Bombay High Court Allows Appeal in Trade Mark Infringement Case — Continuous Prior Use Not Established by Respondent. Section 34 of Trade Marks Act, 1999 requires continuous use from a date prior to registration; gap in evidence of use after 2013 defeats claim of prior user.

High Court: Bombay High Court
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Case Note & Summary

The appellant, Leben Life Science Private Limited, filed a suit for permanent injunction against the respondent, Jarun Pharmaceuticals Private Limited, alleging infringement of its registered trade mark 'Rben' by the respondent's use of deceptively similar marks 'Reben-20' and 'Reben-DSR'. The appellant's predecessor adopted the mark in 2013 and obtained registration. The appellant claimed continuous, exclusive use since assignment. The respondent claimed prior use since 2008. The trial court dismissed the temporary injunction application. On appeal, the High Court examined whether the respondent had established continuous prior use under Section 34 of the Trade Marks Act, 1999. The court noted that the respondent failed to produce invoices and bills for 2013, indicating a gap in use. Relying on Kamat Hotels (India) Ltd. v. Royal Orchid Hotels Ltd, the court held that continuous use must be proved, not just sporadic use. The court also referred to Neon Laboratories Ltd. v. Medical Technologies Ltd. for the principle that prior user must be continuous. The court found that the respondent did not satisfy the conditions for protection under Section 34. The appellant made out a prima facie case, balance of convenience was in its favor, and irreparable loss would ensue. The court allowed the appeal, set aside the trial court's order, and granted temporary injunction restraining the respondent from using the impugned marks until disposal of the suit. The respondent was also directed to maintain accounts of profits earned from the use of the marks.

Headnote

A) Trade Marks - Continuous Prior Use - Section 34 Trade Marks Act, 1999 - The respondent claimed prior use of the mark 'Reben-20' and 'Reben-DSR' but failed to produce invoices and bills for the year 2013, showing a gap in continuous use. The court held that mere adoption of a mark is not sufficient; continuous use must be established both before and after the date of registration. The respondent did not satisfy the requirement of continuous use, and thus the temporary injunction was granted in favor of the appellant. (Paras 3-12)

B) Trade Marks - Temporary Injunction - Prima Facie Case - The appellant, being the registered proprietor of the trade mark 'Rben', made out a prima facie case of infringement. The balance of convenience was in favor of the appellant as the respondent failed to demonstrate continuous prior use. Irreparable loss would be caused to the appellant if injunction was not granted. (Paras 12-13)

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Issue of Consideration

Whether the respondent has established continuous prior use of the trade mark 'Reben-20' and 'Reben-DSR' from a date prior to the registration of the appellant's trade mark 'Rben' so as to avail protection under Section 34 of the Trade Marks Act, 1999.

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Final Decision

The appeal is allowed. The order dated 26.06.2023 passed by the District Judge, Akola, is set aside. The respondent is restrained from using the trade marks 'Reben-20' and 'Reben-DSR' or any other deceptively similar mark till the disposal of the suit. The respondent is directed to maintain accounts of profits earned from the use of the said marks.

Law Points

  • Continuous use
  • Prior user
  • Section 34 Trade Marks Act 1999
  • Temporary injunction
  • Burden of proof
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Case Details

2024 LawText (BOM) (8) 297

Appeal Against Order No. 66 of 2023

2024-08-29

M. W. Chandwani

Mr A. S. Manohar for Appellant; Mr H. Tolia, Senior Advocate a/b Mr N. D. Khamborkar and Mr B. Choksi for Respondent

Leben Life Science Private Limited

Jarun Pharmaceuticals Private Limited

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Nature of Litigation

Appeal against order rejecting temporary injunction in a trade mark infringement suit.

Remedy Sought

The appellant sought temporary injunction restraining the respondent from using the trade marks 'Reben-20' and 'Reben-DSR' pending disposal of the suit.

Filing Reason

The appellant alleged that the respondent's marks were deceptively similar to its registered trade mark 'Rben' and that the respondent had not continuously used the marks.

Previous Decisions

The District Judge, Akola, dismissed the application for temporary injunction in Trade Mark Suit No.1 of 2023 on 26.06.2023.

Issues

Whether the respondent has established continuous prior use of the trade mark 'Reben-20' and 'Reben-DSR' from a date prior to the registration of the appellant's trade mark 'Rben' so as to avail protection under Section 34 of the Trade Marks Act, 1999. Whether the appellant is entitled to a temporary injunction restraining the respondent from using the impugned trade marks.

Submissions/Arguments

Appellant argued that the respondent failed to prove continuous use of the trade mark, especially after 2013, and that mere adoption is not sufficient. Relied on Kamat Hotels and Abdul Rasul. Respondent argued that it had used the mark since 2008 and produced sales figures and advertisement expenses, satisfying the conditions of Section 34. Relied on Neon Laboratories.

Ratio Decidendi

For claiming protection under Section 34 of the Trade Marks Act, 1999, a person must prove continuous use of the trade mark from a date prior to the registration of the proprietor's mark. A gap in evidence of use, such as missing invoices for a particular year, indicates lack of continuous use and disentitles the claimant to the defense of prior user.

Judgment Excerpts

The expression 'continuously used that trade mark' by Parliament has a specific connotation. The concept of continuous use emphasizes that a right vests in a person when he puts his goods with the mark in the market. A use which is continuous is distinct from a use which is stray, isolated or disjointed. Section 34 of the Trade Marks Act, 1999 palpably holds that a proprietor of a trade mark does not have the right to prevent the use by another party of an identical or similar mark where that user commenced prior to the user or date of registration of the proprietor.

Procedural History

The appellant filed Trade Mark Suit No.1 of 2023 before the District Judge, Akola, seeking permanent injunction and damages. The appellant also filed an application for temporary injunction. The District Judge dismissed the application on 26.06.2023. The appellant filed the present appeal under Section 104 of the Code of Civil Procedure, 1908 against that order.

Acts & Sections

  • Trade Marks Act, 1999: Section 34
  • Code of Civil Procedure, 1908: Section 104
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