As per the words:
Good advertising does not just circulate information. It penetrates the
public mind with desires and belief.
This is just exactly advertising performs: it not only offers a commodity but it
also renders that commodity as crucial component of one's life beyond which one
cannot live in harmony. The advertising technique used by businesses and the
importance community places on commercials have also changed dramatically in the
last half-century. The field of marketing is no longer limited to recruiting
major personalities to advertise a product or to elicit the feelings that people
associate with it. Modern business environment is focused on establishing one
brand's superiority over another.
Advertisement is, without a doubt, a critical factor in assessing a product's
potential success. This is the most effective and tested method of attracting
the interest of prospective customers in the industry. Since customers have such
a wide range of goods to select from marketers often compare their items to
those of their rivals. Although this is an appropriate strategy, rivals often
use such strategies in order to obtain more financial advantages and exposure,
which either deceives consumers or leads to disparagement of the competition's
item.
Comparative advertising is marketing that measures one good or service to the
other, as the title implies. The aim of the competition is to increase the
marketer's profits by implying that the marketer's commodity is of the same or
better value than the related brand. The purpose of all such advertising is to
make a fair contrast of one's goods to those of rivals known to the general
populace.
The aim is to increase transparency and accountability, but there are many
benefits as well, including price control and increasing competitiveness to
enhance goods.[i]
Comparative advertising is more like a commodity pretending to be something that
another service or product isn't. Every company's brand promotional plan
nowadays is to assert dominance over the competition.[ii] In particular,
comparative advertising benefits new or unexpected brands. Consumers can make
more fair and educated buying preferences thanks to comparative advertising,
which increases customer knowledge and broadens the scope of the product in
growth.
The essence of competitive claims is complex. They can specifically or
indirectly relate to a rival. They can draw attention to the goods' differences
and similarities. The purpose of this theory is to enable for a proper
assessment of the reasons that differentiate one dealer's goods from those of
the other; such a correlation would invariably entail the use of registered
trademarks identified by the goods in issue. In the lack of regulations, this
usage may be considered trademark violation. While no Indian law describes
comparative marketing the UK Legislation determines it as any advertising that
“expressly or by inference, recognizes a rival or the products or facilities
provided by an opponent.”[iii]
Comparative advertising are divided between two kinds- those that explicitly
contrast competitive services and those that contrast competitive services
implicitly, the same are known as puffery and disparagement. Consider a
manufacturer who makes exceptional statements about his goods in order to
persuade the audience to purchase it. When the identical point is made by
undermining the reputation of a clearly recognizable competitor product it goes
beyond the narrow reach of puffery and leads to brand disparagement.
This may not only be slander of the opponent's commodity but it may also deceive
customers, as most manufacturers do not have a legitimate reason to say that the
rival's item is inferior.[iv] Although both forms of comparative advertising are
permitted in some nations, such as the United Kingdom, comparable advertising is
prohibited in others. Comparative advertising, on the other hand, is legal when
a merchant may not plan or claim that his rival's products are weaker or
unacceptable when contrasting the products. All they can do is exaggerate the
benefits of his goods, but he can't dismiss the benefits of his competitor's
goods. Puffery is legal in India as far as it is contextual.[v]
This assignment will majorly focus on the trademark infringement caused due to
comparative advertisement and the remedies available to the people regarding the
same violations. It further discusses how the other countries like UK and the US
with the help of various case laws deal with them. Lastly, it will focus upon
the constitutional aspect of advertisement and analyse whether such marketing
can
Comparative Infringement And Trademark Infringement
Trademark refers to a label that can be visually depicted and that can
differentiate one individual's products or services from that of another, and
can involve the form of the products, their labelling, and material
combinations. Trademarks are any term, title, logo, or method implemented and
adopted by a producer or retailer to distinguish and differentiate his products
from those produced or offered by the others, or any variation thereof.
In a period when the entire globe is seen as one globalized economy, marks are
critical in discerning the goods of one company of another. A trademark is a
label or mark that separates one product from its competitors of the same kind.
Its objective is to determine an item's origin and differentiate it from other
products of identical type. It gives a commodity personality, making it easier
for consumers to distinguish it from other goods of the same kind.
