CS (COMM) 110:2019 Bata
CS (COMM) 110:2019 Bata
CS (COMM) 110:2019 Bata
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* IN THE HIGH COURT OF DELHI AT NEW DELHI
Reserved on: 3rd April, 2019
Date of decision:16th April, 2019
+ CS (COMM) 110/2019
BATA INDIA LIMITED ..... Plaintiff
Through: Mr. Neeraj Grover, Mr. Anmol
Chadha and Ms. Rudrarti Kaur,
Advocates.
versus
I.A. 3051/2019 (u/Order XXXIX Rules 1 and 2 CPC) and I.A. 3686/2019
(u/Order XXXIX Rule 4 CPC)
1. The present order disposes of two applications being under Order
XXXIX Rule 1 and 2 CPC and under Order XXXIX Rule 4 CPC.
2. The Plaintiff – Bata India Limited (hereinafter „Plaintiff‟) has filed
the present suit seeking an injunction restraining infringement of trademark,
passing off, unfair competition, damages, etc. The facts as essential for the
present order are narrated below.
Plaintiff’s case
3. The Plaintiff is a well-known manufacturer and seller of footwear. It
sample of the Defendant No.2’s product and filed the present suit. The
allegation of the Plaintiff is that the Defendant No.2’s use of the mark
‘POWER FLEX‟ and ‘THE POWER OF REAL LEATHER‟ is a violation of
its statutory and common law rights.
5. When the suit was listed before this Court on 27th February, 2019, the
following order was passed:
“I.A. 3051/2019 (u/O XXXIX Rules 1 and 2 CPC)
8. The Plaintiff – Bata India Limited has filed
the present suit seeking injunction restraining
infringement of registered trademark and passing off,
damages and delivery up in respect of its trademark
„POWER‟ used for footwear and other allied
products. The case of the Plaintiff is that it adopted
the mark „POWER‟ in 1971 for footwear and has
since been using the same exclusively and extensively.
The sales and advertising figures for the mark have
been placed in para 11, which shows that the sales in
the last calendar year was approximately Rs.480
crores. The mark „POWER‟ has been used extensively
by the Plaintiff, who has several brand ambassadors
who have promoted the mark.
9. The grievance of the Plaintiff in the present
suit is that the Defendants have adopted the mark
„POWER FLEX‟ and the slogan „THE POWER OF
REAL LEATHER‟ for footwear. It is submitted that
the Plaintiff owns several registrations for the mark
„POWER‟ both in logo and in word form as also in
various derivatives, the oldest of these dating back to
1988. Accordingly, Mr. Neeraj Grover, Ld. counsel
appearing for the Plaintiff submits that the use of the
mark „POWER FLEX‟ and the slogan „THE POWER
OF REAL LEATHER‟ violates the Plaintiff‟s right in
the mark „POWER‟.
10. The Court has perused the documents on
record. It is clear that Defendants have adopted the
stock. This application was disposed of on 27th March, 2019 in the following
terms:
“5. The Defendants were given liberty to move an
application for disposal of any existing stock. Since
this was stock which was already manufactured by the
Defendants, prior to the grant of injunction on 27 th
February, 2019, the Defendant is permitted to dispose
of the stock as mentioned in the statements subject to
the following conditions:
(i) The Defendants are directed to file monthly
statement of disposal of the said stock;
(ii) Defendants shall file an affidavit in respect of
the value of the said stock which is disposed of;
(iii) No fresh manufacturing is permitted with the
impugned marks.
6. The permission to dispose of the stock is subject to
further orders in the interim injunction application
which is listed for hearing on 3rd April 2019.”
reiterated that the word ‘POWER‟ is registered not just for footwear but also
in respect of leather goods. It has already been granted protection by this
Court in another proceedings being CS(COMM) 1117/2016 where the
Defendant was using the mark ‘POWER‟ for footwear. Further, sales of the
Plaintiff’s footwear under the mark ‘POWER‟ is approximately Rs.450
crores and constitute almost 20% of the total sales of the Plaintiff company
which is in the range of Rs.2,600 crores. The Plaintiff has been extremely
vigilant about its rights and has filed several oppositions against trademarks
which are containing the word ‘POWER‟ or derivatives of the ‘POWER‟
mark. It is further submitted that ‘POWER FLEX‟ is being used by the
Defendant No.2 independently and not in conjunction with „RED CHIEF‟.
