2011 (10) TMI 715 - HC - Companies Law

Summary

Issues involved: Copyright infringement, unauthorized software loading, rejection of plaint

Copyright Infringement: The plaintiffs, including Microsoft Corporation and its Indian subsidiary, filed a suit seeking permanent injunction against copyright infringement, delivery up, rendition of accounts, and damages. They claimed ownership of copyrights in software products like Microsoft Windows and Microsoft Office, stating that the computer programs are original literary works protected under the Copyright Act, 1957. The plaintiffs alleged that the defendants, a business entity engaged in selling computer hardware, infringed their copyrights by unauthorized hard disk loading of software onto computers sold by them. The plaintiffs provided evidence, including certificates of registration for the software programs, and the court granted a decree for permanent injunction in favor of the plaintiffs, along with damages and costs.

Unauthorized Software Loading: The defendants were accused of infringing the plaintiffs' copyrights by loading unlicensed or pirated versions of software onto computers sold by them. The plaintiffs' technical expert confirmed the presence of the plaintiffs' software on a laptop computer system sold by the defendants without authorization. The court granted an ex parte ad-interim injunction against the defendants, restraining them from reproducing, selling, or distributing the copyrighted software without authorization. Despite the defendants' attempts to challenge the plaint, they were proceeded ex parte, and the plaintiffs' evidence remained unrebutted, leading to the decree in favor of the plaintiffs.

Rejection of Plaint: Defendant No.1 filed an application for rejection of the plaint, arguing that there was no cause of action against them as they were not involved in any copyright violation. They claimed that there was no transaction between defendant No.1 and defendant No.2, the business entity engaged in copyright infringement. However, defendant No.1 failed to file a written statement and stopped appearing before the court, leading to the court proceeding ex parte against the defendants. The court ultimately decreed in favor of the plaintiffs, granting permanent injunction, damages, and costs.