The term "Well-known Trade Marks" refers to marks, which may include words or
logos, that have acquired significant reputation and goodwill in the market
through legitimate trade practices. These marks may be associated with earlier
marks, even when used for different goods and services. Famous trademarks, akin
to registered trademarks, are safeguarded in India pursuant to the Trademark Act
of 1999.
In order for a trademark to achieve well-known status, it must attain
recognition from a significant portion of society and establish its own distinct
goodwill that sets it apart from other competitors. The Indian Patent office
acknowledges the national, international, and cross-border reputation of
well-known trademarks in India. This article will provide a concise overview of
the origin, evolution, legal provisions, and notable cases pertaining to
renowned trademarks.
It is not widely acknowledged that numerous trademarks
currently acknowledged in India are, in fact, well-known trademarks. This
article aims to analyze the significant modifications that have occurred in the
notion of a renowned trademark since its inception.
The Etymology Of Popular Commercial Brands
The etymology of the widely recognized trademark can be traced to the Paris
Convention for the safeguarding of Industrial property in the year 1883.
According to Article 6bis(1), it is impermissible to employ a trademark that is
indistinguishable, suggestive, or translated from a mark that is recognized as
well-known in any nation.
This implies that the use of a trademark that is a
replica, a mimicry, or a translation that could lead to confusion of a mark that
has been acknowledged by the relevant authority in the country of registration
or usage as being well-known and already belonging to an individual entitled to
the advantages of this Convention and utilized for comparable or identical goods
is prohibited.
The provision solely caters to marks applicable to goods and not services.
However, the TRIPS agreement subsequently broadened the scope by encompassing
the utilization of well-known trademarks from goods to services.
In regards to the subject of a trademark that is eligible for protection, the
TRIPS Agreement stipulates that "any symbol or combination of symbols that can
differentiate the products or services of one company from those of others can
serve as a trademark." Therefore, the TRIPS Agreement accords equal treatment to
both product and service trademarks, and its members are required to establish
appropriate registration systems for service marks. Following the Paris
Convention and the TRIPS Agreement, member countries have enacted revisions to
their respective Trade Marks laws, thereby instituting safeguards for the
protection of well-known marks.
The Process Of Reconstructing Popular Trademarks In India
The practice of utilizing a symbol to ascertain the origin of production of a
commodity is a time-honored tradition. The idea underwent commercialization
subsequent to the advent of the industrial revolution on a massive scale.
Consequently, mass production of homogeneous goods ensued, and these trademarks
were employed to distinguish the merchandise of distinct producers. Prior to
2003 , the safeguarding of established trademarks was accomplished through
Section 47 of The Trade and Merchandise Marks Act of 1958.
This provision
stipulated that if a registered trademark in verbal form had gained significant
renown for a particular category of goods, any other trademark that could
potentially create an association with the aforementioned trademark would be
ineligible for registration. However, if the owner of the original trademark did
not utilize it, this would not impede the registration of other trademarks for
different goods.
Significant modifications have been implemented in the Trade
Marks Act of 1999 following the 2003 amendment, which has resulted in the
replacement of the Trade & Merchandise Marks Act, 1958 (presently abolished).
The legal precedent that established the notion of a well-known trademark in
India is the case of
Sunder Parmanand Lalwani & Ors v. Caltex (India) Ltd. The
present case concerns a dispute pertaining to the trademark 'Caltex'.
The
respondent has alleged that the applicant has been using their trademark for
goods registered under a different class. The respondent claims to have been
using the mark in India for their goods since 1937 and has carried out extensive
publicity. The respondent argues that the applicant's proposed trademark is
identical to their own and therefore has the potential to cause deception and
confusion in the trade.
Upon submission of the affidavit, the deputy registrar
determined that the trade marks in question were identical, however, it was
noted that the goods associated with each party were distinct in nature. He
maintained that the opposition's goodwill was limited to the products for which
their trademarks were being utilized. The appellant has filed an appeal in
defiance of a prior judgment, after an appeal was filed by the opponent and
decided in their favor.
