Bombay High Court Grants Injunction Against Passing Off and Trade Mark Infringement of 'CARTER'S BLUE' Mark. Defendants' Use of Deceptively Similar Names Despite Conducting Agreement and Registration Constitutes Passing Off.

High Court: Bombay High Court Bench: BOMBAY In Favour of Prosecution
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Case Note & Summary

The plaintiff, Mehboob Khan, sole proprietor of 'Carter's Blue' restaurant, filed a suit for trade mark infringement and passing off against the defendants, who were using similar names such as 'Mezbaan Carter's Blue', 'The Carter's Blue', and 'Mehboob Carter's Blue' for their restaurants. The plaintiff had registered the mark 'CARTER'S BLUE' in Class 43 (as of 16th June 2011) and Class 42 (as of 18th May 2013). The dispute arose from a Conducting Agreement dated 1st April 2008 between the plaintiff and the original 1st defendant, Firoz Qureshi, which allowed the plaintiff to run a restaurant at premises owned by the defendant. The plaintiff argued that the defendants' use of deceptively similar marks constituted infringement and passing off. The defendants contended that they had a right to use the mark based on the Conducting Agreement and that the plaintiff's registration was invalid. The court, after considering the submissions, found that the plaintiff had made out a strong prima facie case. The Conducting Agreement did not grant any trade mark rights to the defendants. The balance of convenience was in favor of the plaintiff, and irreparable loss would be caused if the injunction was not granted. The court noted that the defendants had changed their names after an interim order, indicating an attempt to circumvent the injunction. The court allowed the notice of motion and granted an injunction restraining the defendants from using the mark 'CARTER'S BLUE' or any deceptively similar mark. The court also directed the defendants to change their restaurant names and remove any signage using the impugned marks within four weeks.

Headnote

A) Trade Marks - Infringement and Passing Off - Registered Proprietor - The plaintiff, registered proprietor of 'CARTER'S BLUE' mark in Classes 43 and 42, sought injunction against defendants using similar marks like 'Mezbaan Carter's Blue', 'The Carter's Blue', and 'Mehboob Carter's Blue' for restaurants. The court held that the plaintiff had made out a strong prima facie case of infringement and passing off, as the defendants' marks were deceptively similar and the Conducting Agreement did not confer any right to use the mark after termination. (Paras 1-22)

B) Civil Procedure - Interim Injunction - Balance of Convenience - The court found that the balance of convenience was in favor of the plaintiff, as the defendants' continued use would cause irreparable harm to the plaintiff's goodwill and reputation. The defendants' conduct in changing names after the interim order indicated an attempt to circumvent the injunction. (Paras 23-30)

C) Contract Law - Conducting Agreement - Interpretation - The Conducting Agreement dated 1st April 2008 between the plaintiff and the original 1st defendant did not grant any proprietary interest in the trade mark to the defendants. The agreement was for conducting the restaurant business, and the mark remained the plaintiff's property. The defendants' reliance on the agreement to justify use of the mark was rejected. (Paras 3-10)

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Issue of Consideration

Whether the plaintiff is entitled to an interim injunction restraining the defendants from using the mark 'CARTER'S BLUE' or any deceptively similar mark in respect of restaurant services, pending the suit.

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Final Decision

Notice of Motion allowed. Defendants restrained from using the mark 'CARTER'S BLUE' or any deceptively similar mark. Defendants directed to change their restaurant names and remove signage within four weeks.

Law Points

  • Trade mark infringement
  • passing off
  • interim injunction
  • registered proprietor
  • conducting agreement
  • deceptive similarity
  • balance of convenience
  • prima facie case
  • irreparable loss
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Case Details

2016:BHC-OS:7610

Notice of Motion No.144 of 2015 in Suit No.38 of 2015

2016-06-16

G.S. Patel, J.

2016:BHC-OS:7610

Dr. V.V. Tulzapurkar, Senior Advocate with Mr. Vinod Bhagat, Mr. Dhiren Karania i/b G.S. Hegde and V.A. Bhagat for the Plaintiff; Mr. Aseem Naphade with Mr. A.P. Singh, Mr. Kushal Patel, i/b S.K. Srivastava and Company for the Defendants

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Nature of Litigation

Civil suit for trade mark infringement and passing off

Remedy Sought

Interim injunction restraining defendants from using the mark 'CARTER'S BLUE' or any deceptively similar mark

Filing Reason

Defendants using deceptively similar names for their restaurants, causing confusion and dilution of plaintiff's registered trade mark

Previous Decisions

Plaintiff obtained an interim order on 15th September 2014, which was not disturbed in appeal

Issues

Whether the plaintiff has a prima facie case for trade mark infringement and passing off Whether the balance of convenience lies in favor of granting an interim injunction Whether the Conducting Agreement confers any right on the defendants to use the plaintiff's trade mark

Submissions/Arguments

Plaintiff: Registered proprietor of 'CARTER'S BLUE' mark; defendants' use of similar marks constitutes infringement and passing off; Conducting Agreement does not grant trade mark rights. Defendants: Conducting Agreement allows use of the mark; plaintiff's registration is invalid; no deceptive similarity.

Ratio Decidendi

The plaintiff, as registered proprietor of the trade mark 'CARTER'S BLUE', has a prima facie case of infringement and passing off. The Conducting Agreement does not confer any right to use the mark. Balance of convenience favors the plaintiff, and irreparable loss would ensue without injunction.

Judgment Excerpts

The Plaintiff is the registered proprietor of a trade mark 'CARTER'S BLUE' in Class 43 (as of 16th June 2011) and Class 42 (as of 18th May 2013). The Defendants’ subsequent conduct does not provide any answer to the Plaintiff’s case either as first brought or as it now stands after an amendment. The Conducting Agreement does not grant any proprietary interest in the trade mark to the defendants.

Procedural History

Plaintiff filed Suit No.38 of 2015 for trade mark infringement and passing off. On 15th September 2014, an interim order was obtained after notice, which was not disturbed in appeal. The present Notice of Motion No.144 of 2015 was heard for final disposal.

Acts & Sections

  • Trade Marks Act, 1999:
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High Court Bombay High Court Grants Injunction Against Passing Off and Trade Mark Infringement of 'CARTER'S BLUE' Mark. Defendants' Use of Deceptively Similar Names Despite Conducting Agreement and Registration Constitutes Passing Off.
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