High Court of Karnataka Considers Appeal Against Discretionary Order Refusing Interim Injunction in Passing Off Suit — Visual Wrapper Similarity and Ordinary Purchaser Test Examined. Court Examines Whether Emphasis on Dissimilarities Rather Than Similarities Amounted to Error of Principle.

High Court: Karnataka High Court Bench: BENGALURU
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Case Note & Summary

The present appeal arose from a suit for passing off and copyright infringement filed by ITC Limited (plaintiff) against CG Foods (India) Private Limited (defendant) in respect of the wrapper designs used for their instant noodle products. The plaintiff, under its brand Sunfeast YiPPee!, marketed a 'Magic Masala' variant with a distinctive orange-red colour scheme and get-up. The defendant sold its 'Wai Wai Xpress Noodles Majedar Masala' in a wrapper that the plaintiff alleged was deceptively similar to its own. The plaintiff had been the prior user of the design since 2010. The defendant did not dispute prior use but contended that the brand names were entirely different and that the ordinary purchaser would rely on verbal marks rather than colour scheme or get-up to identify the product. The plaintiff filed applications for temporary injunction seeking to restrain the defendant from passing off and from copyright infringement. The trial court granted an ex-parte interim order, but subsequently, by a common order dated 22.06.2021, vacated the ex-parte order and dismissed the plaintiff's injunction applications, allowing the defendant's application for vacation. The plaintiff appealed under Section 13(1A) of the Commercial Courts Act, 2015 read with Order XLIII Rule 1(r) of the Code of Civil Procedure, 1908. The parties advanced extensive arguments on the principles of passing off, with the plaintiff emphasizing that the test is one of overall similarity and the impression on an unwary purchaser of a low-involvement product like noodles, while the defendant stressed the primacy of the brand name and the need to consider dissimilarities alongside similarities. The matter was heard and reserved for judgment.

Issue of Consideration

Whether the trial court correctly refused interim injunction and vacated ex-parte order in a suit for passing off and copyright infringement, particularly on the ground of deceptive similarity of the get-up of the noodle product wrappers.

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Law Points

  • passing off
  • deceptive similarity
  • get-up
  • ordinary purchaser test
  • overall visual appearance
  • brand name significance
  • colour scheme distinctiveness
  • composite mark
  • likelihood of confusion
  • interim injunction
  • discretionary order
  • appellate court standard of review
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Case Details

2021 LawText (KAR) (09) 37

Commercial Appeal No. 105/2021

2021-09-28

Aravind Kumar, Pradeep Singh Yerur

K.G. Raghavan, Dharmendra Chatur, Dhyan Chinappa, Lomesh Kiran N, Abhinay V, Tejas

ITC Limited

CG Foods (India) Private Limited

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Nature of Litigation

Suit for passing off and copyright infringement relating to the wrapper design of instant noodle products.

Remedy Sought

Plaintiff sought temporary injunction to restrain defendant from passing off its goods and infringing copyright in the wrapper design, and for vacation of ex-parte interim order.

Filing Reason

Plaintiff alleged that defendant's wrapper for its noodle product 'Wai Wai Xpress Noodles Majedar Masala' was deceptively similar to plaintiff's wrapper for 'Sunfeast Yippee Magic Masala', causing confusion and damage to plaintiff's goodwill.

Previous Decisions

Ex-parte interim injunction was initially granted in favor of plaintiff, but later vacated by the trial court, which also refused to grant temporary injunction on the plaintiff's applications, leading to the present appeal.

Issues

Whether the trial court erred in refusing interim injunction in a suit for passing off and copyright infringement based on the assessment of deceptive similarity of the noodle wrappers. Whether the trial court committed an error of principle by emphasizing dissimilarities rather than similarities and the overall effect on the ordinary purchaser. Whether the plaintiff established a prima facie case of passing off and copyright infringement to warrant interim relief.

Submissions/Arguments

Plaintiff contended that the ordinary purchaser of noodles, a low-involvement product, would be misled by the overall visual appearance of the competing wrappers, as the similarities in get-up were sufficient to deceive. The trial court erred by focusing on dissimilarities instead of the net impression of similarity. Plaintiff argued that the class of consumers included persons of all age groups, and the test should be that of an unwary buyer of average intelligence and imperfect recollection. Defendant contended that the brand name was the primary distinguishing feature, and since the brand names 'YiPPee!' and 'Wai Wai' were entirely different, there was no likelihood of confusion, despite any similarities in colour scheme or get-up. Defendant argued that the plaintiff could not claim monopoly over common trade features such as the noodle bowl image or the orange-red colour scheme, which were descriptive and did not acquire distinctiveness. Defendant submitted that the competing wrappers, taken as a whole, contained prominent dissimilarities that offset any similarities, and the trial court's evaluation was correct.

Judgment Excerpts

The plaintiff alleges that the wrapper adopted by the defendant for packaging, one of its white-noodles product, ‘WAI WAI Xpress Noodles Majedar Masala” is deceptively similar or nearly identical to its (plaintiff's) wrapper used for packaging ‘Sunfeast Yippee Magic Masala’ brand of noodles. His principal contention is that, an ordinary purchaser would be misled into purchasing a pack of ‘Wai Wai X-Press Majedar Masala’ noodles instead of their own ‘Sunfeast Yippee Magic Masala’ brand of noodles on account of the similarity in the general appearance of the competing wrappers. He contends that the test for estimating the likelihood of deception, is a combination of different factors. Each of the factors must be put to scale for arriving at a nearly accurate estimate of the ‘likelihood of deception’. He would contend that the most important feature in a product of this kind, containing a ‘composite mark’ (includes get up, visual marks, labels, symbols, logos, devices and verbal marks) is the ‘brand name’ or generally speaking, the ‘verbal mark’.

Procedural History

The plaintiff filed Commercial O.S. No. 177/2021 before the LXXXIV Additional City Civil and Sessions Judge, Commercial Court, Bengaluru, along with I.A. Nos. I and II under Order XXXIX Rules 1 and 2 CPC seeking temporary injunction for passing off and copyright infringement respectively. An ex-parte interim order was granted. The defendant filed I.A. No. III under Order XXXIX Rule 4 CPC to vacate the ex-parte order. By common order dated 22.06.2021, the trial court allowed I.A. III and dismissed I.A. I and I.A. II, thereby vacating the interim relief. The plaintiff then filed the present Commercial Appeal under Section 13(1A) of the Commercial Courts Act, 2015 read with Order XLIII Rule 1(r) CPC.

Acts & Sections

  • Commercial Courts Act, 2015: Section 13(1A)
  • Code of Civil Procedure, 1908: Section 104, Order XLIII Rule 1(r), Order XXXIX Rules 1 and 2, Order XXXIX Rule 4, Section 151
  • Companies Act, 2013: Not specified
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