Trademarks
not only identify the source of an item but they also guarantee its reliability
and tend to create a market reputation by advertising it. Businesses use logos,
brand names, as well as other market labels to combine informative and
convincing components in their promotional tactics in a competitive world to
show their goods as the highest. Not only will have their own brand evolves in
prominence, but so does the use of their competitor's trademark.[vi]
Ralph Brown claims in Advertising and Public Interest why trademarks were
useless to the community on their own; the opinion of the community was in the
capacity of brand symbols to warn and avoid misunderstanding. He also claims
that the statutory defence of trademarks must be based on an assessment of how
well advertisement represented the interests of the public.[vii] The key goal of
a trademark is to "differentiate one individual's products from those of someone
other." As a result, a trademark allows a buyer to recognize products and its
sources.
As a result, if a marketer uses a rival's trademark to render a
distinction among his products and that of his rival, disparaging it in the
course, one such action on the marketer's behalf not only will raise concerns of
comparative advertisement and brand disparagement, as well as of trademark
violation. The core issue of Ralf's argument would be that trademarks seemed to
have no inherent meaning besides the symbolically conveyed knowledge about the
goods they followed.
That being said, given how businesses nowadays use their
registered trademarks to advertise their logos, the aforementioned assertion
appears to be false.[viii] These days, customers tend to place a great deal of
importance and trust in the trademark and the item for which it is connected.
Trademark Infringement:
Customer misunderstanding is at the heart of the trademark violation problem. Is
that one symbol so similar to the other one that an average buyer might be
deceived, misled, or confused about the origin of the service or product?" To
reach a violation decision, the judiciary want to understand what's on the minds
of consumers, how he's responding to the two marks if he's going to be misled.
Although customer misunderstanding has been the primary cause of trademark
violation there have been two additional causes of misunderstanding that are
more related to the market than the wider populace: trade misunderstanding and
passing off. Although representatives of the industry are less likely to be
misled or deceived than regular customers, evidence of market misunderstanding
has been deemed highly useful in violation situations. In violation cases,
proof of "passing off," in which a merchant intentionally and purposely tries to
pass one commodity off as the other, is also essential.[ix]
Trademark Infringement and Comparative Advertisement:
Comparative advertising is a word intended to define advertisements in which one
dealer's products or services are contrasted to those of other merchant. It
implies that although it is legal to use the other's mark, the marketer may
not discredit another's services or products in doing so. Any action denigrating
the other's products or services is not just an action of violation, as well as
an action of brand denigration. A trademark is simply a ‘label' used by one
company to differentiate its goods or products from those of others. This is one
of the fields of property rights, and its primary purpose is to preserve the
item's name, which includes services and products.
- In India, a trade mark is described as a label sufficient of it
being portrayed visually and sufficient of identifying one individual's
products or services than those of another, which may contain the form of
the products, their labelling, and colour combinations as per the S. 2 (1) (zb) of The
Trademark Act 1999.[x]
- A trademark is described as any mark suitable of being depicted
visually and sufficient of separating products or services of one seller
from that of other ventures according to the United Kingdom's Trade Marks
Act, 1994. Terms (including individual names), patterns, symbols, numbers,
or the form of products or their labelling may all be used as trademarks. Unless the meaning
demands differently, comparisons to a trademark in this Legislation often
involve referring to a common mark or registration mark.[xi]
In India, the legislation on relative marketing and brand deprecation in
trademark is focused on the decision of Irving's Yeast Vite Ltd v FA
Horsenail[xii]. The Trademarks Act of 1999, Section 29(8)[xiii], defines
circumstances in which the utilization of a trademark in advertisement can be
considered violation. It states that any advertisement that is not in compliance
with ethical standards, or that is harmful to the unique identity or
respectability of the brand, is an instance of violation.
Simultaneously,
Section 30 (1)[xiv] makes comparative marketing an inconsistent to actions that
violate Section 29[xv]. It states that any marketing that complies with the law
is permissible. It states that any advertisement that follows fair procedures
and does not damage the trademark's unique personality or reputation is
acceptable and therefore does not entail violation.
Even though the trademark is quite common and well-known, comparative
advertisements could be considered trademark violation. The MRTP Act gives rise
to the principle of "denigration of some other individual's products," which
contributes to discriminatory trading practices That is also prohibited by
section 29(8)(a)[xvi] of the Trademarks statute. Trademark problems occur only
if a rival's trademark is being used in comparative advertisements and brand
disparagement.[xvii]
In this lawsuit, Pepsi sued Coca-Cola for unfair utilisation of their trademark
in an advertisement in which a main character asks a child about his favourite
beverage and the child replies Pepsi, that was evident from his subdued mouth
movements. The main character then prompts the child to experience the two
beverage specimens after concealing their identities and challenges the child.