10. Photographs of the Defendant No.2’s products have been shown to
the Court. According to the Plaintiff, the cause of action for filing the suit
arose only when the Defendant No.2 filed the evidence of the use of the
mark in the opposition proceedings before the trademark Registry. In fact,
the Plaintiff had no knowledge of the Defendant No.2’s use of the mark
before that. On delay, Mr. Grover submits that the Plaintiff has always been
vigilant and there was no reason for it not to take action against the
Defendants if the use of the mark ‘POWER FLEX‟ by Defendant No.2 had
come to its knowledge. It is further submitted that the Defendant No.2
having itself applied for registration of the mark ‘POWER FLEX‟, is
estopped from arguing that the mark ‘POWER‟ is descriptive or laudatory or
a dictionary word. He relies on the following cases:
Automatic Electric Limited v. R. K. Dhawan & Ors. 77 (1999) DLT
292;
Pankaj Goel v. Dabur India Ltd. 2008 (38) PTC 49 (Del)
FLEX‟ and will always use the mark ‘POWER FLEX‟ with the mark „RED
CHIEF‟ in a composite manner and no special prominence would be given
to the word ‘POWER‟ in the advertisement.
14. Mr. Grover, in rejoinder, submits that the judgment in Pankaj Goel
(supra) completely settles the law in respect of delay. Moreover, the
Defendant No.2’s advertisements are for various variants of the „RED
CHIEF’ brand. The total annual turnover of the Defendant No.2 is itself
Rs.257 crores, out of which, a substantial sale is by way of manufacturing of
leather goods for third parties. There is no mention of the actual sales of the
‘POWER FLEX‟ branded shoes. Further, the user of Defendant No.2 appears
to have been very minimal initially, but recently Defendant No.2 has started
expanding. Most of the advertisements relied upon are for the mark „RED
CHIEF‟ or „FURO‟. It is further submitted that Mr. Virat Kohli, who is now
a celebrated cricketer, was not so prominent at the time of the release of
these advertisements by Defendant No.2. Finally, Mr. Grover emphasizes on
the fact that Defendant No.2 was obviously was well aware of the Plaintiff’s
mark ‘POWER‟ and in such cases, the mark and the class of goods being
identical, confusion should be presumed.
observing as under:
“25. Another factor which goes against the plaintiff is
the manner in which the parties have been arrayed.
The defendant No. 2 is the main defendant who has the
registration of the well known mark 'MICO' in respect
of automotive parts. However, the plaintiff has chosen
to array Maggon Auto Centre as the main defendant
when, according to the averments made in paragraph
17 of the plaint, it is averred that the defendant No. 1 is
only a dealer of the impugned goods of the defendant
No. 2 and that the exact relationship between them is
not known to the plaintiff and that the defendant No. 2
is called upon to disclose the exact relationship
between them. It is unfortunate that the main defendant
(Motor Industries Co. Ltd.) has been arrayed as
defendant No. 2 and Maggon Auto Centre, who is
alleged to be a dealer of the main defendant and whose
exact relationship is unknown to the plaintiff is arrayed
as defendant No. 1. It is not only in this case, but in
several other cases that this Court has noticed this
unhealthy trend on the part of the plaintiffs to array the
main defendant as defendant No. 2 or defendant No. 3
while naming some innocuous dealer or retail outlet as
defendant No. 1. The object is easily discernible. When
the counsel for the main defendants scan the list of
cases, they would not be able to know as to whether
any case has been filed against them so as to enable
them to appear on the very first date on which the case
is listed before court. The very fact that the plaintiff
has also indulged in this practice is also an indicator
that it did not want the counsel for the defendant No. 2
to appear on the first date on which the matter was
taken up for consideration of the grant or non-grant of
ad interim injunction. This fact also disentitles the
plaintiff to any equitable relief. I am of the view that
the plaintiff has concealed and suppressed material
facts from this Court.”
