Concept of Well Known and Prior User
Ms. Thabitha Marion Varghese
WELL KNOWNNESS
Section 2(1) (zg) of Trademark Act defines well known mark in relation to goods and services as a mark which has become so to the substantial segment of the public which uses such goods or services would be likely to be taken as indicating a connection in the course of trade or rendering of services between those goods or services and a person using the mark in relation to the first mentioned goods or services. Well known trademark contributes not only to the benefit of the trademark owner, but also to bring about a stable and fair development in International trade. The purpose of this strong protection is to prevent companies from free riding on the reputation of a well known trademark or from causing damage to the goodwill or reputation of the mark.
Section 11(2) of the Act states that a trademark which is to be registered for goods and services which are not similar to those for which the earlier trademark is registered in the name of a different proprietor, shall not be registered if the earlier trademark is a Well known trademark in India and the use of the later mark if would take unfair advantage or is detrimental to the distinctive character or repute of an earlier mark. Section 11(6) to Section 11(8) gives powers to the Registrar in determining whether a mark is well known or not and the factors to be considered are:
Ø Knowledge or recognition of the alleged well known mark in the relevant section of the public including knowledge obtained from promotion of the mark.
Ø Duration, extend and geographical area of the use of the mark.
Ø Duration, extend and geographical area for promotion of trademark including advertising or presentation at fairs or exhibition of goods or services to which the mark applies.
Ø Duration and geographical area of any registration or any publication for registration of the mark.
Ø Whether TM has been recognized as a well known mark by any Court or Registrar under record.
Ø The number of actual or potential consumers of goods and services.
Ø The number of persons involved in the channels of distribution of goods and services.
Ø The business circle dealing with the goods or services to which the TM applies.
Ø Where a TM has been determined to be well known by at least one relevant section of the public in India by any Court or Registrar, then the Registrar shall consider such a TM as a WKT.
Section 11(9) deals with factors which are not to be taken into consideration in determining a well known trademark and they are:
Ø Trademark used in India.
Ø Trademark has been registered.
Ø Application for registration of TM has been filed in India.
Ø Application for registration has been filed in any jurisdiction other than India.
Ø Trademark is well known to the public at large in India.
There is no separate registration procedure for well known trademark under Trademark Act, 1999. It is registered as any other ordinary mark and the conditions or registration has to be followed. The registration of a well known trademark can be refused if it is in conflict with the public policy requirements as under Sec.9 (2), or shape prohibitions as under Sec.9(3), even though it fulfills the other requirements under Sec.11(6) to Sec. 11(9). Infringement of a well known trademark takes place if the mark is registered and if the mark is not registered, then passing off takes place.
Section 29(4) of the Act deals with infringement of a registered well known mark. A person using in the course of trade, a mark which is identical with or similar to the registered trade mark having reputation in India or the use of it on different goods or services protected by registration constitutes infringement. Such use of a mark constitutes infringement of registered trademark having reputation in India if it is found that the use of the offending mark can take unfair advantage of the distinctive character or reputation of the registered trademark or is detrimental to the distinctive character or reputation of the registered trademark.
Judicial Interpretations
1) Kamal Trading Company v. Gillette UK
Gilette has been using the trademark ‘7o’clock’ for blades, shaving creams for a long time. Kamal Trading used the same mark for their tooth brush. The former sued later for infringement. The Court held that the former has acquired worldwide goodwill and reputation form the mark and that customers purchasing such goods would connect the goods to Gillette the registered owner of the trademark and injunction was granted.
2) N.R.Dongre and Ors v. Whirlpool Corporation
Whirlpool Corporation had its trademark ‘Whirlpool’ registered in India till 1977 but got lapsed for want of renewal. WPC filed a fresh application in 1988 and at the same time an Indian trust filed an application for registration of the same mark. In spite of WPC’s opposition the mark got registered. A suit was filed for infringement and the Court held that the reputation of the trademark ‘Whirlpool’ in respect to washing machines has travelled trans border to India and hence even though the respondents are not the registered proprietors in India, they can maintain action of passing off against Dongre.
3) Bata India Ltd v. Pyare Lal & Co and Ors.
Bata India Ltd used the mark ‘Bata’ for leather shoes and canvas and the defendants used ‘Bataform’ for mattresses, sofas and cushions. A suit was filed to restrain defendants, their employees from using the mark. Defendant’s contention was that rubber foam was quiet different from rubber shoes and that the business had no connection with each other. The question which arose was whether plaintiff had established that he respondents are passing off goods of their own as that of the plaintiff. The Court held that there was infringement.
4) Daimler Benz and another v. Hybo Hindustan
The plaintiff’s being owners of Mercedes Benz cars had used the mark ‘Benz’ along with a three pointed star. They became global leading producer and largest manufacturer of commercial vehicles in the world. The defendants who were garment manufacturers used the same mark which was infringement of the plaintiff’s mark. In this case the defendants were restrained from using the word ‘Benz’.
