2005 (11) TMI 508 - HC - Companies Law

Summary

Issues Involved:
1. Permanent injunction for infringement of trademark and copyright.
2. Passing off, delivery up, rendition of accounts.
3. Damages and compensation.
4. Destruction of infringing goods.
5. Costs of the proceedings.

Issue-Wise Detailed Analysis:

1. Permanent Injunction for Infringement of Trademark and Copyright:
The plaintiff, a joint venture between Hero Group and Honda Motors Company, filed a suit against the defendant for infringing on their trademark "HERO HONDA" and associated logo. The plaintiff has been using the trademark since 1985 and has registered it under the relevant trademark laws. The court found that the plaintiff has exclusive rights to use the trademark and logo, and the defendant was counterfeiting the plaintiff's products, thus infringing on these rights. Consequently, the court granted a permanent injunction restraining the defendant from using the trademark "HERO HONDA" or any deceptively similar mark.

2. Passing Off, Delivery Up, Rendition of Accounts:
The plaintiff argued that the defendant's actions led to passing off inferior products as those of the plaintiff, causing loss of profits and damage to the brand's reputation. The court agreed with the plaintiff's claims and ruled that the defendant's actions constituted passing off. The court ordered the delivery up of all infringing products to the plaintiff for destruction to prevent further damage to the plaintiff's brand.

3. Damages and Compensation:
The plaintiff sought damages for loss of reputation and business due to the defendant's infringing activities. The court noted that the defendant had deliberately stayed away from the proceedings, which hindered an enquiry into the accounts for determining exact damages. However, the court awarded token damages of Rs. 5 lakhs, referencing similar cases where damages were awarded in the absence of specific evidence. The court emphasized that punitive damages are necessary to deter such unlawful activities and to compensate for the harm caused to the plaintiff's reputation and business.

4. Destruction of Infringing Goods:
The court noted that the seized goods, which were released on superdari to the defendant, were liable to be destroyed. The plaintiff was granted a decree for the delivery up of all infringing products so that they could be destroyed, thereby preventing further distribution of counterfeit goods.

5. Costs of the Proceedings:
The court ruled that the plaintiff was entitled to the costs of the present proceedings. This decision was based on the principle that a defendant who chooses to evade court proceedings should not benefit from such actions and must bear the consequences, including the costs incurred by the plaintiff in litigation.

Conclusion:
The court passed a decree for permanent injunction against the defendant, restraining them from using the trademark "HERO HONDA" and logo. The defendant was ordered to hand over the seized goods for destruction. The court awarded Rs. 5 lakhs in damages and granted the plaintiff the costs of the proceedings. The decree-sheet was to be drawn up upon the plaintiff paying the deficient court fee as per the court's earlier judgment.