2008 (2) TMI 931 - HC - Companies Law

Summary

Issues Involved:
1. Whether the use of the trademark/logo 'LNT' by the defendant is likely to create confusion and is not bonafide.
2. Whether the defendant should be allowed to use the trademark/logo 'LNT' in an extended form.
3. Whether the dissimilarity in some of the products in which the parties trade affects the grant or refusal of injunction.

Summary:

Issue 1: Whether the use of the trademark/logo 'LNT' by the defendant is likely to create confusion and is not bonafide.
The plaintiff, Larsen and Toubro Ltd. ('LandT'), engaged in diverse business activities, claimed that the abbreviation 'LandT' had acquired a secondary meaning associating it exclusively with the plaintiff. The plaintiff alleged that the defendant's use of 'LNT' and 'ELENTE' for electrical goods was intended to capitalize on the plaintiff's goodwill. The learned Single Judge found that the plaintiff is a market leader, the abbreviation 'LandT' is well-known, and its use by the defendant was not bonafide. The Judge noted that the defendant's use of 'LNT' was likely to create confusion among consumers.

Issue 2: Whether the defendant should be allowed to use the trademark/logo 'LNT' in an extended form.
The learned Single Judge allowed the defendant to use 'LNT/ELENTE-Lachmi Narain Traders' to avoid confusion. However, the appellant argued that this conflicted with the finding that 'LandT' or 'ELENTE' were associated with the plaintiff's goods. The Court agreed with the appellant, stating that allowing the defendant to use 'LNT/ELENTE' even in an extended form would continue to create confusion. The Court held that the use of 'LNT/ELENTE' was not permissible, and the learned Single Judge's decision to allow it was a mistake that needed correction.

Issue 3: Whether the dissimilarity in some of the products in which the parties trade affects the grant or refusal of injunction.
The Court rejected the argument that the dissimilarity in products marketed by the defendant justified the use of 'LNT/ELENTE'. Citing precedents, the Court emphasized that the likelihood of confusion or deception among consumers and the resultant damage to the plaintiff were the primary considerations. The Court held that the dissimilarity in products did not make a material difference in granting the injunction.

Conclusion:
The appeal was allowed, and the order of the learned Single Judge was modified to make the ex parte ad interim order dated 27th June 2003 absolute. The defendants were restrained from using the trademark/names 'LNT/ELENTE' or any deceptively similar name in relation to any of its products. The defendants were, however, allowed to use 'Lachmi Narain Trades' only in its full and extended form as a trademark/logo for marketing its goods. The cross-objections filed by the defendant were dismissed.