The main character then removes the lids of both containers, revealing that the
child's favourite beverage is "Thumps-Up," whereas the other looks suspiciously
like PEPSI. In many other promotions, the phrase "Thumps Up" is a wise option
was popularized, and this has harmed Pepsi's reputation.
The judge determined Coca-Cola liable under the Trademark and Copyright Act for
disparaging and devaluing the reputation of the plaintiffs' brands because the
protected Trademark was violated through the usage of a Globe System or a term
that misleadingly mirrored the PEPSI Mark.
The Trade Marks Act, specifically the
violation clauses, may be used by the owner of a licensed trademark to prohibit
it from being used in comparative marketing.
Briefly, the law on comparative advertisement can be stated as:
- There is hardly anything inconsistent with stating the quality of rival
services and products or using licensed trademarks to distinguish these as
far as the usage of a rival's label is truthful
- The copyright owner bears the weight of demonstrating that the
conditions mentioned in the section's proviso apply.
- There would be no violation until the symbol is used in an unethical
manner.
- The critical measure is whether a fair person will conclude that the
commercial is truthful after seeing it.
- For the reasons of Section 29 (8) and Section 30(1), legislative or
industry-agreed rules of ethics are insufficient to determine if a conduct
is truthful
- Fairness must be measured against something that is fair for the target
audience of the advertised products or services.
- It's important to remember that the wider populace is used to this type
of campaign.
- For the requirements of Sections 29 (8) and 30(1), an advertising that
is substantially deceptive is not true.
Comparative Advertisement: Indian Perspective And Other Nations
It is mainly to maximize income by claiming that the products are the strongest
in the industry, regardless even if this claim is false. The same had been
considered in the decision
Reckitt Benckiser (India) Ltd. vs Hindustan Unilever
Ltd.[xviii], in which Judiciary decided that a merchant is permitted to assert
their products to be of highest, defendant's contrast of his commodity
"Lifebuoy" to the plaintiff's item "Dettol" in his commercial breached the
narrow line among puffery and deprecating, and the commercial was found to be in
violation of Section 30(1).
Publicity occurs when an advertising company attempts to attract a customer's
focus by presenting overly generous assertions about his goods that are anything
more than his own belief of his own commodity instead of testable claims of
reality. Section 30(1) of the Trademarks Act of 1999 permits this. But at the
other end, puffery cases often overstep their bounds and attempt to cast the
other commodity in a poor context. The same would be then deemed to be
defamation, which is defined as the violation of several privileges of another
individual, which include trademark violation as defined by Section 29 (8) of
the Statute.[xix]
The sole aim of such advertisements must be for the advantage of buyers to allow
them to make an educated decision among two items[xx]. In reality, the very
foundation of trademarks is the defence of the national interest alone, because
the judiciary consider an undiscerning consumer who might purchase a counterfeit
item under the delusional notion that it is product "x." This very same
principle should underpin any measure taken in response to defamatory
commercials.”
Position in US:
As of 1915, the Federal Trade Commission has criticized deceptive advertisements
in the United States. According to part 32 of the Lanham Statute, a person is
accountable for trademark violation if they utilize "in business any
duplication, replica, clone, or colourable resemblance of a known trademark in
association with the sales, delivery, or promotion of any items and/or services
on or in association with which such use would be potentially misleading”. To
prove trademark violation the complainant must show that the respondent is using
a logo that is amusingly identical to his or her own.
A decision namely in
Playboy Enterprises, Inc. v. Frena [xxi], Playboy accused
Frena, the owner of an online message forum system where members often posted
and accessed clones of Playboy images for swap. Several of the pictures featured
Playboy's licensed PLAYBOY and PLAYMATE trademarks. Frena was charged with
copyright violation by Playboy. Despite Frena's contention that he had no
control over what his customers posted on the notice board, the court determined
that violation had occurred:
It is probable that users of Respondent Frena
might assume that Playboy was the origin of Respondent Frena's photos and that
therefore funded, supported, or allowed usage of photos.
