1537 A
The Supreme Court of India New Delhi, India The 2015 Amity oot Court Competition
Ci!il Appeal No" ####2015 $Se%tion 135 of the Trademar&' A%t, 1((( read with Se%tion 3) of the Spe%ifi% *elief A%t, 1(+3
Arno- ur.wala
Appellant
!" Arna- ur.awala and /oole m
*e'pondent
Ci!il Appeal No" ####2015 (Se%tion 53T of the Competition A%t, 2002
Arno- ur.wala
Appellant
!" /oole m
*e'pondent
emorial for the appellant, 2015"
1|4a.e
TABLE OF CONTENTS Ta-le Ta-le of Content'"""""""""""""""""""""""""""""""""""""" Content'""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" """""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""""""""""""""""""""""""""""""""""" """""""""""""""""""""""""" """""""""2 """"""""" 2
Inde of Authoritie'"""""""""""""""""""""""""""""""""" Authoritie'""""""""""""""""""""""""""""""""""""""""""""""""""""""""" """""""""""""""""""""""""""""""""""""""""""""" """""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""""""""""""""""""""""6 """""""""""""6 Statement of uri'di%tion""""""""""""""""""""" uri'di%tion"""""""""""""""""""""""""""""""""""""""""""" """""""""""""""""""""""""""""""""""""""""""""" """""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""""""""""""""""""""""""""") """""""""""""""""") Statement of 8a%t'""""""""""""""""""""""""""""""""""""""""""""" 8a%t'"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" """""""""""""""""""""""""""""""""""""""""""""" """""""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""""""""""""" ( I''ue' In!ol!ed"""""""""""""""""""""""""""""""""""" In!ol!ed""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" """""""""""""""""""""""""""""""""""""""""""""" """""""""""""""""""""""""""""""""""""""""""""" """""""""""""""""""""""""""""""""""""""12 """"""""""""""""12 Summary of Ar.ument'"""""""""""""""""""" Ar.ument'""""""""""""""""""""""""""""""""""""""""""" """""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""""""""""""""""""""""""""""""""""""""""""""" """""""""""""""""""""""""""""""""""" """""13 Ar.ument' Ad!an%ed""""""""""""""""""""""""""" Ad!an%ed"""""""""""""""""""""""""""""""""""""""""""""""""" """""""""""""""""""""""""""""""""""""""""""""" """""""""""""""""""""""""""""""""""""""""""""""""""""""""""""1+ """"""""""""""""""""""""""""""""""""""1+ I"
The u'e u'e of the the impu.n impu.ned ed &eywor &eyword' d' -y the the re'po re'ponde ndent nt amoun amount' t' to the the tort tort of pa''i pa''in. n. off off 1+ A" The The u'e u'e of the Ad9 Ad9er-a ad!e ad!erti' rti'in. in. '%heme '%heme -y ArnaArna- i' inten intended ded to de%e de%ei!e i!e %on'umer'""""""""""""""""""""""""""""""""""""""""" %on'umer'"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" """""""""""""""""""""""""""""""""""""""""""""" """""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""""""""""""""""""""""""1+ """""""""""""""1+ " The The defend defendant ant throu. throu.h h thi' thi' a%t a%t i' attem attempti ptin. n. to to o-tai o-tain n e%ono e%onomi% mi% -enefit -enefit throu throu.h .h the the reputation of the plaintiff"""""""""""""""""""""""""""""""""""""""" plaintiff""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" """""""""""""""""""""""""""""""""""""""""""""" """""""""""""""""""""""""""""""""""""""17 """"""""""""""""17 C" y u'in u'in. . the the trademar trademar& & of ArnoArno- throu throu.h .h Ad9 Ad9er-a ad!e ad!erti' rti'in. in. '%heme, '%heme, ArnaArna- ha' ha' dama.ed the .oodwill of the plaintiff:' plaintiff :' -u'ine''"""""""""""""""""""""""""""""""""""""""""""""""""""" -u'ine''"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""17 """""""""""""17 D" There There i' i' 'uffi% 'uffi%ien ientt trade trade %onn %onne%ti e%tion on -etween -etween the produ% produ%t' t' of of the the plain plaintif tifff and and the the defendant"""""""""""""""""""""""""""""""""""""""" defendant""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" """""""""""""""""""""""""""""""""""""""""""""" """""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""""""""""""""""""""""""" """""""""""""""""1) "1)
II" The u'e of of the the impu.ned impu.ned &eyword' &eyword' -y the the re'pon re'pondent dent amount' amount' to trademar& trademar& infrin.ement"""""""""""""""""""""""""""""""""""""""""" infrin.ement""""""""""""""""""" """""""""""""""""""""""""""""""""""""""""""""" """""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""""""""""""""""""""""""""""""""""""""""""""""20 """""""""""""""""""""""""""""""""""""20 A"
Arno-:' Arno-:' trademar& trademar& i' not in!alid""" in!alid"""""""" """""""""" """""""""" """"""""" """"""""" """""""""" """""""""" """""""""" """""""""" """""""""" """""""""" """"""""""""" """"""""""""""""" """"""""""""""20 """""20 a The The re.i't re.i'ter ered ed trad tradee mar& mar& of the the app appell ellan antt i' prot prote%t e%ted ed und under er the the pro pro!i !i'o 'o %ontained in 'e%tion 'e% tion ( of the Trade ar&' A%t, 1((("""""""""""""""""""""""""""""""""""""""" 1((("""""""""""""""""""""""""""""""""""""""""""""""""""""""20 """""""""""""""20
- The re.i'ter' trade mar& of the appellant i' !alid under 'e%tion' 31 and 32 of the Trade ar&' A%t, 1((("""""""""""""""""""""""""""""""""""" 1(((""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" """""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""""""""""""""""""""""""""""22 """""""""""""""""""22 % "
The appella appellant nt i' entitle entitled d to the e%lu' e%lu'i!e i!e u'e of the mar& mar& ;ur. ;ur.wal wala:"" a:"""""" """""""" """""""" """"""22 ""22 ArnaArna- u'ed thi' thi' tradema trademar& r& in the %our'e %our'e of trade"" trade""""" """""" """""" """""" """""" """""" """""" """""" """""" """""" """""" """""" """"""" """""""" """""""" """"""""2 """"26 6
a
The %onditi %ondition' on' for u'e are the 'ame 'ame a' the %ondit %ondition ion'' for for u'e u'e in in the the %our %our'e 'e of of trade trade 26
- A''umin. that the fa%t that any u'e wa' in the %our'e of trade ha' to -e pro!en 'eparately"""""""""""""""""""""""""""""""""""""""""""""""""" 'eparately""""""""""""""""""""""""""" """""""""""""""""""""""""""""""""""""""""""""" """""""""""""""""""""""""""""""""""""""""""""" """""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""""""""""""25 """25 C"
ArnaArna- %ann %annot ot u'e u'e the the defen defen%e %e of of ha!i ha!in. n. u'ed u'ed only only part part of the tradema trademar&""" r&"""""""""" """""""""""""2 """"""2+ + a
The re'pond re'pondent ent i' i' u'in. u'in. the the entire entire trademar trademar&, &, not not part part of of it"""" it""""""" """""" """""" """"""" """""""" """""""" """""""" """""""" """""2+ "2+
-
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D" /oole /oole %annot %annot u'e it' defen defen%e %e of of -ein. -ein. merely merely a 'ear%h 'ear%h en.ine en.ine and and perform performin. in. the fun%tion' of a dire%tory"""""""""""""""""""""""""""""""""""""""""" dire%tory""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""""""""""""""""""""""""""""""""""""""""""""" """""""""""""""""""""""""""""""""""" """2( <" Thi' Thi' infr infrin. in.emen ementt i' li&ely li&ely to to %au' %au'ee %onfu %onfu'io 'ion n or %au'e %au'e the the %on' %on'ume umerr to -elie!e -elie!e that that there i' an a''o%iation with the re.i'tered trademar&"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""32 trademar&"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""32 III" /oole /oole ha' ha' entered entered into into anti anti %ompet %ompetiti! iti!ee a.reeme a.reement' nt' with with the the u'er' u'er' of the Ad9 Ad9eer-a '%heme""""""""""""""""""""""""""""""""""""""""""""" '%heme"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" """""""""""""""""""""""""""""""""""""""""""""" """""""""""""""""""""""""""""""""""""""""""""" """""""""""""""""""""""""""""""""""""""""""35 """"""""""""""""""""35 A" The The a.reem a.reement ent -etwe -etween en /oo /oole le and and u'er' u'er' of of the the Ad9 Ad9eer-a '%he '%heme me ha' ha' an appr appre%ia e%ia-le -le ad!er'e effe%t on %ompetition"""""""""""""""""""""""""""""""""""""" %ompetition""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" """""""""""""""""""""""""""""""""""""""""""" """"""""""""""""""""""""""""""""" """"""""""""35 35 a
Dri!in Dri!in. . <i'tin <i'tin. . Competi Competitor tor'' out of the the mar&et"" mar&et""""" """""" """""" """""" """""" """""" """"""" """""""" """""""" """""""" """""""" """""""" """""""" """""""3+ """3+
-
Creation of -arrier' to new entrant' in the mar&et""""""""""""""""""""""""""""""""""""""""""" mar&et"""""""""""""""""""""""""""""""""""""""""""""""""37 """"""37
%
Amelioratin. Amelioratin. fa%tor'"""""" fa%tor'""""""""""" """""""""" """""""""" """""""""" """""""""" """""""""" """""""""" """""""""" """""""""" """""""""" """""""""" """""""""" """""""""" """"""""""""""" """"""""""""""""""" """""""""""""37 """"37
" I9" I9"
The The a.reem a.reement ent re'ult' re'ult' in unfair %ompetit %ompetition ion""" """""" """""" """""" """""" """""" """""" """""" """""" """""" """""" """""" """""" """""" """""" """"""" """""""" """""""" """"""""3 """"3) ) /oole /oole a-u'ed a-u'ed it' it' dominant dominant po'ition po'ition in in the the mar&et""" mar&et"""""""" """""""""" """""""""" """""""""" """""""""" """"""""" """"""""" """""""""" """""""""" """"""""""""" """"""""3( 3(
A"
The rele!ant rele!ant mar&et""""" mar&et"""""""""" """""""""" """""""""" """""""""" """""""""" """""""""" """""""""" """""""""" """""""""" """""""""" """""""""" """""""""" """""""""" """""""""" """""""""" """""""""" """"""""""""" """"""""""""""3( """"""3(
"
a-u'e a-u'e of of domi dominan nantt po'iti po'ition on -y denyin. denyin. %ompet %ompetito itor' r' mar&e mar&ett a%%e'' a%%e'' to the inform informant ant 60 a
The mar&et mar&et in the the parti parti%ul %ular ar %a'e %a'e of of the the infor informan mantt i' uni= uni=ue" ue"""" """""" """"""" """""""" """""""" """""""" """""""" """""""" """""60 "60
-
Denial of mar&et a%%e''"""""""""""""""""""""""""""""""""""""""""""""""""""" a%%e''"""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""60 """""""""""""""""""""""""""""""""""""60
C"
A-u'e A-u'e of domina dominant nt po'iti po'ition on to to enter enter into into anot another her rele!an rele!antt mar&et" mar&et"""" """"""" """""""" """""""" """""""" """""""" """""""61 """61
4rayer for *elief"""""""""""""""""""""""""""""""""""""""""""""""" *elief""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""""" """""""""""""""""""""""""""""""""""""""""""""" """"""""""""""""""""""""""""""""""""""""""""""""63 """""""""""""""""""""""""63
3|4a.e
INDEX
OF AUTHORITIES
Ca'e' 1" 1>)00 1>)00 Conta%t' Conta%t' In%" !" !" ?en'"%om ?en'"%om In%" In%" 722 8"3d 8"3d 122( 122( $10 th Cir" 2013 2" Ala&nanda Ala&nanda Cement Cement 4ri!ate 4ri!ate ?imited ?imited and another another ! @ltrate%h @ltrate%h Cement Cement ?imited, ?imited, $2011 $2011 @ 1130 Indlaw 3" Allen $ $ B Co Co !" !" rown rown at'on at'on ?td 1(+5 1(+5 *4C 1(1 6" Anand rothe rother' r' 4ri!ate ?imited ?imited Throu. Throu.h h "D" ! @nion @nion of India India and other', other', $2016 $2016 SC 5)) Indlaw 5" Ara!ind Ara!ind ?a-orato ?a-oratorie' rie' !" !" odi%are, odi%are, $2011 $2011 6 ? 55 +" Ar'hiyat Ar'hiyat *ail Infra'tru%ture Infra'tru%ture and another another !" ini'try ini'try of of *ailway' *ailway' and Another Another,, $2012 $2012 Indlaw 25 7" riti'h road%a'tin. road%a'tin. Co Co !" Tal-ot al-ot otor otor Co ?td 1()1 1()1 8S* 22) 22) )" roo&field roo&field Communi%a Communi%ation' tion',, In%" !" e't e't Coa't Coa't 103+> (th Cir"1((( (" C>1E3+"(15 C>1E3+"(15 Deut'%h Deut'%hee 4o't A A F Inter%eption Inter%eption of of %ro''>-order %ro''>-order mail, 2002 2002 6 C""?"* C""?"*"" 5() 10" C>23+E0) oo.le In%" ?oui' ?oui' 9uitton, 9uitton, 2010 <"C"*" I>26+7 11" C>237E0) oo.le 8ran%e SA*? !" 9iati%um 9iati%um SA and Another, Another, 2010 <"C"*" I>26+7 12" C>23)E0) oo.le 8ran%e SA*? !" Ti.er SA*? and Gther', 2010 <"C"*" I>26+7 13" Ca'e C>+2E)+, AH/G Chemie 9 ! Commi''ion, 1((3 5 C""?"*" 215 16" CG4 E6731 oo.leEDou-le oo.leEDou-le Cli%& $200) $200) 15" CG4E5727 i%ro'oftEahooJ i%ro'oftEahooJ $2010 1+" Con'im Info 4!t ?td ! oo.le oo.le India 4!t ?td, $2010 + CTC )13 17" Con'im Info 4!t ?td" !" !" oo.le oo.le India 4!t ?td", $2012 Indlaw 2+21 2+21 1)" Corn 4rodu%t' *efinin. Co !" !" Shan.rila Shan.rila 8ood 4rodu%t' ?td, A"I"*" 1(+0 1(+0 SC 162 1(" Creati!e andi%raft' !" Sedana o 9al>orth rth In%" 1(0 N""S"2d N""S"2d (77, $1(5( 26" irnar 8ood and e!era.e' !" odfrey odfrey 4hillip' India ?td, $2001 (0 D?T )3( 25" Google Inc. v" Australian Competition and Consumer Commission $2013 Commission $2013 26( C?* 635 2+" arrod' ?td ! arrodian arrodian S%hool ?td, 1((+ *4C +(7 +(7 27" eine&en A'ia A'ia 4a%ifi% 4te" ?td ! SurKeet ?al, AN@ED
4|4a.e
31" yder Con'ultin. $@H ?imited ! o!ernor, o!ernor, State of Gri''a Throu.h Chief N .ner>Ni%h i%hol' ol' *e%ord *e%order er Corpor Corporatio ation n 101 N"" N""S"2d 6)) 61" etrop etropoli olitan tan Gpera Gpera A''o%i A''o%iatio ation n !" a.ner>N .ner>Ni%h i%hol' ol' *e%ord *e%order er Corpor Corporatio ation n 15( N"" N""S"2d 6)) 62" i%heal olterhoff !" @lri%h 8reie'le-en $2002 8"S"*" 8"S"*" 23 63" ultiple ultiple A''o%iation A''o%iation of India !" @nited 4rodu%er'EDi'tri4rodu%er'EDi'tri-utor' utor' 8orum and Gther', $2011 Indlaw 1) 66" urlidhar Shi!ram 4ate&ar and another ! State of ahara'htra, $2016 SC +6( +6( Indlaw 65" NeeraK alhotra, alhotra, Ad!o%ate Ad!o%ate !" Deut'%he Deut'%he 4o't an& ome 8inan%e ?imited $Deut'%he an& and Gther', $2010 Indlaw 2) 6+" Gffi%e Cleanin. Ser!i%e' ?imited !" e'tmini'ter e'tmini'ter indow indow and eneral Cleaner' ?imited, 1(6+ +3 *"4"C" 3( 67" 4hilip orri' 4rodu%t' S"A" B Anr"! Anr"! Sameer B Gther', $2016 DN>4rodu%t' 4ri!ate ?imited !
