Delhi High CourtIntellectual Property LawCivil Procedure and Evidence

Prior user rights in specific goods override trademark registrations of well-known marks for different classes.

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

Prior user rights in specific goods override trademark registrations of well-known marks for different classes.. Kent RO Systems Limited & Ors. v. Kent Cables Private Limited & Ors. [FAO(OS)(COMM) 141/2023 & 142/2023]. Delhi High Court. LawLens
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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 High Court dismissed the appeals and upheld the Single Judge's order

It also directed

the Respondents are prior users of the mark ‘KENT’ in the specific category of fans

Kent RO is not entitled to an injunction due to acquiescence and delay

Kent RO is rightly restrained from launching fans under ‘KENT’ to prevent confusion, as the Respondents established prior goodwill in that specific trade

The Court found no perversity in the Single Judge’s exercise of discretion

01Facts

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

p. 2 · ¶ 4

launched RO water purifiers under the same mark in 1999

p. 3 · ¶ 5

They hold registrations in Class 11 specifically for water purifiers

p. 26

The Respondents (Kent Cables) adopted ‘KENT’ for electrical wires/cables in 1984, obtained registration in 1986

p. 8 · ¶ 18

applied for registration for ‘fans’ in Class 11 in 1998

p. 8 · ¶ 19

In 2022, both parties filed cross-suits: Kent RO sought to restrain the Respondents from using ‘KENT’ for fans and kitchen appliances, while Kent Cables sought to restrain Kent RO from launching fans under ‘KENT’

pp. 7-10

The Single Judge restrained Kent RO from selling fans, finding Kent Cables to be the prior user for that specific product

pp. 10-13

Kent RO appealed.

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 · ¶ 58 · p. 29 · ¶ 62

ii.Whether the Appellants are entitled to an interim injunction despite prior knowledge of the Respondents' use of the mark for fans since 2011

p. 11 · ¶ 26 · p. 34 · ¶ 71

iii.Whether the Respondents, as prior adopters of the mark for electrical goods, have a superior right to use the mark for fans as a natural business expansion

p. 31 · ¶ 63

03Law Applied

The Court applied Section 29 of the Trade Marks Act, 1999, which defines infringement through identity/similarity of marks and goods likely to cause confusion

pp. 29-31

It further relied on Section 34 of the Act, which protects the "vested rights" of a prior continuous user against a registered proprietor

p. 33 · ¶ 68

The principle of "acquiescence" was applied, where a proprietor who stays dormant despite knowledge of an infringement loses the right to an injunction

p. 11 · ¶ 27 · p. 35 · ¶ 71

Regarding appellate intervention, the court followed the doctrine in *Wander Ltd. v. Antox India (P) Ltd.*, which mandates that appellate courts should not interfere with a lower court's discretionary interlocutory order unless it is perverse, arbitrary, or contrary to law

p. 36 · ¶ 75

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

Trade Marks Act, 1999 Section 29Section 34

04Reasoning

The Court observed that while Kent RO has a massive reputation in water purifiers, its Class 11 registrations are specific to purifiers and do not encompass fans

pp. 28-29 · ¶ 61

The Court found that fans are not "cognate or allied" to water purifiers merely by sharing a numerical Class (Class 11)

p. 32 · ¶ 65

Conversely, the Respondents demonstrated bona fide adoption of ‘KENT’ in 1984 for electrical wires—predating Kent RO's 1988 adoption—and showed continuous use for fans since at least 2009

p. 23 · ¶ 55 · p. 34 · ¶ 70

The Court held that Kent RO's failure to sue after issuing a cease-and-desist notice in 2011 constituted acquiescence, as they allowed the Respondents to build a business in fans for over a decade

p. 35 · ¶ 71

The Court reasoned that since fans are a natural progression for an electrical cable manufacturer, the Respondents' use was not "without due cause" under Section 29(4)

p. 32 · ¶ 64

05Holding

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

p. 36 · ¶ 76

the Respondents are prior users of the mark ‘KENT’ in the specific category of fans

p. 34 · ¶ 69

Kent RO is not entitled to an injunction due to acquiescence and delay

p. 35 · ¶ 71

Kent RO is rightly restrained from launching fans under ‘KENT’ to prevent confusion, as the Respondents established prior goodwill in that specific trade

p. 36 · ¶ 73-74

The Court found no perversity in the Single Judge’s exercise of discretion

p. 36 · ¶ 75
Delhi High Court

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

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