The Ld. Division Bench has upheld this view in Micolube India Ltd. v.
Maggon Auto Centre 2008 (38) PTC 271 (Del).
16. It is noticed that, despite this being the settled legal position, in most
cases, an unknown Defendant or an employee or Director is impleaded as
the first Defendant to avoid detection in the cause list. Such a practice
having been held to be impermissible by the Division Bench, the same
cannot be permitted to continue in any manner. Defendant No.1 is only a
retailer, like the other hundreds of retailers of Defendant No.2 across the
country. Defendant No.1 is accordingly deleted from the array of parties.
Registry is directed to ensure strict compliance of the judgment in the
Micolube India SJ (supra) cited above and seek an undertaking of the
Plaintiff in IPR cases where there are multiple Defendants that the
Defendant No.1 being arrayed is the main contesting Defendant in the suit.
Findings on Merits
17. The Court at the interim stage has to take merely a prima facie view
of the matter, on the basis of the documents on record. The Plaintiff has
placed on record several trademark registrations for the mark ‘POWER‟ and
‘POWER‟ derivative marks. While some of the ‘POWER‟ marks of the
Plaintiff have not been renewed and have been abandoned, a large number
of ‘POWER‟ marks are still in operation and are valid. At the interim stage,
the Court is not to go into dissection and analysis of each registration.
Broadly, the list of trademark registrations contained in para 9 of the plaint
shows that the earliest registration dates back to 1971 for the mark
‘POWER‟ – with the arrow logo and the mark „BATA‟. The standalone
‘POWER‟ mark registration for the device and the word, in respect of
footwear, dates back to 1975. Though, these marks may have lapsed due to
non-renewal and abandonment, etc., the evidentiary value of the same
cannot be ignored. They, at the very least, show adoption of the mark
‘POWER‟ and ‘POWER‟ derivative marks by the Plaintiff since 1971 i.e., 48
years ago. Subsequent registrations of the mark ‘POWER‟ show that the
word ‘POWER‟ is registered as a word mark, as a device mark, as a
combination mark and in various derivative forms such as ‘POWER
SPORTS‟, „POWER POINTS‟, „POWER ULTIMO‟, „POWER FOOTBED‟,
„POWER SPORTS FOOTWEAR‟, „POWER TUNNEL SYSTEM‟, „POWER
BODYLINE‟, etc. This shows that the mark ‘POWER‟ is not only being used
in isolation, but in conjunction with several words, depending on the
business and commercial needs of the Plaintiff. A perusal of the documents
filed by the Plaintiff also show the following:
a) That several oppositions have been filed by the Plaintiff to protect the
mark ‘POWER‟;
b) The oldest invoice on record is dated 29th September, 1988 for
footwear under the ‘POWER‟ mark;
c) The annual report of the Plaintiff company for the years 2017-18 in
respect of marks ‘POWER‟ reads as under:
For decades, Bata was synonymous with quality and
comfort. Now, the legendary shoe brand has been
bestowed with one more accolade - Stylishly Ahead.
The game-changing styles, the hottest fashion trends
and a matchless craftsmanship to boast of, the new
age Bata has it all. And this is being reflected in the
awe and admiration of its consumers; old and new.
To drive home this cool new image, Bata has teamed
up with India's young style icons - Smriti Mandhana,
the opener of the Indian Women's Cricket Team, as
used with the tagline ‘THE POWER OF REAL LEATHER‟ in 2011-12. The
list of pending trademark applications using the word ‘POWER‟ in class 25
shows that apart from the word ‘POWER RANGERS‟, that there are several
other registered trademarks and pending applications containing the word
‘POWER‟, some in a prominent manner and some in a not so prominent
manner. However, there is not a single footwear product sample or
photograph or advertisement with the word ‘POWER‟ filed by Defendant
No.2 to show third party use. The primary reliance by Defendant No.2 is on
the admissions by the Plaintiff in the Trademark Registry.
19. A perusal of the documents and pleadings show that the Plaintiff’s use
of the mark ‘POWER‟ is indisputably prior to that of Defendant No.2, by at
least four decades. The ‘POWER‟ range of products, along with the use of
the „POWER FLASH‟ device have established a reputation in the market,
owing to the extensive use, advertising and celebrity endorsements. The
‘POWER‟ mark has a sales turnover of approximately Rs.500 crores a year
with a large advertising/publicity budget.