Position in United Kingdom:
S.10 (3) under UK's Trademarks Statute 1994 notes, it is not mandatory to show
probability of misunderstanding in attempt to establish violation under this
clause, even if the products in dispute are unrelated.
In
BMW v. Deenik[xxii], a workshop holder used the terms "BMW Expert," to
promote his experience in fixing and maintaining BMW vehicles. BMW opposed to
the utilization of its authorized trademark in this manner and filed a complaint
with the ECK, citing Article 5 of the Regulation as the basis for its complaint.
The Court determined that the respondent's utilization of BMW's recognized
trademark was acceptable in these situations because the workshop holder
therefore might be unable to advertise his business, and that it also falls
within the meaning of Article 7 of the Regulation because the respondent was
appealing to legitimate BMW vehicles. According to Article 7[xxiii], the
trademark owner cannot, despite his permission, ban the usage of his products in
the marketplace under its trademark. According to the circumstance that the
products are altered or harmed when they've been placed on the market, or for
some other valid reason.
Remedies Against Advertisement Infringement
The phrase 'ubi jus ibi remedium' implies that wherever there is a right, there
must also be a solution. In all instances of violation and passing off lawsuit,
any court not subordinate to a Lower court with authority may award remedy. The
following are some of the forms of reassurances to which a claimant is
permitted:
- An enforcement order prohibiting the usage of the vitiating logo in the
future.
- Compensation or benefit accounts are two options.
The Delhi High Court ruled in a matter regarding two supposedly identical
labels. The plaintiffs and defendants were selling ice cream and similar milk
goods, but still at various price points. The Court ruled the Individual
Judge's ruling providing a temporary injunction against the appellant-respondent
usage of the latter symbol. [xxiv]
Permanent Injunction:
The Respondent was barred from utilizing white and red in its manufacturing and
selling in the lawsuit of Colgate Palmolive Company v. Anchor Health and Beauty
Care Pvt Ltd [xxv]because the claimant had exclusive privileges to the mixture
when it was designed for toothpastes. As a result, the appeal is granted, and
respondents are barred from including the colour scheme of white and red in that
case on the vessel of their products, namely “Tooth Powder,” for an ad interim
injunction.
While court orders have long been the standard recourse for trademark violations
Indian judges, particularly the High Courts, have finally begun issuing both
corrective and severe compensation. With the ruling in Time Incorporated v
Lokesh Srivastava[xxvi], the pattern of granting compensatory damages in
trademark cases began.
Other than this the other remedies available for the infringement can be sought
under the Consumer Protection Act, The Motor vehicles act, The Prevention of
Food and Adulteration Act etc.
Constitutional Protection In Comparative Advertisement
Many commercials may claim that their right to the freedom of speech and
expression is mentioned in Article 19 (a) of the Indian Constitution. In regards
to comparative marketing, it is essential that we examine Article 19 (1) (a) of
the Statute.
As we all know, social speech, radio, cable, and the media are all
protected under the ambit of this article. Even then, this fundamental right has
its limits, which are limited by the government enforcing fair constraints under
Article 19 (2). The Apex Court ruled in Tata Press Ltd. vs Mahanagar Telephone
Nigam Ltd.[xxvii] that:
business communication cannot be refused the immunity of
Article 19(1)(a) simply since it is provided by merchants.
The Apex Court
applied a broad understanding of Article 19(1)(a), holding marketing as
"commercial expression" have dual aspects. Advertisements raise awareness about
the promoted brand. The details made accessible via the advertising benefits the
general public.[xxviii]
The constant stream of economic knowledge is important in a free society.
Without the independence of "commercial expression," a democracy's economic
model will be disadvantaged. Since no specific area is stated in Article 19 (2),
Mahanagar Telephone cannot stand in the path in the name of "public good".
Advertising expression is now afforded the same level of rights as other forms
of speech. However, if comparative marketing is performed in a way that
infringes on another individual's freedom or reputation, or impedes trade, the
advertising would not be covered under the Indian Constitution.
Conclusion
This can be argued that comparative marketing is unquestionably advantageous
because it enhances trade competitiveness, customer interest, and commodity
identification in the industry, and as such should be permitted. However, there
must be controls in place to ensure that merchants engaged in comparative
commercials are not deceptive, engaging in unfair trading practices, demeaning
other competitors' goods, violating on their trademarks, and thereby spreading
disinformation when marketing their item. The Indian Constitution, the
Trademarks Law of 1999, and other laws and codes govern advertisement in India.
