High Court of Karnataka Upholds Injunction Against Defendant in Trademark Infringement Case — 'Cothagiri' Mark Deceptively Similar to 'Cothas'. Court Restrains Defendant from Using Mark 'Cothagiri' for Coffee Products, Finding Prima Facie Case of Passing Off Under Trade Marks Act, 1999.

High Court: Karnataka High Court Bench: BENGALURU In Favour of Prosecution
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Case Note & Summary

The case involves a trademark dispute between M/s. Cothas Coffee Co. (plaintiff/respondent) and M/s. Avighna Coffee Pvt. Ltd. (defendant/appellant). The plaintiff, a registered partnership firm, claimed to be the prior user and registered proprietor of the trademark 'Cothas' for coffee and related products since 1995. The defendant adopted the mark 'cothagiri' for its coffee products, which the plaintiff alleged was deceptively similar to 'Cothas'. The plaintiff filed a suit for permanent injunction and obtained an ex parte ad interim injunction. The trial court, after hearing both sides, allowed the plaintiff's applications under Order XXXIX Rules 1 & 2 CPC and restrained the defendant from using the mark 'cothagiri' or any other deceptively similar mark. The defendant appealed against this order, and the plaintiff filed a cross-objection seeking to include the mark 'cothagiri' in any language. The High Court examined the evidence, including the plaintiff's prior use and registration, and the defendant's knowledge of the plaintiff's mark. The court found that the marks were phonetically and structurally similar, and the defendant's adoption was not honest. The court held that the plaintiff had made out a prima facie case of passing off, the balance of convenience was in favor of the plaintiff, and the plaintiff would suffer irreparable loss if the injunction was not granted. The High Court dismissed the appeal and allowed the cross-objection in part, modifying the injunction to restrain the defendant from using the mark 'cothagiri' in any language.

Headnote

A) Intellectual Property - Trademark Infringement - Passing Off - Deceptive Similarity - Trade Marks Act, 1999, Sections 2(1)(zb), 2(1)(m), 29, 134 - The plaintiff, a partnership firm, claimed prior use and registration of the trademark 'Cothas' for coffee products. The defendant adopted the mark 'cothagiri' for similar goods. The court held that the marks are deceptively similar and the defendant's adoption was not honest, as the defendant was aware of the plaintiff's mark. The court found a prima facie case of passing off and granted an interim injunction. (Paras 1-20)

B) Civil Procedure - Interim Injunction - Prima Facie Case - Balance of Convenience - Irreparable Loss - Code of Civil Procedure, 1908, Order XXXIX Rules 1 & 2 - The court considered the principles for grant of temporary injunction. It held that the plaintiff had established a strong prima facie case, the balance of convenience was in favor of the plaintiff, and the plaintiff would suffer irreparable loss if the injunction was not granted. The defendant's appeal was dismissed and the cross-objection was allowed in part to modify the injunction to include the mark 'cothagiri' in any language. (Paras 21-30)

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Issue of Consideration

Whether the plaintiff has made out a prima facie case for grant of interim injunction restraining the defendant from using the trademark 'cothagiri' or any deceptively similar mark in relation to coffee products, and whether the balance of convenience lies in favor of the plaintiff.

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Final Decision

The High Court dismissed the appeal (MFA No.2170/2016) and allowed the cross-objection (MFA CROB No.64/2016) in part, modifying the trial court's order to restrain the defendant from using the trademark 'cothagiri' or any other mark deceptively similar in any language.

Law Points

  • Trademark infringement
  • passing off
  • deceptive similarity
  • interim injunction
  • balance of convenience
  • irreparable loss
  • Order XXXIX Rules 1 & 2 CPC
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Case Details

2016 LawText (KAR) (09) 16

Miscellaneous First Appeal No.2170/2016 (IPR) C/W MFA.CROB. No.64/2016

2016-09-14

P.S. Dinesh Kumar

Sri. Aditya Sondhi, Sr. Counsel for Smt. B.V. Nidhishree (for appellant); Sri. S. Sreevatsa, Sr. Counsel for Sri. Thomas Vellapally (for respondent)

M/s. Avighna Coffee Pvt. Ltd.

M/s. Cothas Coffee Co.

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Nature of Litigation

Civil suit for permanent injunction restraining trademark infringement and passing off.

Remedy Sought

Plaintiff sought interim injunction restraining defendant from using the trademark 'cothagiri' or any deceptively similar mark.

Filing Reason

Defendant adopted the mark 'cothagiri' for coffee products, which plaintiff alleged was deceptively similar to its registered trademark 'Cothas'.

Previous Decisions

Trial court allowed IAs No.1 & 2 filed under Order XXXIX Rules 1 & 2 CPC and rejected IA No.3 filed under Order XXXIX Rule 4 CPC, granting interim injunction against defendant.

Issues

Whether the plaintiff has a prima facie case for grant of interim injunction? Whether the balance of convenience lies in favor of the plaintiff? Whether the plaintiff would suffer irreparable loss if injunction is not granted?

Submissions/Arguments

Appellant/defendant argued that the mark 'cothagiri' is not deceptively similar to 'Cothas' and that the plaintiff has no exclusive right over the word 'Cothas'. Respondent/plaintiff argued that it is the prior user and registered proprietor of the mark 'Cothas' and that the defendant's adoption of 'cothagiri' is dishonest and likely to cause confusion.

Ratio Decidendi

In an application for interim injunction, the court must consider whether the plaintiff has a prima facie case, whether the balance of convenience is in favor of the plaintiff, and whether the plaintiff would suffer irreparable loss if the injunction is not granted. In this case, the plaintiff established prior use and registration of the mark 'Cothas', and the defendant's adoption of 'cothagiri' was found to be deceptively similar and not honest, thus satisfying all three conditions.

Judgment Excerpts

The plaintiff is the prior user and registered proprietor of the trademark 'Cothas'. The marks 'Cothas' and 'cothagiri' are phonetically and structurally similar. The defendant's adoption of the mark 'cothagiri' is not honest. The plaintiff has made out a prima facie case for grant of injunction. The balance of convenience is in favor of the plaintiff. The plaintiff would suffer irreparable loss if the injunction is not granted.

Procedural History

The plaintiff filed O.S. No.4047/2015 before the XVIII Additional City Civil and Sessions Judge, Bengaluru, seeking permanent injunction. The trial court granted ex parte ad interim injunction. After hearing both sides, the trial court allowed IAs No.1 & 2 under Order XXXIX Rules 1 & 2 CPC and rejected IA No.3 under Order XXXIX Rule 4 CPC, vide order dated 20.02.2016. The defendant appealed against this order in MFA No.2170/2016, and the plaintiff filed a cross-objection in MFA CROB No.64/2016.

Acts & Sections

  • Code of Civil Procedure, 1908: Order XXXIX Rules 1 & 2, Order XXXIX Rule 4, Order XLIII Rule 1(r), Order XLI Rule 22, Section 151
  • Trade Marks Act, 1999: Sections 2(1)(zb), 2(1)(m), 29, 134
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