+3" yeth yeth oldin.' Corporation !" urnet 4harma%euti%al', $200) 3+ 4TC 67) +6" a'ha a'ha G!er'ea' and Gther' ! Commi''ioner of Sale' Ta and Gther', $200) SC 1263 Indlaw +5" a'hoda a'hoda Super Spe%iality o'pital', a partner'hip firm, repre'ented -y it' partner " De!ender *ao ! a'hoda a'hoda edi%are and *e'ear%h *e'ear %h Centre 4ri!ate ?imited, a %ompany re.i'tered under Companie' A%t, 1(5+, ha!in. it' re.i'tered offi%e at New Delhi, repre'ented -y It' Dire%tor and another, $2010 A4 536 536 Indlaw Statute' 1" The Compet Competiti ition on A%t, A%t, No" No" 12 of 2003 2003 2" The Con'um Con'umer er 4rote 4rote%tio %tion n A%t, A%t, No" No" +) +) 3" The Trade Trade ar& ar&'' A%t, A%t, No" No" 67 67 of 1((( 1((( 6" The The Indi Indian an 4en 4enal al Cod Code, e, 1)+ 1)+0 0 5" The Informat Information ion Te%h Te%hnolo nolo.y .y $Amendmen $Amendment t A%t, A%t, 200) 200)
oo&' th 1" * ICA*D ICA*D IS B DA9ID AI?<, CG4
2" A NANT 4ADANAAN , I NT23, $Clar& oardman Calla.han $1()) $6 th
6|4a.e
STATEMENT
OF JURISDICTION
I. Civil Appeal No. ____ 2015 2015
The Appellant ha' approa%hed thi' onoura-le Court under Se%tion 135 of the Trademar&' A%t, 1((( read with Se%tion 3) of the Spe%ifi% *elief A%t, 1(+3" II. Civil Appeal No. ____/2015
The Appellant ha' approa%hed thi' onoura-le Court under Se%tion 53T of the Competition A%t, 2002"
|4a.e
STATEMENT
OF FACTS
BAC!"#O$N%
/GG/?< /oole m i' a multinational %ompany head=uartered in erlin that operate' an internet 'ear%h en.ine httpMEEwww"oole"%omO" The we-'ite enKoy' .reat international pre'en%e and i' u'ed -y more than )0P of Indian internet u'er' on a daily -a'i'" The we-'ite wor&' -y automati%ally .eneratin. an or.ani% 'ear%h li't on the -a'i' of =uerie' entered into the 'ear%h tool-o -y u'er'" /oole %laim' to ha!e no human interfa%e in the .eneration of the'e 'ear%h re'ult', and that they are arran.ed in order of rele!an%e -a'ed on an al.orithm" T< * 2013 a' *'" 1,00,00,000E>" r" Arna- ur.wala founded the re'taurant Arna-:' utter Chi%&enO $AC in the year 1((0 1((0 in Hol&at Hol&ata, a, %reatin %reatin. . the we-'ite we-'ite www" www"arn arna-a--utt utter%h er%hi%& i%&en" en"%om %omO" O" It too allow' allow' %u'tomer' to pla%e order' for home deli!ery" r" Arna- opened an outlet of AC in Delhi in 2007" e re.i'tered the trademar& u'ed -y AC in the year 2000" T&E %IS'$TE
AD9<*A SC<< /oole de!eloped a '%heme of online ad!erti'in. in the year 2011 for -u'ine''e' or per'on', %alled Ad9er-aO" Thi' '%heme in!ol!ed the au%tion of %ertain &eyword' that when entered a' 'ear%h =uerie' -y internet u'er' on the we-'ite yielded hyperlin&' and a de'%ription |4a.e
thereofQ whi%h were %ho'en -y the hi.he't -idder" The'e hyperlin&' were tri..ered in addition to the or.ani% 'ear%h li't, and are 'eparated from the 'ame -y -ein. pla%ed a-o!e the 'ame, 'eparated -y -ein. hi.hli.hted in a li.ht yellow %olour ha!in. the word' Spon'ored Ad'O -ein. written alon.'ide them" Gne of the term' of thi' a.reement wa' that tha t trademar&' %annot -e u'ed a' &eyword' and that any 'u%h u'e would, pur'uant to an in!e'ti.ationQ re'ult in 'u'pen'ion of that &eyword" A??<
4
+|4a.e
In No!em-er 2012, r" Arno- al'o filed an information in the Competition Commi''ion of India, alle.in. that the Ad9er-a ad!erti'ement '%heme wa' an a-u'e of dominant po'ition and that it entered into anti %ompetiti!e a.reement' with the u'er' of the pro.ramme, al'o denyin. mar&et a%%e'' and re'tri%tin. pro!i'ion of 'er!i%e'Q re'ultin. in the !iolation of intelle%tual property ri.ht', a' had ta&en pla%e in the %a'e of the informant" In anuary 2012, the CCI found that there wa' no %ontra!ention of the Competition A%t and dire%ted the matter to -e %lo' %lo'ed ed unde underr Se%t Se%tio ion n 2+$+ 2+$+ of the the A%t" In an appe appeal al -y r" r" ArnoArno- -efo -efore re the the Competition Appellate Tri-unal $CG4A $CG4AT, the de%i'ion of the CCI wa' affirmed" r" ArnoArno- appealed the de%i'ion of the i.h Court -efore the Supreme Court of India, India, and preferred to file a Statutory Appeal a.ain't the order of the CG4A CG4AT a' well" The two appeal' were %lu--ed to.ether and ha!e -een admitted" They ha!e -een li'ted for final hearin." en%e the %urrent appeal"
10 | 4 a . e
ISSUES INVOLVED
I.
hether the u'e of the impu.ned &eyword' -y Arna- under the AdV the AdVerba erba ad!erti'in. '%heme amount to the tort of pa''in. offR II.
hether Arna- and /oole throu.h the u'e of the AdVerba AdVerba '%heme ha!e infrin.ed the re.i'tered trade mar& of the appellantR III.
hether the a.reement entered into under the AdV the AdVerba erba '%heme ha' an appre%ia-le ad!er'e effe%t on %ompetitionR I,. I,.
hether /oole a-u'ed it' dominant po'ition in the rele!ant mar&etR
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SUMMARY OF ARGUMENTS
I"
T< @S< G8 T< I4@N
8or the tort of pa''in. off four thin.' need to -e e'ta-li'hed, $i intention to de%ei!e, $ii attempt to o-tain undue e%onomi% -enefit and a mi'repre'entation whi%h $iii dama.e' the .oodwill of the plaintiff" plaintiff" The pur%ha'e of the ea%t 'ame word' of the appellant:' appellant:' re.i'tered trade trade mar& mar& a' &eywor &eyword' d' -y the re'pond re'pondent ent indi%at indi%atee hi' intenti intention on to de%ei!e de%ei!e %on'um %on'umer' er' re.ardin. the ori.in of 'er!i%e'" There al'o ei't' a hi.h pro-a-ility of %onfu'ion 'in%e -oth of them are -rother'" Throu.h the u'e of the AdVerba AdVerba ad!erti'in. '%heme the re'pondent ha' tried to earn undue e%onomi% -enefit -y mi'repre'entin. hi' 'er!i%e' to -e that of the appellant and eploitin. the .oodwill of C, whi%h o!er a period of 5+ year' ha' -e%ome etremely popular in Delhi, opened twenty fi!e outlet', a' well a' underta&en eten'i!e promotional effort' within the %ity" oth partie' al'o 'hare 'uffi%ient trade %onne%tion, 'in%e they pro!ide 'imilar 'er!i%e'Q whi%h in%rea'e' the li&elihood of %onfu'ion" II" T< @S< G8 T< I4@N
A" Arno-:' trademar& i' not in!alid A%%ordin. to 'e%tion (, whi%h lay' down the .round' for refu'al of re.i'tration of trademar&', a trade mar& %annot -e refu'ed re.i'tration if it ha' a%=uired a di'tin%ti!e %hara%ter a' a re'ult of the u'e made of it" r" Ar!ind HeKru ur.wala e'ta-li'hed the fa't food re'taurant %alled ;ur.wala:' e't utter Chi%&en: in Delhi in the year 1(5( at Connau.ht pla%e" It 'oon -e%ame a !ery popular re'taurant amon.'t the people of Delhi" Today Today it i' not Ku't a 'in.le re'taurant, -ut a %hain with o!er twenty fi!e outlet' within Delhi" Thou.h the epre''ion e't utter Chi%&enO %an -e %on'trued a' -ein. .eneri% and de'%ripti!e, the trade mar& i' not limited to it" The 'urname of the appellant when u'ed in the trade mar& a%t' a' the di'tin.ui'hin. element whi%h help' people to identify it 'olely with the -u'ine'' of the appellant and not thin& of it a' a .eneri% term %o!erin. all re'taurant' whi%h pro!ide 'imilar 'er!i%e'" The re.i'tered trade mar& of the appellant i' an ar-itrary %om-ination of 'eemin.ly .eneri% word', whi%h ha' -e%ome di'tin%ti!e" Al'o the len.th and manner of u'e, nature and etent of ad!erti'in. and promotion, effort' made to promote %on'%iou' %onne%tion in the pu-li%' mind -etween the trademar& and the -u'ine'' help' in e'ta-li'hin. the di'tin%ti!e
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%hara%ter" The ad!erti'ement ependiture in%urred -y the appellant 'how' that thi' ha' al'o -een fulfilled" " Arna- u'ed thi' trademar& in the %our'e %our'e of trade There i' no differen%e for the purpo'e' of the A%t -etween u'in. a mar& and u'in. a mar& in the %our'e of trade a' per 'e%tion 2(" Se%tion 2($+ 'pea&' of the fa%t that a per'on u'e' a trademar& in the %our'e of trade when he u'e' the re.i'tered trade mar& on -u'ine'' paper' or in ad!erti'in." It i' the appellant:' 'u-mi''ion that thi' i' the %a'e"
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III III" /GG/?< AS
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ARGUMENTS ADVANCED I. THE
USE OF THE IMPUGNED KEYWORDS BY THE RESPONDENT AMOUNTS TO THE
TORT OF PASSING OFF
4a''in. off i' a %ommon law tort, remedy for whi%h i' a!aila-le to -oth re.i'tered a' well a' unre.i'tered trademar&',1 aimed at prote%tin. the -u'ine'' reputation or .oodwill of the -u'ine''"2 A' held -y the Supreme Court of India in the %a'e of a ander nder ?td !" Anto Anto India 4!t" ?td3 a pa''in. off a%tion i' a.ain't the %ondu%t of the defendant whi%h A lend' to or i' intend intended ed or %al%ula %al%ulated ted to lead to de%ept de%eption ion"" The The defend defendant ant throu. throu.h h de%ept de%eption ion attempt' to o-tain an e%onomi% -enefit of the reputation whi%h the plaintiff ha' e'ta-li'hed for him'elf in a parti%ular trade or -u'ine''" It in!ol!e' a mi'repre'entation made -y a trader trader to hi' pro'pe pro'pe%ti! %ti!ee %u'tom %u'tomer' er' %al%ul %al%ulated ated to inKure inKure,, a' a rea'ona rea'ona-ly -ly fore'ee fore'eea-l a-lee %on'e=uen%e, the -u'ine'' or .oodwill of another C whi%h a%tually or pro-a-ly %au'e' dama.e to the -u'ine'' or .oodwill of the other trader" There i' al'o D 'uffi%ient trade %onne%tion -etween the plaintiff:' and defendant:' -u'ine'', enou.h to %au'e a li&elihood of %onfu'ion amon. %on'umer'" A. THE USE OF THE ADVERBA ADVERTISING SCHEME BY ARNAB IS INTENDED TO DECEIVE CONSUMERS
The &eyword' -ou.ht -y the defendant throu.h /oole:' ad!erti'in. '%heme to ad!erti'e hi' own -u'ine'' wa' an intentional and deli-erate effort on hi' part to de%ei!e pro'pe%ti!e %on'umer' re.ardin. the ori.in of 'er!i%e'" The defendant wa' a new entrant into the mar&et in Delhi for pro!idin. pro!idin. re'taurant re'taurant and food deli!ery deli!ery 'er!i%e', and had to fa%e a lot of %ompetition" i' pur%ha'e of the &eyword' whi%h are ea%tly identi%al to the re.i'tered trademar& of the plaintiff, and whi%h will therefore %au'e hi' we-'ite to -e ad!erti'ed when one i' in fa%t 'ear%hin. 'ear%hin. for C, a re'taurant !ery well &nown &nown in the %ity, 'how' 'how' hi' intention to de%ei!e or %au'e %onfu'ion on the part of the pu-li% re.ardin. the ori.in of 'er!i%e'" Any %on'umer when 'ear%hin. for C would fir't 'ee the ad!erti'ement of 1A NANT 4ADANAAN , I NT