Upon considering multiple factors, the Bombay High Court
determined that based on the presented facts and evidence, it is evident that CALTEX, a widely recognized trademark, has the potential to cause confusion and
deceive the general public, despite the fact that the goods and services of the
parties are registered under different classes. The courts consider the
exploitation of a well-known trademark's deceptive nature to gain an unfair
advantage in terms of goodwill as an act of infringement.
However, the aforementioned narrative predates the implementation of the Trade
Mark Rules 2017, which delineates a protocol for submitting an application to
the registrar to ascertain a trade mark as being well-known.
The Provisions Pertaining To Well-Known Trademarks Are Of Significant Importance
- The Trade Mark Act, 1999
- The definition of a well-known trade mark, as per the Trade Mark Act of 1999, pertains to a mark that has gained significant recognition among a substantial segment of the public that utilizes the goods or services associated with the mark. The use of such a mark in relation to other goods or services may be perceived as indicative of a connection in the course of trade or the provision of services between the goods or services in question and the individual employing the mark in relation to the former.
- Section 11(6) provides a set of criteria for ascertaining the status of a trademark as a well-known trademark. These criteria include:
- The dissemination of knowledge and awareness pertaining to trademarks among a pertinent segment of the population.
- This inquiry pertains to the temporal, spatial, and promotional dimensions of a trademark's utilization and dissemination.
- The effective implementation of legal entitlements and acknowledgement by a judicial body or official registry.
- The Registrar shall consider the following factors in assessing the public recognition of a trademark, as per Section 11(7).
- The quantity of individuals who are currently or potentially able to consume goods and services.
- The quantity of individuals engaged in the channel of distribution of goods or services.
- The term "business circles" refers to groups of individuals or organizations engaged in the exchange of goods or services.
- According to the criteria for determining a well-known trademark, it is necessary for the trademark to be recognized as such by a significant portion of the public. {Sec 11(8)}
- The determination of a trademark as a well-known trade mark does not necessitate the fulfillment of the following conditions. {Sec 11(9)}-
- The term "Trade Mark" has been utilized within the jurisdiction of India.
- The trademark has been successfully registered.
- A request for the registration of a trademark has been submitted.
- Section 27(2) of the relevant legislation offers the recourse of passing off for trade marks that are widely recognized.
- Opposed to the registration of trademarks that bear significant resemblance to existing ones.
- Opposing the act of misusing a trademark.
- Trade Mark Rules 2017.
- Rule 124
Outline a protocol for submitting an application to the registrar to ascertain a
trademark's status as well-known.
Individuals have the option to submit an application in Form TM-M and remit the
fee specified in the First schedule to petition the Registrar for the assessment
of a trademark as being well-known. The submission of a statement of case, along
with all relevant evidence and supporting documents, is required to accompany
the aforementioned request.
The registrar has the authority to request documentation in order to make a
determination.
Prior to issuing an invitation for objection, it is necessary to consider the
involvement of the general public.
The Registrar is authorized to eliminate any trademark from the roster of
well-known trademarks in the event that it is discovered that the trademark was
included erroneously or inadvertently, or if it no longer meets the criteria for
inclusion in the list of well-known trademarks.
In accordance with Schedule First of the Trade Mark Rules 2017, the prescribed
fee for submitting a Request to include a trademark in the list of well-known
marks is Rs. 100,000. It is important to note that this fee can only be remitted
online and is applicable for a single mark only.
Judicial Precedents
"No man is entitled to represent his goods as belonging to the goods of another
man, and no man is allowed to use any mark, sign, symbol, device, or other
means, whereby making a direct false representation to a purchaser who purchases
from him, he enables such purchaser to tell a lie or to make a false
representation to somebody else who is an ultimate consumer."
In the context of American jurisprudence, the legal doctrine of passing off was
acknowledged as a means of forestalling the unjust exploitation of an
individual's reputation or positive standing by a third party. The concept of
passing off is not limited to commercial transactions, but also encompasses
non-commercial and professional activities. Furthermore, it has been established
that mens rea is not a prerequisite for the occurrence of passing off, as long
as harm is incurred.
Lord Diplock's statement in
Erven Warnink B.V. v. J.Townend & Sons (Hull) Ltd.,
outlines the fundamental components required for the redress of a passing off
action, which is a legal matter that warrants academic attention.
