specifically for water purifiers and do not automatically encompass fans.

p. 28, para 61 · p. 32, para 66

The Respondents were identified as the prior adopters of ‘KENT’ (1984) and successfully demonstrated prima facie use of the mark for fans since 2009 through utility approvals and invoices.

p. 23, para 55 · p. 34, para 70

The Court reasoned that moving from cables to fans constitutes a "natural progression" of business.

p. 32, para 64

Crucially, the Appellants' knowledge of the Respondents' use since 2007/2011, followed by a decade of silence, amounted to acquiescence, disentitling them to discretionary relief.

pp. 35, para 71-72

The Court noted that since the Appellants had not yet commercially launched fans, the balance of convenience favoured the Respondents.

p. 13, para 62

05Holding

The Court dismissed the appeals and upheld the Single Judge's order.

p. 38, para 76

It held that the Respondents, as prior users of the mark for fans, are protected under Section 34.

p. 34, para 69

The Appellants failed to establish a prima facie case for infringement or passing off due to the lack of registration for fans and their prior acquiescence.

p. 35, para 71

Consequently, the Appellants remain restrained from manufacturing or selling fans under the 'KENT' mark pendente lite.

p. 36, para 73
Delhi High Court

Original Court PDF

Kent RO Systems Limited & Ors. v. Kent Cables Private Limited & Ors. [FAO s(OS)(Comm) 141/2023 & 142/2023]

Delhi High Court

Click to open original judgment

Original judgment, available to read, download and summarize on LawLens.in

Click to open original judgment