Arna-:' utter Chi%&en and would -e %onfu'ed, e'pe%ially .i!en the fa%t that the plaintiff and the defendant are -rother' and therefore pro-a-ly a''o%iated" B. THE DEFENDANT THROUGH THIS ACT IS ATTEMPTING TO OBTAIN ECONOMIC BENEFIT THROUGH BENEFIT THROUGH THE THE REPUTATION OF THE OF THE PLAINTIFF
The defendant i' a new entrant into the mar&et for the pro!i'ion of re'taurant and food deli!ery 'er!i%e' in Delhi" Therefore -y -uyin. &eyword' 'imilar a' well a' identi%al to the re.i'tered trademar& of the plaintiff he ha' en'ured that the ad!erti'ement for hi' we-'ite will %ome a-o!e the or.ani% 'ear%h re'ult of the plaintiff:' we-'ite" Thi' will help him en'ure that the %on'umer', who a' it i' ha!e -een de%ei!ed re.ardin. the ori.in of .ood' and 'er!i%e', a' 'hown a-o!e, will enter hi' we-'ite and pla%e order for food there" Therefore the defendant ha' made undue e%onomi% -enefit -y ridin. on the reputation of the plaintiff:' -u'ine'' 'in%e he ha' -een a-le to di!ert %on'umer' to hi' -u'ine'', who were in fa%t loo&in. for the plaintiff:' we-'ite"
ARNAB HAS DAMAGED THE GOODWILL OF THE OF THE PLAINTIFF’S BUSINESS
The leadin. le.al authority for the definition of .oodwill %an -e found in the %a'e of Inland Inland *e!enu *e!enuee Commi'' Commi''ion ioner' er' ! uller uller B Co":' Co":' ar.ar ar.arine ine ?td" ?td" + In thi' %a'e ?ord a%na.hten 'aid that .oodwill i' the -enefit and ad!anta.e of the .ood name, reputation 6roo&field Communi%ation', In%" !" e't e't Coa't ( th Cir"1(((" 54lanned 4arenthood 8ederation of Ameri%a In%" !" u%%i, 62 @"S"4"L"2d @"S"4"L"2d 1(30Q ew' 8or e'u' ! rod'&y, 6+ @"S"4"L"2d 1+52" +Inland *e!enue Commi''ioner' !" uller B Co":' ar.arine ?td, $1(01 A"C" 217" 16 | 4 a . e
and %onne%tion of a -u'ine''" It i' the attra%ti!e for%e whi%h -rin.' in %u'tom" It i' the one thin. whi%h di'tin.ui'he' an old>e'ta-li'hed -u'ine'' from a new -u'ine'' at it' fir't 'tart"O The plaintiff %an 'how pre'en%e of .oodwill throu.h a%tual 'ale' or at lea't throu.h eten'i!e pre>'ale pu-li%ity that may ha!e -een underta&en -y him" 7 In the year 200), Arno- had %reated a we-'ite for hi' -u'ine'' $www"-e't-utter%hi%&en"%om for the ea'e of hi' a%tual and potential %u'tomer'" ) e had eten'i!ely ad!erti'ed hi' -u'ine'' alon. with hi' we-'ite:' @*? in the ma'' media a' well a' hoardin.' lo%ated throu.hout Delhi, ( and in the pro%e'' in%urred a 'iea-le ad!erti'ement ependiture of *'" 1,00,00,000E> in the year 2012>13" 10 In addition to 'u%h eten'i!e pre>'ale pu-li%ity, the term' of the a.reement dated 1't anuary 1()(, -etween the ur.wala -rother', .ranted Arno- the e%lu'i!e u'e of the mar& ;ur.wala: and the .oodwill a''o%iated with it" 11 Therefore Arna- ha' the potential to dama.e the .oodwill of C if hi' 'er!i%e' do not li!e up to the le!el whi%h people ha!e %ome to epe%t o!er the %our'e of 5+ year' year' from the plaintiff:' re'taurant'" oodwill would not -e worth anythin. if it didn:t ha!e the power of attra%tion to -rin. %u'tomer' %u'tomer' home to the 'our%e from whi%h it emanated"12 Sin%e the defendant defendant i' u'in. the AdVerba AdVerba '%heme to di!ert attention from the plaintiff:' -u'ine'' to hi', C would 'lowly lo'e the power to attra%t %on'umer' to it' own outlet'"
7Allen $ B Co !" rown at'on ?td 1(+5 *4C 1(1Q riti'h road%a'tin. Co !" Tal-ot otor Co ?td 1()1 8S* 22)Q ?a-yrinth edia ! ra!e orld orld 1((5 <?* 3)" )8a%t'heet 6 line 3" (8a%t'heet 6 line +" 108a%t'heet 6 line 7" 118a%t'heet 10 line 2" 12Inland *e!enue Commi''ioner' ! uller B Co":' ar.arine ?td, $1(01 AC 217" 1 | 4 a . e
A%%ordin. to the etended form of the %la''i%al trinityO te't 13 u'ed -y the adra' i.h Court in the %a'e %a' e of Ara!ind ?a-oratorie' !" odi%are16, for a 'u%%e''ful 'uit of pa''in. off a.ain't the defendant the plaintiff ha' to 'how that the defendant:' a%tion %au'e' a%tual dama.e or would most probably re'ult in 'u%h dama.e" The final out%ome in 'u%h a 'uit would depend on the impa%t that 'u%h adoption of the plaintiff:' mar& will ha!e on the .oodwill enKoyed -y the plaintiff" 15 If Arna- i' allowed to %ontinue with the u'a.e of &eywor &eyword' d' 'imilar 'imilar and identi identi%al %al to the Arno-: Arno-:'' re.i'te re.i'tered red tradema trademar&' r&' it will will re'ult re'ult in 'u-'tantial dama.e to the plaintiff:' .oodwill" D. THERE IS SUFFICIENT TRADE CONNECTION BETWEEN THE PRODUCTS OF THE PLAINTIFF AND THE AND THE DEFENDANT
In the %a'e of pa''in. off it i' immaterial a' to whether or not the produ%t' of -oth the plaintiff and defendant -elon. to the 'ame %la''" hat the %ourt only need' to eamine i' whether there i' 'uffi%ient trade %onne%tion -etween the produ%t' 'o a' to re'ult in li&elihood of %onfu'ion" 1+ In the %a'e of Corn 4rodu%t' *efinin. Co !" Shan.rila 8ood 4rodu%t' ?td17 the appellant:' produ%t %ould -e u'ed to manufa%ture the re'pondent:' .ood'" The %ourt held that thi' wa' .ood enou.h to e'ta-li'h a 'uffi%ient trade %onne%tion -etween the produ%er'" In Gneida ?td ! 4an&aK ain 1) &it%hen %utlery and 'tainle'' 'teel were %on'idered a' allied .ood'" In our %a'e the 'er!i%e' offered -y -oth the partie' are almo't almo't identi identi%al %al,, -oth -oth offerin offerin. . re'taur re'taurant ant and home home deli!e deli!ery ry 'er!i%e' 'er!i%e'"" Therefo Therefore re it i' 'u-mitted that there i' 'uffi%ient trade %onne%tion -etween the two partie', enou.h to %au'e at lea't a li&elihood of %onfu'ion on the part of the pu-li%"
13*e%&itt B Coleman ! orden, 1((0 1((0 1 All <* )73" 16Ara!ind ?a-oratorie' !" odi%are, $2011 6 ? 55" 15arrod' ?td ! arrodian S%hool ?td, 1((+ 1((+ *4C +(7" 1+4admana-han, supra 1+4admana-han, supra note 1, at +(" 17Corn 4rodu%t' *efinin. Co !" Shan.rila 8ood 4rodu%t' ?td, A"I"*" 1(+0 SC 162" 1)See %it 57 on p. 70 1 | 4 a . e
In T"9" 9enu.opal !" @'hodaya
USE OF THE IMPUGNED KEYWORDS BY THE RESPONDENT AMOUNTS TO
TRADEMARK INFRINGEMENT TRADEMARK INFRINGEMENT
1(T"9" 9enu.opal !" @'hodaya
A. ARNOB’S TRADEMARK TRADEMARK IS IS NOT INVALID a) The The re! re!"# "#er ere$ e$ #ra$ #ra$e e %ar& %ar& '( #he #he ae ae**a **a+# +# !" r'#e r'#e#e #e$ $ -+$e -+$err #he #he r'!"' '+#a!+e$ !+ "e#!'+ / '( #he Tra$e Tra$e Mar&" A#, 0///
A%%ordin. to 'e%tion (, whi%h lay' down the .round' for refu'al of re.i'tration of trade mar&', any mar& whi%h i' de!oid of a di'tin%ti!e %hara%ter, or i' intended to de'i.nate the &ind, =uality or intended purpo'e of the 'er!i%e' rendered or ha' -e%ome %u'tomary in the %urrent lan.ua.e i' not to -e re.i'tered unle'' -efore the date of appli%ation appli%ation for re.i'tration it ha' a%=uired a di'tin%ti!e %hara%ter a' a re'ult of the u'e made of it" It i' 'u-mitted that the re.i'tered trade mar& of C ha' a%=uired a di'tin%ti!e %hara%ter in the %our'e of it' 36 year' of ei'ten%e -efore the re.i'tration of the trade mar&" r" Ar!ind HeKru aur.wala e'ta-li'hed the fa't food re'taurant %alled ;ur.wala:' e't e't utter Chi%&en: in Delhi in the year 1(5( at Connau.ht Connau.ht pla%e" It 'oon -e%ame a !ery popular re'taurant amon.'t the people of Delhi" Today Today it i' not Ku't a 'in.le re'taurant, -ut a %hain with o!er twenty fi!e outlet' within Delhi" Court' ha!e held that when de'%ripti!e word' are in!ol!ed, e!en a 'mall di'tin.ui'hin. element in the u'e would -e re.arded a' ade=uate" In Gffi%e Cleanin. Ser!i%e' ?imited !" e'tmini'ter e 'tmini'ter indow indow and eneral Cleaner' ?imited the Court of of Appeal Appeal held that where the name of the -u'ine'' %on'i't' of word' de'%ripti!e of that -u'ine'' a 'li.ht differen%e will -e a 'uffi%ient di'tin%tion" The ou'e ou'e of ?ord', upholdin. thi' de%i'ion 'aid that Uhere a trader adopt' word' in %ommon u'e for hi' trade name, 'ome ri'& of %onfu'ion i' ine!ita-le" ut that ri'& mu't -e run unle'' the fir't u'er i' allowed unfairly to monopoli'e the word'" The Court will a%%ept %omparati!ely 'mall differen%e' a' 'uffi%ient to a!ert %onfu'ion"U It i' 'u-mitted that thou.h the epre''ion e't utter Chi%&enO %an -e %on'trued a' -ein. .eneri% and de'%ripti!e, the trade mar& i' not limited to it" The 'urname of the appellant when u'ed in the trade mar& a%t' a' the di'tin.ui'hin. element whi%h help' people to identify it 'olely with the -u'ine'' of the appellant and not thin& of it a' a .eneri% term %o!erin. all re'taurant' whi%h pro!ide 'imilar 'er!i%e'" The re.i'tered trade mar& of the appellant i' an ar-itrary %om-ination of 'eemin.ly .eneri% word', whi%h ha' -e%ome di'tin%ti!e" The re'pondent ha' the option of %hoo'in. a num-er of different word' a' &eyword', whi%h hi' pur%ha'e of forty 'i other &eyword' 'how, 'how, and therefore he need not -uy thi' ea%t %om-ination of four word' whi%h form the appellant:' re.i'tered trade mar&"