20. On the other hand, the use of the mark ‘POWER FLEX‟ by the
Defendant No.2 is sketchy. The sales turnover of ‘POWER FLEX‟ range
products has not been given in the written statement. Barring the six or
seven advertisements in AMAR UJALA, there is no other major publicity to
the mark ‘POWER FLEX‟. The celebrity endorsements of Mr. Virat Kohli is
also for „RED CHIEF‟ products. The argument that ‘POWER FLEX‟ is
being used only with „RED CHIEF‟ is also not correct. Though, the mark
‘POWER FLEX‟ is not shown on the box of the product, it is seperately
printed in the inside sole of the shoe without the trademark „RED CHIEF‟.
21. The clear impression that the Court gets while looking at the
did not find the Appellant's goods in the market till the
first week of December 2007. Consequently, at this
stage we cannot draw the inference that the present
suit is barred by delay or laches. In any event, passing
off is a recurring cause of action and delay being a
defence in equity would not be available if the
Defendant's conduct is fraudulent - as is in the present
case. Consequently in the present facts, delay and so
called concurrent use, if any, cannot be a ground for
refusing interim injunction.”
22. Defendant No.2’s main brand is „RED CHIEF‟ and not ‘POWER‟ or
‘POWER FLEX‟. It has a range of other marks which it uses for its footwear
and ‘POWER FLEX‟ does not define the Defendant No.2’s product range.
The distinction sought to be drawn between sporting footwear and leather
footwear, is no distinction in the eyes of law. This is so because the
manufacturer of a product is entitled to a reasonable scope for expansion.
The Supreme Court in Laxmikant V. Patel v. Chetanbhai Shah and Anr.
(2002) 3 SCC 65 held as under:
“8. It is common in trade and business for a trader or
a businessman to adopt a name and/or mark under
which he would carry on his trade or business.
According to Kerly (Law of Trade Marks and Trade
Names, 12th Edn., para 16.49), the name under which a
business traders will almost always be a trade mark
(or if the business provides services, a service mark, or
both). Independently of questions of trade or service
mark, however, the name of a business (a trading
business or any other) will normally have attached to it
a goodwill that the courts will protect. An action for
passing-off will then lie wherever the defendant
company‟s name, or its intended name, is calculated
to deceive, and so to divert business from the plaintiff,
or to occasion a confusion between the two businesses.
23. After using the mark ‘POWER‟ for almost 48 years, it cannot be said
that the Plaintiff does not have a reasonable expectation of expansion into
leather goods. Moreover, permitting the Defendant No.2 to use the mark
‘POWER FLEX‟ today would also create a reasonable promise for
Defendant No.2 to expand the use of the mark ‘POWER FLEX‟ in the
sporting footwear. Thus, dissection of the product range, cannot be made so
minutely i.e. sporting footwear versus leather footwear. Broadly these
products fall under the class of footwear. It is a known fact that footwear
brands usually use their brands for accessories/clothing like T-shirts, shorts,
socks, belts, wallets, etc. Thus, in modern day usage, the brand is always
evolving and the product category cannot be cast in stone.
24. Moreover, while adopting the mark ‘POWER FLEX‟, it cannot even
remotely be believed that Defendant No.2 was unaware of the Plaintiff’s
brand. The presence of the Plaintiff’s „POWER‟ brand of footwear is quite
prominent and conspicuous. Defendant No.2 could have simply done a
search of the Trademark Registry, which would have revealed at least 25
marks of the Plaintiff with the mark ‘POWER‟. The adoption by Defendant
No.2 of the mark „POWER FLEX’, in such a situation, could be termed as
fraught with risk owing to the high standing of the ‘POWER‟ mark of the
Plaintiff.
