Bombay High Court Considers Interim Injunction Application in 'AirTel' Trademark Dispute Between Telecom and Liquor Companies. Plaintiffs Allege Passing Off and Copyright Infringement Against Defendants Using Identical Mark on Alcoholic Beverages.

High Court: Bombay High Court Bench: BOMBAY
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Case Note & Summary

The plaintiffs, a leading telecommunications company providing mobile services under the brand 'AirTel', filed a suit against the defendants, a liquor company, alleging passing off and copyright infringement. The plaintiffs claimed to have adopted the word mark 'AirTel' in 1994 and a distinctive label with specific color combination in 2002, and had acquired a super brand reputation. In September 2003, they discovered that the defendants were using an identical word mark 'AirTel' and a similar label on alcoholic beverages. The plaintiffs sought an interim injunction to restrain the defendants from using the mark and label, and for appointment of a court receiver to seize infringing goods. The defendants contested, arguing that their goods were entirely different and there was no likelihood of confusion. They also contended that the mark was conceived by defendant no.2 and assigned to defendant no.1, and that the plaintiff had no exclusive right as others used similar marks. The plaintiffs argued that the defendants' adoption was dishonest and that copyright in the artistic work was infringed regardless of the goods' nature. The court's final order on the application is not contained in the provided text.

Issue of Consideration

NOTICE OF MOTION NO. 2685 OF 2003

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Case Details

2006 LawText (BOM) (03) 51

Notice of Motion No. 2685 of 2003 in Suit No. 2898 of 2003

2006-03-21

S.U. Kamdar, J.

2006:BHC-OS:3540

Virag Tulzapurkar, Amit Jamsandekar, Sindhu Shrivastav, Ms. Neha Phatak for plaintiffs; Salil Shah, Hemang Engineer, Ms. Avani Shah for defendants

Bharati Cellular Ltd & Anr.

Jai Distillers P.Ltd

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Nature of Litigation

Civil suit for passing off and copyright infringement, with an application for interim injunction.

Remedy Sought

Plaintiffs sought interim injunction restraining defendants from using the mark 'AirTel' and similar label on goods, and appointment of court receiver to seize infringing materials.

Filing Reason

Plaintiffs alleged that defendants dishonestly copied their mark and label to pass off their alcoholic beverages as associated with plaintiffs' telecom services, causing damage to goodwill and reputation.

Issues

Whether the use of an identical word mark and similar label on dissimilar goods (alcoholic beverages) constitutes passing off of the plaintiffs' telecom services. Whether the plaintiffs' copyright in the artistic work in the label is infringed irrespective of the dissimilarity of goods. Whether the plaintiffs' mark 'AirTel' has acquired super brand or universal brand status entitling it to protection across all classes of goods.

Submissions/Arguments

Plaintiffs argued that they are the prior user of the 'AirTel' mark and artistic label since 1994 and 2002 respectively, that the defendants' adoption is dishonest and the explanation concocted, and that copyright in the label is infringed regardless of the goods being different. Defendants argued that the goods are entirely different, there is no likelihood of confusion, thus no passing off; that defendant no.2 is the proprietor of the mark and assigned it to defendant no.1; and that the plaintiffs have no exclusive right as other parties also use similar marks.

Judgment Excerpts

The said word 'AirTel' was adopted by the owner of the said mark to suggest that the person who will use the said products, will enjoy it so well that he will feel like flying in air talking to the people. the goods are polls apart i.e. the plaintiff goods/business being telecommunication services and the goods of the defendant being selling of liquor and alcohol beverages, the question of any likelihood of any confusion or actual confusion would not arise

Procedural History

Plaintiffs filed Suit No. 2898 of 2003 along with Notice of Motion No. 2685 of 2003 seeking interim injunction. The matter was heard by the Bombay High Court.

Acts & Sections

  • Copyright Act, 1957: 14, 51, 55
  • Trade and Merchandise Marks Act, 1958:
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High Court Bombay High Court Considers Interim Injunction Application in 'AirTel' Trademark Dispute Between Telecom and Liquor Companies. Plaintiffs Allege Passing Off and Copyright Infringement Against Defendants Using Identical Mark on Alcoholic Beverages.
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