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In 'o far a' trademar&' are %on%erned, they are .enerally %la''ified in the order of their in%rea'in. di'tin%ti!ene''M .eneri%, de'%ripti!e, 'u..e'ti!e, ar-itrary and fan%iful" The more di'tin%ti!e the mar&, the .reater the prote%tion afforded -y law" law" hen a trademar& i' not inherently di'tin%ti!e, it may ne!erthele'' -e prote%ted if it ha' a%=uired di'tin%ti!ene'', al'o &nown a' U'e%ondary meanin.U" ut it depend' upon the len.th and manner of u'e, nature and etent of ad!erti'in. and promotion, effort' made to promote %on'%iou' %onne%tion in the pu-li%' mind -etween the trademar& and the -u'ine'' and etent to whi%h whi%h the pu-li% a%tually identifie' the mar& and the produ%t produ%t or 'er!i%e a' mea'ured -y Con'umer Sur!ey'" The appellant:' trade mar& fulfill' all the aforementioned %ondition' re=uired to e'ta-li'h the fa%t that it ha' a%=uired a 'e%ondary meanin." The trade mar& ha' -een in u'e for a lon. time $fifty 'i year'" The trade mar& ha' al'o -een ad!erti'ed eten'i!ely -y the appellant throu.h the ma'' media a' well a' hoardin.' hoardin.' in Delhi" The lon. period of ei'ten%e 'upplemented -y the ad!erti'in. effort' underta&en promote a %on'%iou' %onne%tion in the pu-li%:' mind a' they relate the epre''ion ;ur.wala:' e't utter Chi%&en: only to the appellant:' -u'ine''" The %ourt' ha!e al'o held that if -y lon. a''o%iation with a per'on:' produ%t' or 'er!i%e', a de'%ripti!e word a%=uire' a 'e%ondary meanin. then they:re entitled to prote%tion" In *eddaway !" anhan it wa' held that the term ;%amel hair -eltin.:, an epre''ion %ontainin. 'olely .eneri% word', had a%=uired a 'e%ondary meanin." The appellant:' trade mar& had ei'ted for thirty four year' -efore .ettin. re.i'tered, in the %our'e of whi%h it -e%ame etremely popular amon. the people of Delhi" Today Today it ha' twenty fi!e f i!e outlet' in Delhi" All the'e fa%t' .o to 'how that ;ur.wala:' e't utter Chi%&en: 'er!e' the trade mar& purpo'e of helpin. people identify the 'our%e of 'er!i%e' a' -elon.in. to the -u'ine'' of the appellant and not thin& of it a .eneri% de'%ription" A de'%ripti!e trade mar& may -e entitled to prote%tion if it ha' a''umed a 'e%ondary meanin. whi%h identifie' it with a parti%ular parti%ular produ%t or a' -ein. from a parti%ular 'our%e" Therefore it %an -e 'een that u'a.e of a %om-ination of de'%ripti!e word' o!er a lon. period of time %an lead to identifi%ation of the 'our%e of .ood' -a'ed on the mar&" 1) The re!"#er re!"#er" " #ra$e %ar& %ar& '( #he ae**a+# ae**a+# !" a*!$ a*!$ -+$er -+$er "e#!'+" "e#!'+" 20 a+$ 23 '( #he Tra$e Mar&" A#, 0///
The ori.inal re.i'tration of the trade mar& -y the appellant in 1((3 i' prima fa%ie e!iden%e of it' !alidity"
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If it i' pro!en that after re.i'tration and -efore %ommen%ement of the'e le.al pro%eedin.' %hallen.in. the !alidity of the re.i'tration of the appellant:' trade mar& it ha' a%=uired a di'tin%ti!e %hara%ter in relation to the 'er!i%e' for whi%h it i' re.i'tered then it will not -e de%lared in!alid" In the year 200) $after re.i'tration and -efore %ommen%ement of le.al pro%eedin.' the appellant e!en %reated a we-'ite for hi' -u'ine'' whi%h allow' pro'pe%ti!e %on'umer' to !iew the menu online and pla%e order' for home deli!ery, deli!ery, with the .uarantee that order' pla%ed on the we-'ite will -e deli!ered in thirty minute' or le''" e al'o undertoo& eten'i!e ad!erti'in. of not only hi' -u'ine'' -ut al'o the we-'ite:' @*? in the ma'' media a' well a' 'e!eral hoardin.' in 'e!eral pla%e' a%ro'' the %ity" %ity" The %ompany:' %ompany:' finan%ial 'tatement' for the a''e''ment year 2012>13 re%orded ad!erti'ement ependiture at a whoppin. ₹1,00,00,000E>"
All the'e effort' 'upplemented the .ood .ood name and reputation that the
appellant:' -u'ine'' had e!en -efore re.i'tration and therefore lend to the e'ta-li'hment of the di'tin%ti!e %hara%ter of the appellant:' trade mar&" ) The ae**a+# ae**a+# !" e+#!#*e$ e+#!#*e$ #' #he e4* e4*-"!e -"!e -"e '( #he %ar& %ar& 5M-r6a 5M-r6a*a’ *a’
A%%ordin. to the a.reement dated 01"01"1()( entered into -etween the appellant and the re'pondent, the mar& ;ur.wala: and the .oodwill a''o%iated with it -elon.ed e%lu'i!ely to the defendant" In Spen%er B Co" ?td !" !" Spen%er Soft Drin&' Drin&' Co" the %ourt re%o.nied that a family mar& 'u%h a' ;Spen%er: %an -e entitled to trade mar& prote%tion 'in%e the mar& wa' in u'e for a %on'idera-ly lon. period of time and had a%=uired di'tin%ti!ene'' in 'o far a' the appli%ant:' .ood' were %on%erned" Similarly, the mar& ;ur.wala: ha' -een in u'e -y the appellant:' -u'ine'' for a lon. period of time $fifty 'i year' and ha' a%=uired di'tin%ti!ene'' a' 'hown a-o!e" In *eddy 4harma%euti%al' ?td !" Dr" Dr" *eddy:' *eddy:' ?a-oratorie' ?td the defendant %ontended that the word *eddy wa' a %ommon 'urname and hen%e none %ould %laim monopoly o!er thi'" They al'o %ontended that their mana.in. dire%tor had *eddy a' hi' 'urname and that thi' wa' a 'uffi%ient enou.h %ondition for adoptin. thi' name" The Delhi i.h Court reKe%ted the'e %ontention' and held that the name *eddy had a%=uired di'tin%ti!ene'' o!er a period of time" The %ourt %on'idered a' material the reputation of the plaintiff:' %ompany"
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The 4unKa- and aryana i.h Court in the %a'e of @nited Iron B Steel or&' !" !" o!t" of India had to de%ide whether whether the initial' of the appli%ant @ISO @ISO %ould -e re.i'tered a' a trade mar&" The hi.h %ourt held that one of the re%o.nied te't' for determinin. di'tin%ti!ene'' wa' whether the re.i'tration would tend to prote%t the pu-li% from impo'ition or the re'ult would -e re!er'e of it" The %ourt o-'er!ed that -y u'in. the name of an indi!idual or of a firm a' a trade mar&, no one 'hould -e allowed to pre!ent any per'on or firm of a 'ame or 'imilar name from u'in. it' name or initial' in %onne%tion with the .ood' manufa%tured -y the 'e%ond firm"O owe!er if the initial' or the name or part of the name had, -y %on'tant and eten'i!e u'e, a%=uired di'tin%ti!ene'', the mar& would -e entitled to re.i'tration and 'u-'e=uent prote%tion" Therefore the %ontention of the re'pondent that he i' entitled to the u'e of the mar& ;ur.wala: 'in%e it i' hi' 'urname al'o i' not !alid due to the a%=uired di'tin%ti!ene'' it ha' with the appellant:' -u'ine''" There %an -e no 'tatutory re=uirement re.ardin. the num-er of year' or ea%t etent of the period after the epiry of whi%h a mar& may -e deemed to ha!e ha!e a%=uired di'tin%ti!ene'' and thi' would depend on the fa%t' and %ir%um'tan%e' of ea%h %a'e" In the %a'e of @nited Iron B Steel or&' or&' ! o!t" of India a period of two year' wa' held to -e 'uffi%ient to ha!e ha!e ena-led the mar& of the appellant to a%=uire 'u%h di'tin%ti!ene''" In that %a'e the %ourt had to de%ide whether the initial' of the plaintiff %ould -e re.i'tered a' a trade mar&" A' oppo'ed to thi' the appellant enKoyed popularity within Delhi for a period of 36 year' prior to re.i'tration and here the appellant i' %laimin. e%lu'i!ity with re'pe%t to the entire trade mar& and not 'ome 'hortened !er'ion of it" If the re'pondent ar.ue' that tha t the mar& ;ur.wala: i' made up of two 'eparate word' ;ur.: and ;ala:, ;ala:, two %ommon word' in the indi lan.ua.e whi%h when put to.ether form a new word, then it would -e termed a' an in!ented word, whi%h are entitled to a hi.her de.ree of prote%tion" An An in!ented word %ould -e a %ompo'ite %ompo'ite word deri!ed out of two %ommon or .eneri% word'" B. ARNAB USED THIS USED THIS TRADEMAR TRADEMARK K IN IN THE THE COURSE OF TRADE OF TRADE a) The The '+$ '+$!# !#!' !'+" +" ('r -"e are #he "a%e a" #he #he '+$ '+$!# !#!' !'+" +" ('r -"e !+ #he #he '-r"e '( #ra$e
23 | 4 a . e
The Trademar& A%t A%t doe' not epli%itly epli%i tly define ;%our'e of trade:, thou.h it doe' allude to it multiple time'" The appellant 'u-mit' that the rea'on %our'e of trade i' not defined 'eparately in the A%t i' that it i' meant to -e u'ed in %om-ination with the word u'e" That i' to 'ay, when the le.i'lation define' !ariou' %ondition' whi%h when fulfilled mean' a per'on i' u'in. a trademar&, it a%tually mean' that tho'e %ondition' when fulfilled mean a per'on i' u'in. it in the %our'e of trade a' well" There i' no differen%e for the purpo'e' of the A%t -etween u'in. a mar& and u'in. a mar& in the %our'e of trade a' per 'e%tion 2(" It i', after all, a &nown fa%t that to interpret a le.i'lation one mu't under'tand the intent of it' framer' 23, and it i' li&ely that the rea'on the framer' defined when one would -e u'in. a trademar& -ut did not 'eparately define when you would -e u'in. it in the %our'e of trade i' -e%au'e they wanted to imply that u'e in the %ontet of 'e%tion 2($+ meant u'e in the %our'e of trade it'elf" Thi' i' 'u-'tantiated in the way thi' ha' -een interpreted -y Court'" In the %a'e of Heineken Asia acific te. !td v Sur"eet !al #$ , when the Court, while di'%u''in. the element' ne%e''ary to pro!e infrin.ement, .o throu.h the definition of infrin.ement a' i' pro!ided in Se%tion 2+" hen they loo& at indi!idual fa%tor' whi%h %ompri'e infrin.ement, they loo& at u'e and mention that the %riteria for 'howin. u'e are mentioned in Se%tion 2($+M Se%tion 2($+$% epre''ly pro!ide' that for the purpo'e of Se%tion 2(, a per'on u'e' a re.i'tered mar& if he, inter> alia, import' or eport' .ood' under the mar&O" At that the Court end' it' analy'i'" It doe' not at any time try to %on'ider whether 'u%h u'e wa' in the %our'e of trade" Similarly, in the %a'e of %ilip of %ilip &orris roducts roducts S.A. ' Anot%er v Sameer Sameer ' (t%ers #) , the , the Kud.e ruled that readin. Se%tion 2($1 alon. with Se%tion 2($+ wa' 'uffi%ient to 'how that trademar& infrin.ement had o%%urred" Thi' a.ain i' etremely indi%ati!e of the fa%t that the Court felt that u'e wa' 'ynonymou' with u'e in the %our'e of trade in the %ontet of the Trademar& A%t"
23 Di'tri%t inin. Gffi%er and Gther' ! Tata Iron and Steel Company and Another, $2001 $2001 SC 200++ Indlaw" 26 eine&en A'ia 4a%ifi% 4te" ?td ! SurKeet ?al, AN@ED
The appellant 'u-mit' that u'e in the %our'e of trade i' the 'ame a' u'e in the %ontet of Se%tion 2(, and hen%e, a%%ordin. to 'u-'e%tion + 2+, a per'on u'e' a trademar& in the %our'e of trade when heM $a affie' it to .ood' or the pa%&a.in. thereofM $- offer' or epo'e' .ood' for 'ale put' them on the mar&et, or 'to%& them for tho'e purpo'e' under the re.i'tered trade mar&, or offer' or 'upplie' 'er!i%e' under the re.i'tered trade mar&M $% import' or eport' .ood' under the mar&M or $d u'e' the re.i'tered trade mar& on -u'ine'' paper' or in ad!erti'in." If he doe' any of the'e four a%t', he:' u'in. the trademar& in the %our'e of trade" It i' =uite %lear in thi' %a'e that %ondition $d i' -ein. fulfilled" 1) A""-%!+ A""-%!+ #ha# #he #he (a# #ha# #ha# a+7 -"e 6a" 6a" !+ #he '-r"e '-r"e '( #ra$e ha" #' 1e r'e+ "eara#e*7