As a result, it can be inferred that relative advertising was widespread in the
west, and now is popular in our country as well. However, as a result of this
rise, trademark violation in comparative marketing by deceptive and fraudulent
business practices has gotten very common. The courts and laws play a
significant role in preventing and redressing unfair discrimination in this
country.
End-Notes:
- Trademark violations in Comparative Advertisement, (BananaIP) https://www.bananaip.com/ip-news-center/posts-7/ Accessed
on 28th March 2021
- Indralina Sen, Comparative Advertisement and Trademark Infringement: A
Comparative Analysis, (2019) 1 International Journal of Legal Sciences and
Innovation, Vol. 2
- Sujay, Comparative Advertisement & Infringement of Trademark(Legal services
India)
http://www.legalservicesindia.com/article/604/Comparative-Advertisement-&-Infringement-of-Trademark.html. Accessed
on 1st April 2021
- Khurana &Khurana, Comparative Advertisement: A Perspective (Mondaq)
accessed on 1st April
- Indralina Sen, Comparative Advertisement and Trademark Infringement: A
Comparative Analysis, (2019) 1 International Journal of Legal Sciences and
Innovation, Vol. 2
- Apoorva Sharma, Comparative Advertisement and Infringement of Trademarks: A
Perspective from Consumers https://ssrn.com/abstract=1896367 or http://dx.doi.org/10.2139/ssrn.1896367 accessed
on 2nd April 2021
- Ralph S. Brown, Advertising and the Public Interest: Legal Protection of
Trade Symbols, 57 YALE L.J. 1165, 1206 (1948), reprinted in 108 YALE L.J.
1619, 1659 (1999
- Ralph S. Brown, Advertising and the Public Interest: Legal Protection of
Trade Symbols, 57 YALE L.J. 1165, 1206 (1948), reprinted in 108 YALE L.J. 1619,
1659 (1999).
- Sujay, Comparative Advertisement & Infringement of Trademark(Legal services
India)
http://www.legalservicesindia.com/article/604/Comparative-Advertisement-&-Infringement-of-Trademark.html. Last
Accessed on 2nd April 2021
- DR. B.L. WADEHRA, Law Relating To Intellectual Property, 133 (Universal Law
Publishing Co. Pvt. Ltd. 4THed. 2007)
- The Trademarks Act, 1994 (United Kingdom)
- Irving's Yeast Vite Ltd v FA Horsenail (1934) 51 RPC 110
- The Trademarks Act, 1999, S 28(8)
- The Trademarks Act, 1999, S 30(1)
- The Trademarks Act, 1999, S 29
- The Trademarks Act, 1999, S 29(8)(a)
- Pepsi Co. Inc. and Ors. v. Hindustan Coca-Cola Ltd. and Anr (27) PTC 305
Del
- Reckitt Benckiser (India) Ltd. vs Hindustan Unilever Ltd. 2008 (38)
PTC139
- Selvam & Selvam, Comparative advertisement and trademark infringement (Lexology)
https://www.lexology.com/library/detail.aspx?g=1cf2e8f0-927c-4c06-8d22-5485e6be541e Accessed
on 2nd April 2021
- Tata Press Ltd. v. Mahanagar Telephone Nigam Ltd 1995 AIR 2438
- Playboy Enterprises, Inc. v. Frena 839 F. Supp. 1552 (M.D. Fla. 1993).
- BMW v. Deenik (1999) ETMR 399
- Article 7 (1) of the First Council Directive (89/104/EEC)
- M/s South India Beverages Pvt. Ltd. v. General Mills Marketing Inc. & Anr (2015
(61) PTC231 (Del)
- Colgate Palmolive Company v. Anchor Health and Beauty Care Pvt Ltd 2003
(27) PTC 478 (Del
- Time Incorporated v Lokesh Srivastava 2005 (30) PTC 3 (Del).
- Tata Press Ltd. vs Mahanagar Telephone Nigam Ltd. 1995 AIR (SC) 2438
- Indralina Sen, Comparative Advertisement and Trademark Infringement: A
Comparative Analysis, (2019) 1 International Journal of Legal Sciences and
Innovation, Vol. 2
Please Drop Your Comments