- misrepresentation,
- made in the course of trade,
- to ultimate consumers of goods or services supplied by him or to prospective customers of his
- which causes genuine harm to a business or goodwill of the trader by whom the action is instituted or would likely cause such harm; and
- which is calculated to harm the business or goodwill of another trader (in the sense that this is a reasonably foreseeable result).
In Bata India Limited v. Pyare Lal & Co., Meerut City And others (1985), it was
observed that
"A remedy of passing off action shall apply where a deception and confusion may
be caused for the product of someone else. It was also stated elements of mens
rea and damage is irrelevant in a passing off action. The main question lies in
the injury caused due to the deceptive nature of offending to plaintiff's
interest.
A. Banerji, J. held that the name "Bata" was not a familial or botanical name,
but rather a fanciful name used by a foreigner who established a business in the
production of shoes and similar products in the country. The name had gained
recognition in the market, and its use by another entity was likely to cause
confusion and harm to the plaintiff-Company. As a result, a prima facie case was
established, and the plaintiff (Bata) was granted a remedy for passing off
against the defendant ( Batafoam).
7 O'CLOCK for shaving razors a product of Gillette U.K. Ltd.was the first trade
mark to be recognized as well-known trade mark by Bombay high court in Kamal
Trading Co. and Ors. v. Gillette U.K. Ltd.(1988).
In this case appellant an Indian company was given the license to trade through
mark '7 O' CLOCK' but must suffix with 'EJTEK' for razor blade but also started
selling tooth brushes under the same trademark. The court held that selling of
tooth brush under the same mark which was not in agreement and manufactured by
the respondent (Gillette U.K. Ltd.) will deceive the public regarding the origin
of such product. It also accepted 70'Clock is well known. And usage of the mark
in respect of tooth brush will lead to passing-off.
In
Daimler Benz Aktiengesellschaft & Anr v. Hybo Hindustan (1993), it was held
that benz has gained huge recognition and goodwill in both nation and
international market and use of such word to sell even a non-popular and
completely different product may cause confusion and harm to the reputation of
already established trade mark.
From this case onwards we can see that the main idea behind the decision isn't
the likelihood of deception a similar trade mark can cause resulting in the
prima facie case and remedy of passing off instead it was the concept of
dilution of well-known trade mark i.e. if the usage of a well-known or
similar/identical trade mark is satisfied then the remedy of passing off will be
provided. Unlike in case of trade mark infringement where likelihood of
deception have to be established to avail such remedy. This marks switching from
the test of likelihood of deceptiveness to the dilution of well-known mark.
In Another case of
Caterpillar Inc. v. Mehtab Ahmed (2002), the court held that
Without a doubt, the plaintiff's trademark has come to stand for high-caliber
goods, and the defendants' use of its name and its distinctive and individual
stylistic elements suggests that they want to capitalise on the trademark
owner's goodwill and reputation. It is nothing more than trade name piracy.
Plaintiff is entitled to defend its mark, reputation, goodwill, and risk of
dilution associated with the act of passing off against the defendants' cunning
plans. The Delhi High Court, additionally analyzed the test of dilution of
well-known Mark.
The use of alike marks for identical goods would degrade the
worth of well-known mark and will also weaken its firmness and identification
value in market. It also implied that the Opposition need not to show the
likelihood of deception by usage of mark by Applicant in as much the evidence by
Opposition of intention of Applicant for adoption of the mark was to ride upon
the goodwill and reputation of popular mark.
In
Ford Motor Company & Anr. v. Mrs. C.R.Borman & Anr. (2014), the court held
that the plaintiff has proved beyond reasonable doubt the prestige and the
goodwill of the trade mark in the market and its existence for a long period of
time, its uniqueness and the extent of the geographical area of usage, the
know-how of the trademark "FORD" to the general public. Thus, the mark has
unquestionably gained the status of a "well-known mark". The present case was
then settled between the parties on mutually agreeable conditions.