In the a-'en%e of a definition -ein. .i!en in the a%t, the appellant 'u-mit' that the Court 'hould refer to the definition of the word .i!en in la%&:' ?aw Di%tionary" There There ei't' pa't pre%eden%e on why la%&:' ?aw Di%tionary 'hould -e referred to F in the %a'e of Hyder of Hyder Consulting *+- !imited v Governor, State State of (rissa %roug% C%ief /ngineer #0 , the Supreme Court referred to la%&:' ?aw Di%tionary for %larifi%ation when the Ar-itration and Con%iliation A%t, 1((+, wa' 'ilent a' to the meanin. of the term' 'um and intere't" inter e't" Similarly, the Supreme Court ha' al'o turned to la%&:' ?aw Di%tionary to under'tand the meanin. of term' li&e ;findin.:2), ;preponderan%e of e!iden%e: 2(, ;'tatutory lien:30, and 'o on for !ariou' 2+ The Trade ar&' A%t, No" 67 of 1(((, V2($+ $1(((" 27 yder Con'ultin. $@H ?imited ! o!ernor, State of Gri''a Throu.h Chief
other term' the meanin. of whi%h i' either not %larified in the .i!en 'tatute or to appre%iate the meanin. of whi%h a %ontetual under'tand i' re=uired 31" Therefore the %our'e of trade %an now -e defined a' ;what i' %u'tomarily or ordinarily done in the mana.ement of trade or -u'ine'': 32" It i' the appellant:' 'u-mi''ion that ad!erti'in. mo't definitely %ome' under thi' definition" Thi' i' -e%au'e throu.h .eneral pra%ti%e, it i' o-'er!a-le that ad!erti'in. %on'titute' an e''ential and %u'tomary feature in the mana.ement of any -u'ine'' today, e'pe%ially if that -u'ine'' i' operatin. on a '%ale where it' %ompetitor' are 'pendin. lar.e amount' of money on ad!erti'in." It %an -e o-'er!ed that the %ompetitor in thi' %a'e had 'pent one %rore rupee' a' ad!erti'in. ependiture in thi' year it'elf" Thi' point' toward' the fa%t that ad!erti'in. wa' %u'tomary or epe%ted in thi' trade or -u'ine''" 8inally, it ha' -een held in the %a'e %a 'e of Shell Company Au'tralia ?td" !" <''o Standard Gil $Au'tralia ?td that the u'e of mar& in ad!erti'ement i' u'e in %our'e of trade" In the Interflora %a'e Interflora %a'e it wa' held that u'e -y the ad!erti'er of a 'i.n a' a &eyword in the %ontet of an internet referen%in. 'er!i%e i' the mean' to tri..er the di'play of it' ad!erti'ement and 'o doe' %on'titute u'e of the 'i.n in the %our'e of trade in relation to the .ood' or 'er!i%e' 'o ad!erti'edO" Similarly, in the %a'e of *e'%ue%om Corp" !" oo.le In%" it wa' held that u'in. a trademar& a' a &eyword i' a u'e in %ommer%e" The'e Kud.ement', while not -indin., do hold per'ua'i!e !alue, and the appellant re=ue't' the Court to %on'ider thi' authoritati!e" C. ARNAB CANNOT USE THE DEFENCE OF HAVING USED ONLY PART OF THE TRADEMARK TRADEMARK
a) The re"'+$ re"'+$e+# e+# !" -"!+ -"!+ #he e+#!re e+#!re #ra$e%ar&, #ra$e%ar&, +'# +'# ar# '( !#
A%%ordin. to Se%tion 17$1 33, when a trade mar& %on'i't' of 'e!eral matter', it' re.i'tration 'hall %onfer on the proprietor e%lu'i!e ri.ht to the u'e of the trade mar& ta&en a' a whole" 31 HamalKit Sin.h ! Sara-Kit Sin.h, $2016 SC 577 IndlawQ a'ha a'ha G!er'ea' and Gther' ! Commi''ioner of Sale' Ta and Gther', $200) SC 1263 IndlawQ Da'hrath *up'in.h *athod ! State of ahara'htra and another, $2016 SC 6(6 IndlawQ 4t% India ?td" ! Central
Su-'e%tion 236 of the 'ame 'e%tion epound' on that -y 'ayin. that when a trademar& %ontain' any part whi%h i' not the 'u-Ke%t of a 'eparate appli%ation -y the proprietor for re.i'tration a' a trade mar& or whi%h i' not 'eparately re.i'tered -y the proprietor a' a trade mar& or whi%h %ontain' any matter whi%h i' %ommon to the trade or i' otherwi'e of a non > di'tin%ti!e %hara%ter $a %ontain' any part>>>> $i whi%h i' not the 'u-Ke%t of a 'eparate appli%ation -y the proprietor for re.i'tration a' a trade mar&M or $ii whi%h i' not 'eparately re.i'tered -y the proprietor a' a trade mar& M or $- Contain any matter whi%h i' %ommon to the trade or i' otherwi'e of a non > di'tin%ti!e %hara%ter, then the re.i'tration thereof 'hall not %onfer any e%lu'i!e ri.ht in the matter formin. only a part of the whole of the trade mar& 'o re.i'tered" It i' the appellant:' 'u-mi''ion that thi' 'e%tion doe' not pro!ide an ade=uate defen%e for the re'pondent" The rationale -ehind thi' i' 'imple F while a part of a trademar& i' not prote%ted and in thi' %a'e there i' no rea'on to -elie!e that the proprietor ha' re.i'tered it 'eparately a' a trademar&, if one i' to eamine e amine the way the me%hani'm me% hani'm of Ad9er-a Ad9er-a wor&' there i' an o-!iou' %a'e to -e made out for infrin.ement" The way the me%hani'm wor&' i' if any %om-ination of word' out of the 50 &eyword' that ha!e -een -ou.ht -y the re'pondent i' entered into /oole, then it will 'how the we-'ite of the re'pondent a' a re'ult35" Thi' in%lude' a po''i-le '%enario where the u'er may type in ;ur.wala:' e't utter Chi%&en: and -e dire%ted to ;Arna-:' utter Chi%&en:, a' that will -e the re'ult on the !ery top in %a'e of 'u%h a 'ear%h" Su%h a %a'e i' %learly a %a'e of trademar& infrin.ement, with Arno-:' trademar& -ein. infrin.ed" ;ur.wala:' e't utter Chi%&en: i' the entire trademar& of the appellant3+ F therefore, when a u'er enter' that into /oole and .et' Arna-:' we-'ite a' a re'ult, it i'n:t a part of Arna-:' Arna-:' trademar& -ein. infrin.ed, -ut hi' entire trademar&" The pur%ha'e of the'e four &eyword' i' without a dou-t %au'in. an infrin.ement of Arno-:' %omplete trademar&" Therefore Arna- %annot u'e the defen%e of Arno- not ha!in. e%lu'i!e ri.ht o!er part of hi' trademar&" 1) Ee+ !( #he #he re"'+$e+# re"'+$e+# !" he*$ he*$ #' 1e -"!+ -"!+ '+*7 a ar# ar# '( #he #ra$e%ar&, #ra$e%ar&,
36 The Trade ar&' A%t, No" 67 of 1(((, V17$2 $1(((" 35 8a%t'heet 2 line )" 3+ 8a%t'heet 3 line 17" 2 | 4 a . e
!# !" "#!** a !'*a#!'+
Su-'e%tion 2 of Se%tion 17 37 'ay' that when a trademar& %ontain' any part whi%h i' not the 'u-Ke%t of a 'eparate appli%ation -y the proprietor for re.i'tration a' a trade mar& or whi%h i' not 'eparately re.i'tered -y the proprietor a' a trade mar& or whi%h %ontain' any matter whi%h i' %ommon to the trade or i' otherwi'e of a non > di'tin%ti!e %hara%ter then that the trademar& holder doe' not po''e'' any &ind of e%lu'i!e ri.ht o!er that part of a trademar&" It i' the 'u-mi''ion of the appellant that part' of the trademar& ha!e in thi' %a'e o-tained a di'tin%ti!e %hara%ter, whi%h would ta&e them out of the am-it of Se%tion 17" The appellant relie' on the %a'e of Three>N>4rodu%t' 4ri!ate ?imited !
37 The Trade ar&' A%t, No" 67 of 1(((, V17$2 $1(((" 3) Three>N>4rodu%t' 4ri!ate ?imited !
more when it %ome' to C, a' the fa%t that it i' an etremely popular 60 lo%al %hain mean' that it i' e!en li&elier to po''e'' a 'tron. hold o!er it' %on'umer': p'y%he, and u'a.e of any part of the trade name will li&ely %au'e re%allin. of C due to the part' of the mar& ha!in. attained a di'tin%ti!e nature -y them'el!e'" oreo!er, in the %a'e of Ala&nanda Cement 4ri!ate ?imited and another ! @ltrate%h Cement ?imited61 it wa' held that the plaintiff %an 'how that one de'%ripti!e part i' in'epara-le from the re.i'tered whole mar&O, in whi%h %a'e 'u%h a mar& would no lon.er %ome under the Kuri'di%tion of Se%tion 17" Thi' i' -e%au'e 'in%e a de'%ripti!e part i' no lon.er lon.er merely a part of a trademar& i"e" the trademar& doe' not %on'i't of many part' -ut of a whole, a' Ku't ta&in. away the part would ta&e away the meanin. of the trademar&" 8or the trademar& to po''e'' any meanin. at all, the de'%ripti!e part %annot -e 'eparated from it i"e" the de'%ripti!e part i' in'epara-le from the re.i'tered whole mar&"O Thi' i' true in our %a'e" The de'%ripti!e part of the trademar& in thi' %a'e i' e't utter Chi%&en" It i' the appellant': 'u-mi''ion that thi' phra'e i' in'epara-le from the re.i'tered whole mar&" The rationale -ehind thi' i' %lear F the word ur.wala:' a' of it'elf ha' no meanin. in the mind of a %on'umer" It i' merely the po''e''i!e form of 'urname" owe!er, when the word ur.wala:' i' atta%hed to the de'%ripti!e phra'e e't utter Chi%&en, the %om-ined epre''ion, ur.wala:' e't utter Chi%&en denote' 'omethin." Thi' whole trademar& ha' %lear meanin. F it refer' to the -utter %hi%&en -ein. 'old -y a !endor named ur.wala, and %laim' that thi' aforementioned %hi%&en i' the -e't in term' of =uality" *emo!in. any one of the word' would mean that the trademar& doe' not %on!ey the meanin. that it i' meant to %on!ey F for in'tan%e, ur.wala:' e't utter doe' not %on!ey nearly the 'ame meanin. a' ur.wala:' e't utter Chi%&en" It i' therefore the appellant:' 'u-mi''ion that in thi' %a'e 'in%e the de'%ripti!e part i' in'epara-le from the re.i'tered whole mar&, the re'pondent %annot u'e 'e%tion 17 a' a 'hield" D. 8OO8LE CANNOT USE ITS DEFENCE OF BEING MERELY A SEARCH ENGINE AND PERFORMING THE PERFORMING THE FUNCTIONS OF A DIRECTORY
60 8a%t'heet 3 line 3" 61 Ala&nanda Cement 4ri!ate ?imited and another ! @ltrate%h Cement ?imited, $2011 @ 1130 Indlaw" Indlaw"
2+ | 4 a . e
Sellin. off of &eyword' %an al'o -e 'aid to -e in the %our'e of trade when it %ome' to the definition .i!en -y la%&:' ?aw Di%tionary 62$the authoritati!e !alue of whi%h the appellant ha' already e'ta-li'hed F it i' ;what i' %u'tomarily or ordinarily done in the mana.ement of trade or -u'ine'':" Thi' %an -e under'tood -y the fa%t that 'ear%h en.ine' do ordinarily 'ell &eyword' in the %our'e of -u'ine'' F an eample %an -e the Adord' Adord' '%heme 63 %arried out -y oo.le" The appellant 'u-mit' that in thi' %a'e /oole o!er'hot it' fun%tion' a' a mere 'ear%h en.ine whi%h doe' the Ko- of a dire%tory and therefore %annot -e 'aid to -e immune from lia-ility" Gne mu't fir't -e.in -y eaminin. the meanin. of the defen%e ta&en -y /oole F that i' to 'ay, why doe' -ein. a 'ear%h en.ine whi%h perform' the fun%tion' of a dire%tory eempt /oole from lia-ilityR Gne mu't refer to the Amendment of the IT A%t in 200), whi%h defined an intermediary66 a' follow'M UIntermediaryU with re'pe%t to any parti%ular ele%troni% re%ord', mean' any per'on who on -ehalf of another per'on re%ei!e', 'tore' or tran'mit' that re%ord or pro!ide' any 'er!i%e with re'pe%t to that re%ord and in%lude' tele%om 'er!i%e pro!ider', networ& 'er!i%e pro!ider', internet 'er!i%e pro!ider', we- ho'tin. 'er!i%e pro!ider', 'ear%h en.ine', online payment 'ite', online>au%tion 'ite', online mar&et pla%e' and %y-er %afe'" Se%tion 7($1 of the IT A%t A%t65 'ay' that an intermediary 'hall not -e lia-le for any third party information, data, or %ommuni%ation lin& ho'ted -y him" Therefore, /oole:' rationale i' that due to it' le.al 'tatu' a' that of an intermediary, it %annot -e held lia-le for the data ho'ted -y it" It i' important to note, howe!er, that %ertain e%eption' to thi' .eneral eemption %lau'e ha!e -een made it the IT A%t A%t it'elf" Se%tion 7($2$a6+ 'ay' that the eemption from lia-ility i' .ranted only if the fun%tion of the intermediary i' limited to pro!idin. a%%e'' to a %ommuni%ation 'y'tem o!er whi%h 62 la%&:' ?aw Di%tionary 352 $+th ed" 1((0" 63