5) Aktiebolaget Volvo vs. Volvo Steels Ltd
The plaintiff a Swedish company has a variety of business activities like manufacturing of automobiles, engines and equipments. They had established worldwide reputation under the name ‘Volvo’, known as Volvo group. They had registered their mark in India under Class 7 and Class 12.The defendant used ‘Volvo’ as part of their corporate name who were the manufacturers of mild steel ingots. ‘Volvo’ was a Latin word not known in India. Defendant’s contention was that ‘Volvo’ and ‘Volvo group’ are farfetched. The plaintiff obtained an interim injunction restraining the defendants from issuing shares to the public. The Court held that there was passing off trans border reputation.
6) Honda Motors Co. Ltd v. Mr. Charanjit Singh and Ors.
The defendant company was using the trade name HONDA for ‘Pressure Cookers’ which they are manufacturing in India and even when their application for registration of this trademark had been rejected by the registrar they continued using it and again applied for registration and hence plaintiff has brought this plaint. Plaintiff is a well known company having presence all over the world in the field of Motor Cars, Motorcycles, Generators and other electronic appliances. They are doing business in India in association with the Siddharth Shriram Group with the name Honda Siel Cars India Ltd. Plaintiff has established that their business or goods has acquired the reputation and his trade name has become distinctive of his goods and the purchasing public at large associates the plaintiff's name with them. The use of trademark HONDA by respondents is creating deception or confusion in the minds of the public at large and such confusion is causing damage or injury to the business, reputation, goodwill and fair name of the plaintiff. Hence Court restricted the defendants from using the trademark HONDA in respect of pressure cookers or any goods or any other trademarks which are identical with and deceptively similar to the trade mark HONDA of the plaintiff and to do anything
which amounts to passing off to the goods of the plaintiff.
7) Jolen Inc v. Doctor & Co.
Defendants had copied the plaintiff’s trademark ‘Jolen’ and the color scheme and layout of the container and carton used for cream bleach for hair. Plaintiff had a worldwide reputation for the trademark and the same product had trans border reputation in India although the products were not directly sold in India. Suit was decreed in favor of the plaintiff.
8) Calvin Klein Inc v. International Apparel Syndicate
The plaintiff was internationally reputed designer clothing who filed a suit for passing off to restrain International apparel Syndicate from using the marks Calvin Klein and CK for clothes. The Calcutta High Court granted an injunction restraining the defendants from using the mark.
9) Alfred Dunhill Ltd vs. Kartar Singh Makkar
The mark “Dunhill” had acquired global reputation including India in relation to tobacco products and was registered in India. Defendants were dealing with textile articles under the same name. The Court granted interim injunction by taking into consideration trans border reputation and as it was registered in India.
PRIOR USER
Prior use of a trademark occurs before a confusingly similar use of that same mark. Such use by the second user infringes the first user's trademark if the use by both parties is in the same geographic territory. In the United States, the first person to use a mark has prior rights, and may exclude all subsequent users of the mark in that territory. The establishment of "prior user" of a mark is an important strategy in defending infringement actions where the mark and the goods covered are identical as well as in trademark prosecution stages.
Judicial Interpretation
In the case of Nandhini Deluxe vs. Nandhini the applicant trading as M/s Nandhini Deluxe filed an application for registration of trademark "NANDHINI DELUXE" with logo with respect to class 29 and after clearance of some preliminary objections the mark was advertised before acceptance for registration. The opponent trading as M/s NANDHINI (Andhra Style Multi-cuisine Family Restaurant) filed a notice of opposition objecting to the registration on the grounds that they had long and extensive use of the mark since1999. The Applicant filed a counter statement emphasizing that they are using the trademark NANDHINI DELUXE since 1989 for running Andhra Style Vegetarian and Non-Vegetarian restaurant and in view of the long user of the trademark "NANDHINI DELUXE" has become distinctive with him. The opposition proceeding eventually reached the stage of hearing after the opponent filed evidence in support of opposition and both the parties notified their intention to attend the hearing.
The issues involved were based mainly under the Sections 9, 11 & 181 and after careful consideration of the arguments advanced based on the above statutory requirements as well as the evidence adduced to the Deputy Registrar.
Both the applicant's and the opponent's mark are same design, get-up and way of writing are also same. The goods are identical. Both are engaged in the same business such as running Andhra Style Restaurant and selling cooked foods. Even though, both the applicant and the opponent are doing the same business, the user claimed by the applicant is nearly 10 years before the opponent. It is significant to note that both the Applicant and Opponent are carrying business in Bangalore. While the Applicant claims to be using the trademark NANDHINI with a device of lamp and written in a particular style since 1989, the Opponent is using "NANDHINI ANDHRA STYLE MULTICUISINE RESTAURANT (word per se). In view of prior user of mark by applicant, the applicant is entitled for registration of the trademark NANDHINI."