2012 (4) TMI 735 - HC - Indian Laws

Summary

Issues Involved:
1. Permanent injunction for restraining infringement of trademarks.
2. Passing off, dilution of goodwill, and unfair competition.
3. Rendition of accounts of profits/damages.
4. Delivery up against the defendant.

Summary:

Issue 1: Permanent Injunction for Restraining Infringement of Trademarks
The plaintiff filed a suit for permanent injunction to restrain the defendant from using the trademark "MBD" in relation to its school activities. The court issued summons and notice to the defendants on 24.12.2010 and restrained the defendant on 04.05.2011 from using the trademark "MBD" with clarification that the defendant could use the full name "Mata Basanti Devi" School. The defendant was proceeded ex parte as no appearance or written statement was filed.

Issue 2: Passing Off, Dilution of Goodwill, and Unfair Competition
The plaintiff provided extensive evidence through affidavits and documents demonstrating the long-standing and exclusive use of the "MBD" trademark since 1956. The plaintiff's group, known as the "MBD Group," has a significant presence in the publishing, hospitality, real estate, and online education sectors, with the "MBD" mark being a well-known identifier of their goods and services. The court found that the defendant's use of the "MBD" mark constituted infringement, passing off, and dilution of the plaintiff's goodwill, and was done with mala fide intentions to benefit from the plaintiff's established reputation.

Issue 3: Rendition of Accounts of Profits/Damages
The plaintiff sought damages for loss of reputation and business. The court noted that the defendant deliberately stayed away from proceedings, preventing an enquiry into the accounts for determination of damages. The court awarded damages of Rs. 5 lakhs based on the evidence provided by the plaintiff and referenced previous judgments supporting compensatory and punitive damages for trademark infringement.

Issue 4: Delivery Up Against the Defendant
The court confirmed the interim orders and decreed the suit in favor of the plaintiff, granting the reliefs sought in terms of para 33 (i), (ii), (iii) & (v) of the plaint, including costs and damages. The court ordered the defendant to cease using the "MBD" mark and awarded Rs. 5 lakhs in damages to the plaintiff.

Conclusion:
The court ruled in favor of the plaintiff, confirming the interim injunction, and awarded damages of Rs. 5 lakhs for trademark infringement, passing off, and unfair competition by the defendant. The defendant was ordered to cease using the "MBD" mark and to bear the costs of the proceedings.