information made a!aila-le -y third partie' i' tran'mitted or temporarily 'tored" In thi' %a'e, it %an -e 'tated that /oole did not merely limit it'elf to pro!idin. a%%e'' to a %ommuni%ation 'y'tem" In'tead, it %ondu%ted an au%tion of 'ort' to modify the re'ult' whi%h %an -e found on the %ommuni%ation 'y'tem67" oreo!er, when .i!en noti%e that %ontent' on it' we-'ite were !iolatin. a re.i'tered trademar& 6), it 'ent -a%& it' own le.al opinion 'ayin. that the %ontent' were not doin. 'o 6(" Thi' in no way %an -e 'aid to -e limited to pro!idin. a%%e'' to a %ommuni%ation 'y'tem" Sin%e it' a%tion wa' not limited to pro!idin. a%%e'' to a %ommuni%ation 'y'tem, it %annot %laim % laim an eemption from lia-ility" %lau'e' under whi%h /oole a' an intermediary %an -e held to ha!e !oided it' eemption from lia-ility"
6+ The Information Te%hnolo.y $Amendment $Amendment A%t, No" 10 of 200(, V7($2$a $200)" 67 8a%t'heet + line 2" 6) 8a%t'heet 7 line +" 6( 8a%t'heet ) line 2" 50 The Information Te%hnolo.y $Amendment $Amendment A%t, No" 10 of 200(, V7($2$-$iii $200)" 51 8a%t'heet + line 2" 52 8a%t'heet 2 line 13" 31 | 4 a . e
A%%ordin. Se%tion 7($3$a, the intermediary 'hall not -e eempt from lia-ility if it ha' %on'pired or a-etted or aided or indu%ed whether -y threat' or promi'e or otherwi'e in the %ommi''ion of the unlawful a%t 53" In thi' %a'e, it %an -e 'aid without a 'hadow of dou-t that the intermediary a-etted the %ommi''ion of the unlawful a%t" Se%tion 107 of the Indian 4enal Code 'ay'56 that one a-et' the doin. of a thin. if he intentionally aid', -y any a%t or ille.al omi''ion, the doin. of that thin." y the a%t of au%tionin. off the &eyword in =ue'tion, and in fa%t per'onally %ondu%tin. the au%tion, it %an -e 'aid without a 'hadow of dou-t that /oole i' aidin. the doin. of thi' a%t $the a%t here -ein. the infrin.ement of trademar& whi%h i' ta&in. pla%e" The fa%t that they had full &nowled.e and intention %an -e inferred form the fa%t that they had noti%e and nonethele'' went ahead with allowin. the'e &eyword' to %ontinue -ein. u'ed" Therefore, under Se%tion 7($3$a, 7($3$a, /oole i' not eempt from lia-ility" lia-ility" Se%tion 3$- 'ay' that if upon re%ei!in. a%tual &nowled.e, or on -ein. notified -y the appropriate o!ernment or it' a.en%y that any information, data or %ommuni%ation lin& re'idin. in or %onne%ted to a %omputer re'our%e %ontrolled -y the intermediary i' -ein. u'ed to %ommit the unlawful a%t, the intermediary fail' to epeditiou'ly remo!e or di'a-le a%%e'' to that material on that re'our%e without !itiatin. the e!iden%e in any manner, then the intermediary !oid' it' eemption from lia-ility55" In thi' %a'e, the fir't part of thi' 'e%tion i' appli%a-le F /oole re%ei!ed a%tual &nowled.e that a %omputer re'our%e -ein. %ontrolled -y it wa' -ein. u'ed to %ommit an unlawful a%t 5+" owe!er, at thi' point, it refu'ed to 'tep in and epeditiou'ly remo!e a%%e'' to that material" In'tead, it went 'o far a' to u'e it' own le.al opinion a' to whether or not the material in =ue'tion wa' unlawful 57" Thi' i' 'omethin. whi%h it i' nowhere empowered to do" Gn -ein. made aware -y the appellant that it wa' %ontri-utin. to infrin.ement, it 'hould ha!e di'a-led a%%e'' to the unlawful material" Sin%e it failed to do that, it i' the appellant:' 'u-mi''ion that it ha' !oided it' eemption from lia-ility"
53 The Information Te%hnolo.y $Amendment $Amendment A%t, No" 10 of 200(, V7($3$a $200)" 56 The Indian 4enal Code, No" 65 of 1)+0, V107 $1)+0" 55 The Information Te%hnolo.y $Amendment $Amendment A%t, No" 10 of 200(, V7($3$- $200)" 5+ 8a%t'heet 7 line +" 57 8a%t'heet ) line 2" 32 | 4 a . e
oreo!er, the Intermediarie' uideline' *ule', 2011, 'ay that the intermediary ha' an o-li.ation to inform the u'er' of %omputer re'our%e not to ho't, di'play, upload, modify, modify, pu-li'h, tran'mit, update or 'hare any information that infrin.e' any patent, trademar&, %opyri.ht or other proprietary ri.ht'" 5) owe!er, if the intermediary, intermediar y, on who'e %omputer 'y'tem the information i' 'tored or ho'ted or pu-li'hed, upon o-tainin. &nowled.e -y it'elf or -een -rou.ht to a%tual &nowled.e -y an affe%ted per'on in writin. or throu.h email 'i.ned with ele%troni% 'i.nature a-out any 'u%h information a' mentioned a-o!e, 'hall a%t within thirty 'i hour' and where appli%a-le, wor& with u'er or owner of 'u%h information to di'a-le 'u%h information5(" It i' %lear that in thi' %a'e /oole ha' not fulfilled it' fun%tion of a%tin. the way an intermediary i' le.ally o-li.ated to a%t" It had -een -rou.ht to it' noti%e -y the affe%ted party i"e" the appellant in writin. that it wa' in fa%t ho'tin. information wa' !iolatory of the trademar& held -y the appellant" owe!er, rather than a%t upon thi' information within thirty 'i hour', /oole did not a%t" In'tead, it replied nearly a month later 'tatin. that it did not -elie!e that the a%t in =ue'tion %on'tituted a trademar& !iolation" There are two pro-lem' pro-lem' here F fir'tly, the fa%t that /oole i' 'uppo'ed to a%t within thirty 'i hour', whi%h it did did not do" In'tead, it did nothin. a-out the pro-lem for nearly a month" Se%ondly, after ta&in. nearly a month, rather than a%tin. the way an intermediary i' 'uppo'ed to and lea!in. the le.al di'pute to the Court, /oole inter!ened and -a'ed on it' own le.al opinion %ho'e to not ta&e down the infrin.in. &eyword'" E. THIS INFRINGEMENT IS LIKELY TO CAUSE CONFUSION OR CAUSE THE CONSUMER TO BELIEVE THAT BELIEVE THAT THERE THERE IS AN ASSOCIATION WITH THE WITH THE REGISTERED TRADEMA REGISTERED TRADEMARK RK
8inally, it i' the appellant:' 'u-mi''ion that in thi' %a 'e the mar& of Arna- whi%h -e%au'e of it' 'imilarity to the re.i'tered trade mar& of Arno- and the identity or 'imilarity of the .ood' or 'er!i%e' %o!ered -y 'u%h re.i'tered trade mar& i' li&ely to %au'e %onfu'ion on the part of the pu-li%, or whi%h i' li&ely to ha!e an a''o%iation with the re.i'tered trade mar&"
5) The Information Te%hnolo.y Te%hnolo.y $Intermediarie' .uideline' *ule', 2011, 2011, aette of India, 'e%tion 3$2$- $Apr 11, 2011" 5( The Information Te%hnolo.y Te%hnolo.y $Intermediarie' .uideline' *ule', 2011, 2011, aette of India, 'e%tion 3$3$6 $Apr 11, 2011" 33 | 4 a . e
There i' no .old 'tandard for the under'tandin. of trademar&' -ein. li&ely to %au'e %onfu'ion" In thi' %a'e, it i' ne%e''ary to fall -a%& upon pa't de%i'ion' whi%h ha!e -een made -y thi' honoura-le Court and loo& loo& upon them a' pre%eden%e" In the %a'e of Delhi 4u-li% S%hool So%iety So%iet y ! D 4 S Tru't+0, the plaintiff, the Delhi 4u-li% S%hool So%iety, wa' .ranted an inKun%tion" Thi' de'pite the fa%t that the two trademar&', in term' of de'i.n at lea't, were not de%epti!ely 'imilar" Thi' wa' -e%au'e of the fa%t that the two 'o%ietie' wor&ed in a 'imilar line i"e" they were -oth en.a.ed in the 'ettin. up of '%hool'" Thi', alon. with the 'imilarity of the name' -etween the two, wa' found to ha!e enou.h 'imilarity a' to %au'e %onfu'ion amon.'t the %on'umer' at lar.e" Sin%e out of the two the Delhi 4u-li% S%hool So%iety wa' the -etter e'ta-li'hed, it wa' under'tood that allowin. the D4S Tru't to %arry on with it' %ho'en name %ould %arry irrepara-le dama.e to the Delhi 4u-li% S%hool So%iety, a' it wa' po''i-le that pro'pe%ti!e %on'umer' would -e mi'led into -elie!in. that the '%hool' ' %hool' -ein. run -y the D4S Tru't were in fa%t Delhi 4u-li% S%hool'" Thi' %a'e hold' dire%t appli%ation to our %a'e" C and AC are two food -rand' whi%h are owned -y two -rother', out of whi%h C i' -y far the -etter &nown and more e'ta-li'hed" In 'u%h a '%enario, when a %on'umer 'ear%he' for ur.wala:' e't utter Chi%&en and the top re'ult i' Arna-:' utter Chi%&en, it i' li&ely that he will -e mi'led into -elie!in. that Arna-:' Arna-:' utter Chi%&en i' the fla.-earer fla.-earer of the ur.wala %hi%&en -rand $whi%h the -rother': father 'tarted when in reality it i' C whi%h hold' that po'ition" Therefore, he i' li&ely to -uy %hi%&en from AC, a''umin. that it hold' the mar&et po'ition and 'ell' the &ind of %hi%&en that i' in fa%t C:' domain" The fa%t that thi' i' li&ely to lead to %onfu'ion i' ea%er-ated -y the fa%t that -oth the %ompanie' operate in the ea%t 'ame mar&et in term' of the o-Ke%t they are 'ellin., in%rea'in. manifold the po''i-ility of there -ein. %onfu'ion in the mind of the -uyer" Another fa%tor that mu't -e %on'idered i' that of initial intere't %onfu'ion" Initial intere't %onfu'ion i' a ;-ait and 'wit%h: ta%ti% that permit' a %ompetitor to lure %on'umer' away from a 'er!i%e pro!ider -y pa''in. off 'er!i%e' a' tho'e of the pro!ider, notwith'tandin. that the %onfu'ion i' di'pelled -y the time of 'ale" 8or eample, the li&elihood that a potential pur%ha'er of a 'pe%iali'ed %omputer pro.ram may -e drawn to the Kunior u'er, u'er, thin&in. it wa' +0 Delhi 4u-li% S%hool So%iety ! D 4 S Tru't, $2012 D
the 'enior u'er, i' a%tiona-le U%onfu'ionU e!en if o!er the %our'e of 'e!eral month' of the pur%ha'in. de%i'ion>ma&in. pro%e'', the -uyer' %onfu'ion i' di''ipated" The The analo.y to trademar& initial intere't %onfu'ion i' a Ko-'ee&er who mi'repre'ent' edu%ational -a%&.round on a re'ume, o-tain' an inter!iew and at the inter!iew eplain' that the inflated re'ume %laim i' a mi'ta&e or a typo" The mi'repre'entation ha' ena-led the Ko->'ee&in. to o-tain a %o!eted inter!iew, a %lear ad!anta.e o!er other' with the 'ame -a%&.round who hone'tly 'tated their edu%ational a%hie!ement' on their re'ume'" In 'u%h a 'ituation, it i' not po''i-le to 'ay that the mi'repre'entation %au'ed no %ompetiti!e dama.e" dama.e "+1 oreo!er, it wa' held in the %a'e of orli%&' ?imited and Gther' ! @ttam Sadhu&an +2 that intent doe' not matter"