25. Moreover, Defendant No.2 has itself applied for registration of the
mark ‘POWER FLEX‟ in the year 2009 and is completely estopped from
arguing that the word ‘POWER‟ is laudatory or a dictionary word and
cannot be monopolised. This is the settled position as per Procter and
Gamble Manufacturing (Tiajin) Co. Ltd. & Ors. v. Anchor Health &
Beauty Care Pvt. Ltd. (2014) 211 DLT 466 (DB) which followed Indian
Hotels Company Ltd. v. Jiva Institute of Vedic Science & Culture 2008
(37) PTC 468 (Del) and Automatic Electric Ltd. v. R.K. Dhawan 1999 (19)
PTC 81. The relevant observations of the Ld. Division Bench are set out
below:
“(xix) As far as the contention, of Automatic Electric
Ltd. (supra) having stood overruled by Marico
Limited (supra) is concerned, we have perused Indian
Hotels Company Ltd.(supra) and are unable to agree
that the reference therein to Automatic Electric Ltd. is
without affirming the same. It was the contention
in Indian Hotels Company Ltd. also that the word
“JIVA” therein was a descriptive word which could
not be protected as a trade mark. The Division Bench
however negated the said argument by holding that the
appellant therein having itself applied for registration
of “JIVA” as a trade mark, could not argue that the
mark was descriptive. Reference to Automatic Electric
Ltd. was made in support of the said reasoning.
Unfortunately, neither Automatic Electric
Ltd. nor Indian Hotels Company Ltd. were noticed in
the subsequent judgment of the Division Bench
in Marico Limited. We, at this interim stage are
inclined to go along with the affirmation by the
Division Bench in Indian Hotels Company Ltd. with the
view in Automatic Electric Ltd.”
27. Even if one considers the nature of the mark ‘POWER‟, it cannot be
held to be a descriptive mark. As the well-known author Mr. J. Thomas
McCarthy, in the treatise on `Trademarks and Unfair Competition’2, opines,
the question as to whether the mark is descriptive or suggestive, can be
based on the following tests:
a) Degree of imagination required to connect the mark with the
product; and
b) The competitor’s need to use the mark.
28. In the present case, the mere mention of the word ‘POWER‟ does not
direct any one immediately to shoes or to footwear. The imagination could
at best lead to products related to electricity, batteries or related products. It
1
J. Thomas McCarthy, “McCarthy on Trademarks and Unfair Competition”, Vol.2, Thomson West, 2003,
§11:1
2
J. Thomas McCarthy, “McCarthy on Trademarks and Unfair Competition”, Vol.2, Thomson West, 2003,
§11:67 & §11.69
3
Shorter Oxford English Dictionary, Volume 2, 5th Edn., 2003, page 2307.
of ‘POWER FLEX‟ branded goods, available with it. The Defendant has
placed on record a stock statement which shows the following stock:
“STOCK POSITION OF FOOTWEAR UNDER
“REDCHIEF POWERFLEX” TRADEMARK AS ON
13.03.2019 AT EXCLUSIVE STORES &
WAREHOUSE OF THE COMPANY ALSO IN
TRANSIT
1) IN WAREHOUSE AND EXCLUSIVE
STORE :384185 PAIRS
(sic. 38415 pairs)
2) IN TRANSIT :1805 PAIRS”
33. Vide order dated 27th March, 2019, this Court had already permitted
the Defendant to sell the existing stock, subject to certain conditions. The
said conditions are again reiterated in this order.
34. Further, while Defendant No.2 would not be permitted to use the
mark ‘POWER FLEX‟ as a trademark, the English language use of the word
‘POWER‟ as part of an advertising slogan or as in tagline ‘THE POWER OF
REAL LEATHER‟ cannot be injuncted. The case laws cited by both the sides
are well settled. The analysis at the interim stage is primarily on facts, as
judgments have been cited on both sides which lay down settled positions of
law. Thus, the two applications are disposed of with the following
directions:
a) Defendant No.2 is restrained from using the mark/word ‘POWER‟
in respect of footwear, clothing and accessories and other related
products including the mark ‘POWER FLEX‟ or any other mark
containing the word ‘POWER‟ or a combination thereof;
b) The use of the tagline ‘THE POWER OF REAL LEATHER‟ as part
of an advertising slogan or a tagline is permitted, however, no
PRATHIBA M. SINGH
JUDGE
APRIL 16, 2019
Rahul