In
Rolex Sa v. Alex Jewellery Private Limited & Others (2002), the plaintiff
filed an application for interim relief of restrain against defendant who was
selling artificial jewellery under the trade mark 'ROLEX' which belongs to
plaintiff who deals in watches. The plaintiff clearly established his goodwill
in the market and recognition of his trade mark by the general public to an
extent that if somebody use word ROLEX it will leads to subconscious relation
with the plaintiff product i.e. 'Rolex watches', ultimately establishing the
trade mark as well-known trade mark. Defendant was held not entitled to use the
word 'Rolex' for his jewellery and was also restrained from using domain name
www.rolexjewelleryhouse.com.
ITC Limited v. Philip Morris Products Sa And Others. (2010), here the suit was
filed due to the similarity of the logo used by parties to suit. It was alleged
that though defendants are not using the trade mark of the plaintiff but their
product packaging is identical to ITC's resulting in passing-off and
infringement.
It was held that the logo used by plaintiff is for service purpose
mainly with resorts, hotels, and the restaurants, hospitality sector whereas
defendant uses it on cigarettes and there exist a material difference between
the two products. Thus there exist is no link connecting the defendant's mark
with the plaintiff's services, which may cause damage to the latter, and unfair
advantage to the former and it was decided that temporary injunction won't be
granted to plaintiff.
Sanjay Chadha Trading As Messers Eveready Tools Emporium v. Union Of India &
Others (2022), a writ was filled by Mr. Sanjay Chadha against the order passed
by the Intellectual Property Appellate Board, which removes petitioner's (Sanjay
Chadha Trading As M/S Eveready Tools Emporium) 'everyday' from its name as per
the petition of respondent (Eveready Industries India Limited).
It was
established that respondent is using the word 'EVERYDAY' earlier from petitioner
and has gained goodwill in market and recognition of general public, it deals
with variety of product mainly consist of cell, battery, flashlights and is the
largest seller as per market share and thus gained the status of a 'well-known
mark' as per Section 2(1)(zg) of the Trade Mark Act, 1999.
It was argued by petitioner even though being aware of the use of word EVERYDAY
by petitioner, the respondent never registered the said trade mark in respect of
the product of petitioner's which include screw drivers and cutting pliers in
Class-8.
The court held the Respondent's trademark is well-known and the High Court
observed that:
Both parties' products are related and comparable commodities that may be found
in large supermarkets and shopping centres. The sole criteria that must be met
are whether the earlier trade mark is well-known and if using the later mark
will diminish the earlier mark's distinctive qualities or reputation.
Hence, the petition of petitioner was dismissed and the order of IPAB was held
to be well reasoned.
Conclusion
Initially, the concept of a well-known trademark was not fully developed,
despite being referenced in the Paris Convention and (trade related aspect of
intellectual property) TRIPS Agreement. However, over time, changes have been
made to enhance the protection of well-known trademarks. These changes began in
2003 and have resulted in the protection of the same being nearly equivalent to
that of registered trademarks.
Previously, it was up to the court to determine
whether a mark was well-known. However, since the enactment of the Trade Mark
Rules in 2017, this power has been granted to the registrar. As of now, 97
trademarks have been recognized as well-known trademarks.
Instances of individuals or entities misusing rights and privileges intended for
societal benefit and progress are not uncommon. One such example is trade mark
bullying, wherein established and larger organizations suppress small and
emerging producers and sellers by coercing them to relinquish their unique trade
marks. However, it is noteworthy that Section 142 of The Trade Marks Act of 1999
offers protection against such practices.
Based on judicial precedents, it can be inferred that the remedy of passing off
was initially granted when the likelihood of deception by a similar trademark
was established. However, this shifted to the dilution of a well-known mark,
whereby the remedy of passing off is provided if the usage of a well-known or
homogeneous trademark is satisfied. This may potentially encourage trademark
bullying, as the use of a similar trademark in a similar product does not always
cause confusion.
For instance, Dominos and Rominos are both renowned for pizza
with similar trademarks, yet there is no confusion among the general public
regarding them being two distinct brands. Therefore, it is crucial to focus on
the level of deception that can be caused by any new trademark to be more
equitable, particularly with the increasing number of startups and new
businesses both online and offline, which heightens the likelihood of having
similar trademarks.
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