+1 6 " %CA*T, T *AD<A*HS AND @ N8AI* N8AI* C CG423, $Clar& oardman Calla.han $1()) $6 th
&eyword ur.wala +3 i' -ein. u'ed -y the re'pondent to ad!erti'e hi' produ%t, it 'eem' li&ely that the %on'umer %ould draw an inferen%e that the -utter %hi%&en -ein. 'old -y Arna- i' a part of the ur.wala -rand of -utter %hi%&en" Therefore, it 'eem' li&ely that the %on'umer will thin& that there i' li&ely to ha!e an a''o%iation with the re.i'tered trade mar&, and therefore, on thi' .round, the re'pondent i' .uilty of infrin.in. the appellant:' trademar&" In the %a'e of a'hod a'hodaa Super Spe%iality o'pital', o'pital ', a partner'hip firm, f irm, repre'ented -y it' partner " De!ender *ao ! a'hoda a'hoda edi%are edi%are and *e'ear%h Centre 4ri!ate ?imited, a %ompany re.i'tered under Companie' A%t, 1(5+, ha!in. it' re.i'tered offi%e at New Delhi, repre'ented -y It' Dire%tor and another +6, it wa' held that a'hoda a'hoda had e'ta-li'hed it'elf and made it' name in the indu'try of health%are" It now po''e''ed a %ertain reputation in thi' field" a'hoda a'hoda edi%are wa' not 'tri%tly the 'ame a' a'hoda a'hoda Super Spe%iality o'pital', in fa%t it wa' di'tin.ui'hed in that it wa' more re'ear%h fo%u'ed a' oppo'ed to runnin. a 'lew of ho'pital'" De'pite thi' fa%t, howe!er, a'hoda a'hoda o'pital': appli%ation for an inKun%tion owin. to trademar& infrin.ement wa' .ranted" Thi' i' -e%au'e -e% au'e due to a'hoda a'hoda o'pital': prior reputation in the medi%al field, it %ould lead to %onfu'ion and e!en lead to %on'umer' thin&in. that there i' an a''o%iation a ''o%iation -etween a'hoda a'hoda Super Spe%iality Spe%ialit y o'pital' and a'hoda a'hoda edi%are and *e'ear%h Centre 4ri!ate ?imited" In our %a'e, the two %ompanie' are e!en in the ea%t 'ame field i"e" the 'ale of the 'ame food produ%t" Thi' mean' that it i' e!en li&elier that the %on'umer may end up up thin&in. that the two %ompanie' are a''o%iated, and -y doin. 'o, the re'pondent will -enefit from the pre'ti.e and e'ta-li'hed .oodwill of the appellant in the Delhi area" III.ZOOZLE
HAS ENTERED INTO ANTI COMPETITIVE AGREEMENTS WITH THE USERS
OF THE ADVERBA SCHEME
It i' 'u-mitted that /oole ha' entered into a.reement' with u'er' of it' Ad9er-a '%heme that ha!e an appre%ia-le ad!er'e effe%t on %ompetition" Furt%er %ompetition" Furt%er , the a.reement re'ult' in unfair %ompetition in the rele!ant mar&et" +3 8a%t'heet + line 3" +6 a'ho a'hoda da Super Spe%iality o'pital', o'pital' , a partner'hip firm, fir m, repre'ented -y it' partner " De!ender *ao ! a'hoda a'hoda edi%are and *e'ear%h Centre 4ri!ate ?imited, a %ompany re.i'tered under Companie' A%t, 1(5+, ha!in. it' re.i'tered offi%e at New Delhi, repre'ented -y It' Dire%tor and another, $2010 A4 A4 536 Indlaw" 36 | 4 a . e
A. THE AGREEMENT BETWEEN 8OO8LE AND USERS OF THE ADVERBA SCHEME HAS AN APPRECIABLE ADVERSE EFFECT ON COMPETITION
An a.reement entered into -etween two per'on' at different le!el' or 'ta.e' in different mar&et' that %au'e' or i' li&ely to %au'e an appre%ia-le ad!er'e effe%t on %ompetition in India i' in !iolation !iolation of Se%tion 3$6 of the Competition Competition a%t" +5 Su%h a.reement' are !oid" ++ Thi' 'e%tion i' not ehau'ti!e and hen%e %o!er' all a.reement' that are deemed to ha!e an appre%ia-le appre%ia-le ad!er'e effe%t on %ompetition %ompetition -y mea'urin. mea'urin. them a.ain't a.ain't fa%tor' enumerated enumerated under Se%tion 1($3 of the Competition A%t"+7 In the pre'ent %a'e, % a'e, /oole enter' into an a.reement with it' %on'umer' under the Ad9er-a Ad9er-a '%heme to ad!erti'e their we-'ite"+) The '%heme pro!ide' to the hi.he't -idder for a &eywordQ the opportunity to tri..er a 'pe%ifi% re'ult a-o!e the or.ani% 'ear%h li't .enerated when a u'er enter' a %ertain =uery into /oole:' 'ear%h en.ine" +( Thi' re'ult i' 'eparated from the or.ani% 'ear%h li't -y -ein. hi.hli.hted in li.ht yellow and -ein. termed a' 'u..e'ted po't'O, with the word' 'pon'ored ad'O -ein. written alon.'ide them" 70 It i' 'u-mitted that de'pite thi' 'eparation -etween ad!erti'ement' and or.ani% re'ult' %onfu'ion may -e %reated in the mind' of the %on'umer' a' to whether the'e po't' are 'u..e'ted -y /oole, or are 'imply proffered a' ad!erti'ement'" 71 /oole 'eem' to, in the the eye' of a rational u'erQ -e profferin. a parti%ular re'ult a' the mo't appropriate when the =uery =uery entered entered on the we-'ite we-'ite i' 'pe%ifi 'pe%ifi%ally %ally for anothe anotherr 'er!i%e 'er!i%e"" The'e The'e po't' po't' do not +5 ultiple A''o%iation of India !" @nited 4rodu%er'EDi'tri-utor' 8orum and Gther', $2011 $2011 Indlaw 1)" ++ The Competition A%t, No" 12 of 2003, V 3$2 $2002" +7 South A'ia ?4 Company 4!t" ?td" !" Competition Competition Commi''ion of India, $2016 Indlaw 2530Q NeeraK alhotra, Ad!o%ate !" Deut'%he 4o't an& ome 8inan%e ?imited $Deut'%he an& and Gther', $2010 Indlaw 2)" +) 8a%t'heet, 1 +" +( 8a%t'heet, 1 2" 70 8a%t'heet, 1 2" 71 arner arner ro'"
ne%e''arily ne%e''arily ha!e to lin&ed to the -idder': -u'ine'' -u'ine'' and %an -e tri..ered -y any &eyword, &eyword, re.ardle'' of whether they are a''o%iated with the we-'ite that it -ein. di'played a' part of the ad!erti'ement" The ad!erti'er 'eem' to -e endea!ourin. to reap where $he ha' not 'ownO72 -y eploitin. the .oodwill of a %ompetitor to ad!erti'e hi' own -u'ine''" en%e, /oole i' dire%tin. a %on'umer of it' 'ear%h en.ine 'er!i%e' to the we-'ite of per'on', with whom it ha' entered into a %ontra%tQ di're.ardin. the or.ani% 'ear%h li't and the al.orithm therein" Thi' ne.ati!ely affe%t' ei'tin. %ompetitor' in the mar&et when the rea'on' for ad!erti'in. one:' we-'ite online are %on'idered, whi%h in%lude the deli!ery of rele!ant, tailored and %on'umer 'pe%ifi% 'er!i%e' to a wide mar&et of %on'umer' on the internet" 73 The appre%ia-le ad!er'e effe%t that an a.reement ha' on %ompetition i' mea'ured on the -a'i' of a..ra!atin. and amelioratin. fa%tor' 'pe%ified under 'e%tion 1($3"76 a) Dr!!+ Dr!!+ E4!"#!+ E4!"#!+ C'%e#!#'r" C'%e#!#'r" '-# '( #he %ar&e# %ar&e#
y !irtue of the Ad9er-a '%heme, ei'tin. %ompetitor' in the mar&et are li&ely to -e dri!en dri!en out a' the purpo'e purpo'e with whi%h they pro!ide pro!ide their 'er!i%e' 'er!i%e' to %u'tomer' %u'tomer' throu.h an online online interm intermedia ediary ry i' -ein. -ein. nullifi nullified" ed" Thi' i' 'o -e%au' -e%au'ee the interme intermedia diary ry it'elf it'elf i' propa.atin. one amon.'t all the %ompetitor' a' repre'entati!e of that mar&et, -y termin. ter min. the 'ear%h re'ult %ontainin. it' we- lin& a' a 'u..e'ted po'tO there-y implyin. it' .reater rele!an%e and a%%ompanyin. importan%e to the %on'umer "75 en%e ei'tin. %ompetitor' are di'allowed !i'i-ility in the mar&et -y !irtue of ha!in. a 'in.le %ompetitor -e .i!en the opportunity to ad!erti'e their own we-'ite at the epen'e of the .oodwill of the trademar& of the former" Thi' re'ult' in their potential %u'tomer' -ein. poa%hed and hen%e may lead to them -ein. dri!en out of the mar&et" 1) Crea#!'+ Crea#!'+ '( 1arr!er" 1arr!er" #' +e6 e+#ra+# e+#ra+#" " !+ #he %ar& %ar&e# e#
72 International New' Ser!i%e !" A''o%iated 4re'', 26) @S 215 $1(1)Q *oy <port Company <'ta-li'hment of 9adu, 9adu, ?ie%hten'tein, et e t al !" Colum-ia Colum-ia road%a'tin. Sy'tem In%" +72 8"2d 8"2d 10(5 $1()2" 73 1>)00 Conta%t' In%" !" ?en'"%om In%" 722 8"3d 122( $10 th Cir" 2013" 76 ultiple A''o%iation of India !" @nited 4rodu%er'EDi'tri-utor' 8orum and Gther', $2011 $2011 Indlaw 1)" 75 8a%t'heet, 1 2" 3 | 4 a . e
oreo!er, -arrier' are %reated to new entrant' into thi' mar&et a' it i' -ein. polaried in fa!our of the per'on with whom /oole entered into an a.reement under the Ad9er-a '%heme"
Amelioratin. fa%tor'77 'u%h a' tho'e 'pe%ified in 'u- 'e%tion' $d to $f of the 'e%tion are inappli%a-le and hen%e in'uffi%ient defen%e' to hide -ehind, a' there i' no impro!ement in produ%tion or di'tri-ution of .ood' and neither i' there any promotion of te%hni%al and '%ientifi% de!elopment" hile the re'pondent may ar.ue that there i' an a%%rual of -enefit' to %on'umer', it i' 'u-mitted that a' the %on'umer' are -ein. mi'led into -elie!in. that their mo't appropriate 'ear%h re'pon'e i' 'omethin. other than what it a%tually i'Q and that their re'ult' are not they are a%tually loo&in. for F they do not re%ei!e any -enefit under thi' '%heme either" en%e, it i' 'u-mitted that the a.reement a.ree ment -etween /oole and u'er' u'er ' of it' Ad9er-a Ad9er-a '%heme enter doe' indeed ha!e an appre%ia-le ad!er'e effe%t on %ompetition" B. THE AGREEMENT RESULTS IN UNFAIR COMPETITION
@nfair trade pra%ti%e' are dealt with under the %on'umer prote%tion a%t and are under'tood a' trade pra%ti%e' that adopt unfair or de%epti!e pra%ti%e' 'u%h a' fal'e repre'entation of .ood' or 'er!i%e', for the purpo'e of promotin. the pro!i'ion of 'er!i%e'" 7) The 'ame ha' a wider am-it under Ameri%an and
7+ Infederation ?td" !" oo.le In%", <C $Ch 22(5, $2013" 77 ultiple A''o%iation of India !" @nited 4rodu%er'EDi'tri-utor' 8orum and Gther', $2011 $2011 Indlaw 1)" 7) The Con'umer 4rote%tion A%t, No" +) of 1()+ V 2$1$r $1()+" 3+ | 4 a . e
