Comfort Travel is a brand name for the manufacturer of luxury cars by ComfoCar Ltd. The company is based in Japan. It has earned world-wide reputation of producing varieties of luxury cars. It has presence in many countr

CS Professional · Intellectual Property Rights - Laws and Practices · PYQS · December 2019
Comfort Travel is a brand name for the manufacturer of luxury cars by ComfoCar Ltd. The company is based in Japan. It has earned world-wide reputation of producing varieties of luxury cars. It has presence in many countries across the world. In India it has acquired registration in different classes of luxury cars for its trade mark "Comfo", "ComfoTrvl" and "Comfo Device" during the years 1989-2003. It launched the world-wide world's first commercial hybrid car called "Deception" in Japan in the year 1997 and in other countries like UK, Australia, the USA etc. during the year 2000-01. The company claims to have registered the trade mark 'Deception' in different countries as early as the year 1990 (in Japan) and in other jurisdictions around the world. In India the car was released in the year 2009 and till then the company had not registered the mark in India. It plans to enter in the Indian market in the year 2008 with new luxury car. The Company discover that the Company ZZZ had not only got the "deception" registered in India way back in the year 2002-03 for all types of auto parts and accessories but they had also been using the said trade mark in carrying out trade in such auto parts and accessories. The first party or plaintiff therefore approached the trade mark registry for cancellation of the registered trade mark of the defendant and also filed the suit in the court questioning the other party's using the well-known trade mark of the first party without their authorisation and taking unfair advantage of the reputation and goodwill of the first party earned over a period of time across the globe. Plaintiff prayed for permanent injunction restraining the defendant from using the plaintiff's registered trade mark and permanent injunction restraining the defendant from using the well known unregistered marks "deception". The defendant replied that the they are using the mark 'Comfo', 'Comfo India' and 'Comfo device' on the packaging materials in which the auto parts manufactured by them are packed for the purpose of item identification and nothing more. Since operating in the same area of industry they are supposed to indicate the cars for which the spare parts have been manufactured by displaying the name on the packaging of the products. Therefore, it is honest use under section 30 and therefore protected under the Act. With regards to the 'Deception' they had registered the mark in year 2002 and continuously using same since the year 2001. They have been regularly supplying the auto accessories to various automobiles giants. By the time they have acquired market reputation for the mark and their services. Since they are operating in India from a time when the plaintiff has not established the product, therefore they are entitle to have the trade mark in their favour. In the background of the above facts, analyse the following issues: Can a trade mark which has acquired reputation in foreign State is entitled to acquire trade mark in India?

Answer & Explanation:

The object of Trade Mark law has been explained by the Supreme Court in Dau Dayal v. State of Utttar Pradesh, AIR 1959 SC 433 , in the following words: "The object of trade mark law is to protect the rights of persons who manufacture and sell goods with distinct trade marks against invasion by other persons passing off their goods fraudulently and with counterfeit trade marks as those of the manufacturers. Normally, the remedy for such infringement will be by action in Civil Courts. But in view of the delay which is incidental to civil proceedings and the great injustice which might result if the rights of manufacturers are not promptly protected, the law gives them the right to take the matter before the Criminal Courts, and prosecute the offenders, so as to enable them to effectively and speedily vindicate their rights". The trade mark law in India is a 'first-to-file' system that requires no evidence of prior use of the mark. A trade mark application can be filed on a 'proposed to be used or intent-to-use' basis or based on use of the mark. The term 'use' under the Trade Marks Act, 1999 has acquired a broad meaning and does not necessarily mean the physical presence of the goods in India. Presence of the trade mark on the Internet and publication in international magazines and journals having circulation in India are also considered as use in India. One of the first landmark judgments in this regard is the "Whirlpool case" [ N. R. Dongre v. Whirlpool Corporation, 1996 (16) PTC 583 ] in which the Court held that a rights holder can maintain a passing off action against an infringer on the basis of the trans-border reputation of its trade marks and that the actual presence of the goods or the actual use of the mark in India is not mandatory. It would suffice if the rights holder has attained reputation and goodwill in respect of the mark in India through advertisements or other means. In the case of Daimler Benz v. Hybo Hindustan [AIR 1994 Del 2369] , the defendant had been using the plaintiff's logo and the word 'Benz' for which the plaintiff sought injunction against such use of his logo. The court while recognizing plaintiff's logo as a well-known trademark on the ground of trans-border reputation and goodwill granted injunction against the impugned use of logo by the defendant. In another case of Rolex Sa v. Alex Jewellery Pvt. Ltd. & Ors. [2009 (41) PTC 284 (Del.)] , the defendants were using the trade name "Rolex" of the plaintiff while dealing in artificial jewellery for which the plaintiff brought an action against the defendant in order to prevent him from using his trade name further. The court held that the plaintiff's business dealt with watches, and the section of public using watches recognizes the trade name Rolex, for which it is a well-known trademark. The same segment of people if finds artificial jewelleries with the same trade name might assume the artificial jewellery to be from plaintiff's business. For the same reasons, the court considering Rolex to be a well-known trademark granted injunction against the acts of defendants. In the present case the respondents are the original and earlier users of the trademark. Being a signatory to the Paris Convention and TRIPs Agreement, India recognizes the concept of a well-known trade marks. A mark, which has been designated as a well-known mark, is accorded stronger protection. The Trade Marks Act, 1999 casts an obligation on the Registrar to protect a well-known mark against an identical or similar trade mark. Accordingly, the Registrar should allow the Japanese Company to use the Trade Mark.

Topics: Trade Marks

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