2002 (9) TMI 776 - HC - Companies Law

Summary

Issues Involved:
1. Infringement of the trade mark 'ATLAS' by the defendants.
2. Likelihood of confusion caused by the defendants' use of the trade mark 'House of ATLAS'.
3. Plaintiff's entitlement to an interim injunction.
4. Acquiescence and delay in the plaintiff's action against the defendants' corporate name.

Detailed Analysis:

1. Infringement of the trade mark 'ATLAS' by the defendants:
The plaintiff, a public limited company, sought a permanent injunction to restrain the defendants from using the trade mark 'ATLAS' or any deceptively similar mark. The plaintiff claimed to be the registered proprietor of the trade mark 'ATLAS' since 1952, enjoying a substantial market share and reputation. The plaintiff alleged that the defendants had introduced bicycles under the trade mark 'House of ATLAS', intending to deceive the public and pass off their goods as those of the plaintiff.

2. Likelihood of confusion caused by the defendants' use of the trade mark 'House of ATLAS':
The court noted that the fundamental principle is that a person shall not trade under a name closely resembling another's as to be mistaken for it by the public. The court found that comparing the two trade names as a whole, there was a deceptive resemblance between the plaintiff's mark 'ATLAS' and the defendants' mark 'House of ATLAS'. The court opined that the use of the word 'Atlas' by the first defendant, even in conjunction with the words 'House of', was likely to cause confusion or deception in the mind of the purchaser, thus constituting infringement of the plaintiff's trade mark 'Atlas'.

3. Plaintiff's entitlement to an interim injunction:
The court considered whether the plaintiff was entitled to an interim injunction restraining the defendants from using the trade mark 'House of ATLAS'. The court held that the plaintiff had established a prima facie case of infringement, and the balance of convenience lay in favor of the plaintiff. Consequently, the court restrained the defendants from using the trade mark 'House of Atlas' or any other mark deceptively similar to the plaintiff's trade mark 'Atlas' in respect of bicycles and bicycle parts until the disposal of the suit.

4. Acquiescence and delay in the plaintiff's action against the defendants' corporate name:
The defendants argued that the plaintiff had acquiesced to their use of the trade mark and corporate name, citing a memorandum of understanding (MoU) between the Kapur family members, which allowed the use of the 'ATLAS' brand. The court noted that delay or acquiescence might not be a defense to a suit for infringement of a trade mark, but it could be relevant in considering an interim injunction. The court found that the first defendant had been incorporated in 1995, and other family members were also using similar corporate names. The court held that the plaintiff's delay in initiating action for restraining the first defendant from using the corporate name was fatal to the claim for an interim injunction. The court observed that granting an interim injunction at this stage would cause serious prejudice to the first defendant, potentially bringing its business to a halt.

Conclusion:
The court restrained the defendants from using the trade mark 'House of Atlas' or any deceptively similar mark in respect of bicycles and bicycle parts until the disposal of the suit. However, the court did not grant an injunction against the use of the corporate name by the first defendant. The application was disposed of with no order as to costs.