do%trineO7( that that en%om en%ompa pa''e ''e'' any any form form of %omm %ommer% er%ial ial immo immoral rality ityOO)0 or 'impl 'imply y endea!ourin. to reap where $one ha' not 'ownO )1" In %a'e' 'u%h a' the'e, the =ue'tion i' whether thi' a%ti!ity i' fair %ompetition pre'entin. we- u'er' with u'eful alternati!e' or whether it i' a form of unfair free ridin. on the fame of well &nown mar&'O )2 Intent, hone'ty and 'tate of mind i' al'o an important %on'ideration while determinin. whether whether a trade pra%ti%e i' %on'idered a' unfair ")3 An a.reement entered into under the Ad9er-a '%heme allow' people to ad!erti'e their -u'ine'' on a popular online 'ear%h en.ine -y pur%ha'in. %ertain &eyword' pur'uant to the 'ame" The informant:' trademar&' were u'ed a' &eyword' and on them -ein. entered a' 'ear%h =uerie' dire%ted the potential %u'tomer' to the we-'ite of a %ompetitor" Thi', alon. with with the termino terminolo.y lo.y of the'e the'e paid paid ad!erti ad!erti'em 'ement ent'' a' 'u..e' 'u..e'tedO tedO indi%at indi%atee that that the ad!erti'er 'ee&' to eploit the .oodwill .arnered -y the trademar& of the informant and u'e it for furtherin. hi' own purpo'e" Thi' 'ort of %ommer%ial immorality i' po''i-le only when it i' o-'er!ed a' a %on%erted a%tion under the ae.i' of the Ad9er-a a.reement" It i' thi' a.reement that allow' the ad!erti'ement and -rand' it a' 'u..e'tedO whi%h re'ult' in potential %u'tomer' of the informant who were loo&in. for hi' we-'ite to -e mi'led into that that of anot another herQQ whi% whi%h h amou amount nt'' to unfa unfair ir %omp %ompeti etiti tion on a' one one party party i' ta&i ta&in. n. the the ependiture' ependiture' and la-our' la-our' of anotherO anotherO)6 and mi'appropriatin mi'appropriatin. . $it for the %ommer%ial ad!anta.e of one per'onO )5" 7( *on'on Art etal or&', In% !" i-'on ?i.hter anufa%turin. Co", 15( N""S"2d +0+, $1(57" )0 etropolitan Gpera A''o%iation !" a.ner>Ni%hol' a.ner>Ni%hol' *e%order Corporation 101 N"" N""S"2d 6))" )1 *oy <port Company <'ta-li'hment of 9adu, 9adu, ?ie%hten'tein, et al !" Colum-ia road%a'tin. Sy'tem In%" +72 8"2d 8"2d 10(5 $1()2" )2 Con'im Info 4!t ?td" !" oo.le India 4!t ?td", $2012 Indlaw 2+21" )3 i%heal olterhoff !" @lri%h 8reie'le-en $2002 8"S"*" 8"S"*" 23" )6 orth In%" 1(0 N""S"2d (77, $1(5(" )5 etropolitan Gpera A''o%iation !" a.ner>Ni%hol' a.ner>Ni%hol' *e%order Corporation 15( N"" N""S"2d 6))" 40 | 4 a . e
IV. IV. ZOOZLE
ABUSED ITS DOMINANT POSITION IN THE MARKET
It i' 'u-mitted that /oole dominate' the rele!ant mar&et of online 'ear%h en.ine' and a-u'e' thi' po'ition -y attemptin. to enter another rele!ant mar&et -y le!era.in. it' dominan%e" It denie' %ompetitor' a%%e'' to their rele!ant mar&et' and there-y a-u'e' it' mar&et po'ition" A. THE RELEVANT MARKET
Domi Domina nant nt po'it po'itio ion n i' unde under't r'too ood d a' a po'it po'itio ion n of 'tren 'tren.t .th h that that allo allow' w' it to opera operate te independently of %ompetiti!e for%e' pre!ailin. in the mar&et, or affe%t it' %ompetitor' or %on'umer' in it' fa!our ")+ The a%tual '%ope of a dominant firm:' 'pe%ial re'pon'i-ility mu't -e %on'idered in relation the de.ree of dominan%e held -y that firm and to the 'pe%ial %hara%teri'ti%' of the mar&et whi%h may affe%t the %ompetiti!e 'ituation")7 It i' 'u-mitted that /oole ha' a dominant po'ition in the mar&et in term' of mar&et 'hare, dependen%e of %on'umer' on the enterpri'e, and 'ie and re'our%e' of the enterpri'e" Thi' i' e!iden%ed -y the fa%t that internationally, +0P of people u'e it for their internet 'ear%h =uerie' and in India, more than )0P of people a%%e'' the we-'ite on a daily -a'i'" )) Any ad!erti'in. ad!ert i'in. '%heme on the we-'ite will poten potentially tially rea%h more than )0P of intern internet et u'er' in the %ountry")( It %an -e pre'umed that an entity i' dominant in a parti%ular mar&et in absent abs entia ia any other e!iden%e if it ha' a mar&et 'hare per'i'tently a-o!e 50 per %ent" (0 ar&et 'hare, 'ie, re'our%e' and importan%e of the %ompany are all rele!ant fa%tor' while determ det ermini inin. n. whe whethe therr or not a dom domina inant nt po' po'itio ition n i' enK enKoy oyed ed in a par parti% ti%ula ularr mar mar&et &et"" (1 oreo!er, /oole i' -a'ed in erlin and ma&e' it' pre'en%e felt etremely 'tron.ly in )+ The Competition A%t, No" 12 of 2003, V 6 <planation $a $2002" )7 C>1E3+"(15 Deut'%he 4o't A F Inter%eption of %ro''>-order mai l, 2002 6 C""?"*" 5()" )) 8a%t'heet, 1" )( CG4E5727 i%ro'oftEahooJ i%ro'oftEahooJ $2010" $ 2010" (0 Ca'e C>+2E)+, AH/G Chemie 9 ! Commi''ion, 1((3 5 C""?"*" 215" (1 The Competition A%t, No 12 of 2003, V 1($6, $2002" 41 | 4 a . e
India,(2 whi%h indi%ate' that it i' an international enterpri'e with a .reat deal of re'our%e'" Thu', /oole ha' a !ery hi.h 'ta&e in the mar&et, ha' enou.h re'our%e' and power to -e dominantly influential in international mar&et' and i' depended upon -y a lar.e maKority of %on'umer' in India" (3 All of the'e fa%tor' indi%ate that in term' of online 'ear%h en.ine', /oole doe' enKoy a dominant po'ition in the Indian mar&et" (6 B. ABUSE OF DOMINANT POSITION BY DENYING COMPETITORS MARKET ACCESS TO THE INFORMANT
An enterpri'e i' 'aid to ha!e a-u'ed it' dominant po'ition if it eploit' the 'ame to deny mar&et a%%e'' to it' %ompetitor'"(5 The etent of the dominant firm': 'pe%ial re'pon'i-ility i' mea'ured on the -a'i' of the de.ree of dominan%e held in that mar&et where the %ompetiti!e 'ituation i' -ein. e!aluated" (+ The informant i' denied a%%e'' to the uni=ue mar&et in!ol!ed, re'ultin. in an a-u'e of dominant po'ition" a) The %ar&e# %ar&e# !+ !+ #he ar#!-* ar#!-*ar ar a"e '( '( #he !+('r%a+ !+('r%a+## !" -+!9-e -+!9-e
The mar&et in thi' %a'e i' uni=ue ina'mu%h a' it i' a%%e''ed throu.h utiliin. another 'er!i%e, namely that of online 'ear%h en.ine'" The informant %ompete' with the re'pondent in the pre'ent %a'e in a mar&et in!ol!in. in!ol!in. the 'er!i%e of home deli!ery deli!ery of food -y pla%in. an order online" (7 Cu'tomer' in thi' mar&et are more aware of the trademar&' of the %ompetitor' in!ol!ed than the %ompetitor' them'el!e', and hen%e their only point of a%%e'' to the 'ame i' -y enterin. the'e trademar&' of part' thereof on 'ear%h en.ine', 'ee&in. a parti%ular re'ult" Thu', the'e we-'ite' on the internet %an only -e rea%hed throu.h online 'ear%h en.ine' 'u%h a' that of /oole, a mar&et in whi%h /oole enKoy' dominan%e" (2 8a%t'heet, 1" (3 The Competition A%t, No" 12 of 2003, V 1($6, $2002" (6 See CG4E5727 i%ro'oftEahooJ i%ro'oftEahooJ $2010" (5 The Competition A%t, No" 12 of 2003, V 6$2 $% $2002" (+ See, Hapoor la'' 4ri!ate ?imited !" S%hott la'' India 4ri!ate ?imited, $2013 Indlaw 22" (7 8a%t'heet, 6, 5" 42 | 4 a . e
1) De+!a* De+!a* '( %ar&e %ar&e## ae" ae"" "
The Ad9e Ad9er-a r-a '%heme eploit' thi' po'ition in the mar&et, allowin. the hi.he't -idder in it' au%tion to repre'ent the appellant': we-'ite a' indi%ati!e of their own 'er!i%e'" The online mar&et i' di'tin%t from offline mar&et',() and /oole:' Ad9er-a '%heme di'%riminate' -etween %ompetitor' pro!idin. 'imilar 'er!i%e' online -y mandatorily pla%in. one one o!er the other e!en when that differ' from the or.ani% 'ear%h re'ult'" An a.reement under the Ad9e Ad9er-a '%heme allow' one %ompetitor to ad!erti'e and a nd promote hi' we-'ite a-o!e that of hi' %ompetitor':, and when a 'ear%h i' made 'pe%ifi%ally for the %ompetitor, the ad!erti'er %an promote hi' own -u'ine'' in'tead of the 'ame" In the %a'e of the informant, due to the nature of the Ad9er-a Ad9er-a '%heme and it' allowan%e of re.i'tered trademar&' -ein. pa''ed off a' repre'entati!e of other'Q a potential %u'tomer 'ear%hin. for the we-'ite of the appellant will -e dire%ted toward' that of the re'pondent -y !irtue of it -ein. 'u..e'tedO -y /oole" Con'iderin. that a%%e'' to thi' mar&et i' only throu.h 'u%h 'ear%h en.ine', and a%&nowled.in. /oole:' 'uper dominan%eO (( in the mar&et for the 'ame, the appellant i' denied a%%e'' to thi' mar&et" Cu'tomer' in thi' uni=ue mar&et are pre%luded from -ein. .i!en a%%e'' to the we-'ite of the informant a' it i' lower down in the li't of 'ear%h re'ult' and hen%e le'' li&ely to -e %li%&ed" 100 Thi' i' 'olely -e%au'e of the in!ol!ement of /oole under it' Ad9er-a Ad9er-a '%heme and a' it a %ompetitor a%%e'' to the mar&et, it amount' to an a-u'e of dominant po'ition" C. ABUSE OF DOMINANT POSITION TO POSITION TO ENTER INTO ANOTHER RELEVANT MARKET
Se%tion 6$2$e of the Competition A%t a''ert' that there 'hall -e an a-u'e of dominant po'ition if an enterpri'e or a .roup u'e' it' dominant po'ition in one rele!ant mar&et to enter into, or prote%t another rele!ant mar&et" mar&et "101 It i' ne%e''ary to define two mar&et' 'o a' to e'ta-li'h a-u'e of dominan%e under 'e%tion 6$2$e of the %ompetition a%t" 102 The two () CG4 E6731 oo.leEDou-le Cli%& $200)" (( *i%hard hi'h B Da!id ailey, aile y, Competition law +)1 $7 th ed" 2012" 100 Infederation ?td" !" oo.le In%", <C $Ch 22(5, $2013" 101 Competition A%t, 2002, VV 6$2, 6$2 $e" 102 Ar'hiyat *ail Infra'tru%ture and another !" ini'try of *ailway' *a ilway' and Another, $2012 Indlaw 25" 43 | 4 a . e
mar&e mar&et' t' in the the pre' pre'en entt %a'e %a'e are are tho' tho'ee of onli online ne 'ear%h 'ear%h en.i en.ine ne'' and and onli online ne 'ear% 'ear%h h ad!erti'in. 'er!i%e'"103 /oole entered into the online 'ear%h ad!erti'in. mar&et in 2011" 106 It i' 'u-mitted that /oole, throu.h it' Ad9er-a '%heme a-u'e' it' dominant po'ition a' it u'e' thi' dominan%e in the online 'ear%h en.ine mar&et to enter into another rele!ant mar&et, mar&et, that -ein. that of online online 'ear%h ad!erti'in. ad!erti'in. There i' nothin. nothin. to 'u..e't 'u..e't that there wa'n:t already a mar&et for online 'ear%h ad!erti'in. -efore /oole:' foray into the 'ame"
103 Google Inc. v" Australian Competition and Consumer Consumer Commission $2013 Commission $2013 26( C?* 635Q oined Ca'e' C>23+E0) to C>23)E0), oo.le In%" ?oui' 9uitton, 9uitton, oo.le 8ran%e SA*? !" !" 9iati%um SA and Another, Another, oo.le 8ran%e SA*? !" Ti.er SA*? and Gther', 2010 <"C"*" I> 26+7" 106 8a%t'heet, 2" 105 8a%t'heet, 1, 2" 44 | 4 a . e
PRAYER
FOR RELIEF
herefore in li.ht of the I''ue' In!ol!ed, Ar.ument' Ar.ument' rai'ed, and Authoritie' %ited, r" Arnaur.wala and , the Appellant, re'pe%tfully re=ue't' the Court to adKud.e and de%lare thatM 1" r" r" Arna Arna- ur.wal ur.walaa and /ool /oolee m m infrin. infrin.ed ed the re.i'tered re.i'tered trade trade mar& of the appellant" 2" r" ArnaArna- ur.wala ur.wala and /oole /oole m m pa''ed off off the re'pondent: re'pondent:'' 'er!i%e' 'er!i%e' a' tho'e -elon.in. to the appellant" 3" The AdVerba AdVerba Ad!erti'ement S%heme i' an a-u'e of dominant po'ition -y /oole m" 6" The The a.reem a.reement ent ent enter ered ed into into und under er the the AdVe AdVerba '%heme ha' an appre%ia-le ad!er'e effe%t on %ompetition
All of 2%ic% is respectfully affirmed and submitted, submitted, Gn -ehalf of the Appellant, r Arno- ur.wala"
45 | 4 a . e
