Pass i ngoff
I nt r oducti on Theact i on agai ns tpassi ngoff i sbase d on t hepr i nci pl et hat“ aman may notse l lhi s goods under t he pr e t ence t hat t he y ar et he goods of anot herma man” .( N. R. Dongr ev .Whi r l poolCor por at i on, ( 1996)5 SCC 714. Passi ngoff act i onsi nvol vesi t uat i onsi n whi ch ar epr esent at i on i sma madei n t hecour seoft r adewhi chdece i ve sorcausesc onf usi onam mo ongstcust om me er s. I ti s a speci esofunf ai rt r ade comp mpet i t i on by whi ch one per son seeks t o pr o fitf r o mt her e put at i o no fano t he ri napar t i c ul art r adeorbus i ne s s .I ti s awr ongf uli n comm mmon l aw oft ortandi sf oundedon t hepr i nci pl et hat“ no man i sent i t l edt or epr ese nthi sgoodsasbei ngt hegoodsofanot herman; andnoma mani sper mi t t edt ouseanyma mar k,si gnorsymb mbol ,dev i ceormeans, wher eby wi t houtmaki ng a di r ectr epr esent at i on hi msel ft o a pur c haser whopur c hasesf r om hi m,heenabl essuc hpur chase rt ot el lal i eort omake af al ser epr esent at i on t osome mebodyel sewh whoi st heul t i mat epur chaser .The Tr adeand Mer c handi seMar ksAct ,1958 doesnotdefinepassi ngoff,but onl y pr ovi des t he r ul es ofpr ocedur e and t he r eme medi es avai l abl e.I ti s r e f e r r e dt oi ns e ct i on27( 2) ,134( 1)( c )and135. Se c t i o n 27( 2)s t at e st hatt he r i ght sofact i on agai nstanyper son f orpassi ng off goodsas t hegoodsof ano t he rpe r s o no rt her e me me di e si nr e s pe c tt he r e o f .Se c t i o n 134( 1)( c )r e f e r s t oi nj unc t i o no fc o ur t st ot r ys ui t sf o rpas s i ngo ff ar i s i ngo uto ft heus eof anyt r adema mark.Sect i on 135 speci fiest her eme medi esavai l abl ei nr espectof passi ngoff ari si ngf r om t heuseofat r adema mark. Some met ypesofpassi ngoffi ncl ude: •
Ami sr epr esent at i ont hatoneper son' sgoodsaret hoseofanot her . [ [
A mi sr epr esent at i on t hatoneper son' sgoodsar eofapar t i cul arcl ass orqual i t y .
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A mi sr epr esent at i on t hat a connect i on exi s t s be t ween a per son' s goodsandt hoseofanot herwher et her ei snoact ualconnect i on.
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EVOLUTI ON AND DEVELOPME MENT OF THE CON ONCEPT Li abi l i t y i n t he t or t of passi ng off ul t i mat el y boi l s down t o mi s r e pr e s e nt at i o n.I tal ls t ar t e di nt he17t hc e nt ur y ,i nt hec as e sSo ut he r n v .How andDeanv .St eel.Usual l y ,t hej udgescat egor i se dsuc ht or t sunder decei tordef ama mat i on. Lat e ri nt hee i g ht e e nt hc e nt ur y ,al lc as e sofpas s i ngoffwe r ec l as s i fie d as cas es ofdece i t ,wher et he act i on was usual l y br ought not by t he dece i v ed,butby t heonewhosema mar k wasuse dt o dece i v e.( Bl anc har dv . Hi l l) ,l i mi t i ngt het or tt oc as e swhe r et he r ewasapr o ofofbadf ai t h. Lat e r ,i nt heni ne t e e nt hc e nt ur y ,i nt hec as eMi Mi l l i ng t o nv .Fo x,i twas dec i dedt hatpr oofoff r aud wasnotnec es sar yi n suchawr ongand i twas f r om her et hat t he act ual t or t of passi ng off beg an bui l di ng i t s own de fini t i o n. Theconceptofequi t ywasl ar gel yusedt or eal i set hescopeofpassi ng off.The pr edomi mi nantv i e w was t hatequi t yi nt er v ened t or es t r ai n what woul d bea f r aud i fal l owed t o goahead and t hati tpr ot ect ed pr opr i e t ar y r i ght s. Thi s part i cul ar vi ewpoi nt l ed t ot he equi t y cour t st o awardi ng comp mpensat i onsi nst ead ofi nj unct i ons.Thi si dea was based on t het heor y t hat ,i n such a t ort ,const r uct i vel y ,t he def endantwas an agentoft he pl ai nt i ff. Lat er ,i nt hecaseCar t i erv .Car l i l e,i twasdeci dedt hata“ manmust bet ake nt oi nt end”t henat ur alconsequencesofhi sac tandmer epr oofof l i kel i hoodofdecept i onwassuffici entt opr ovet hewr ong.
I nEde l s t e nv .Ede l s t e n,i twasputf or t ht hatme r eno t i c eofpl ai nt i ff’ s r i ght ssat i sfiedt her equi r ementoff r audandaman coul dbehel dl i abl ei n suchacasewhet herornothi sact i onswer ehones t . What ev ert hecasebe,f r aud cont i nued t or emai n an essent i alel eme nti n t het or t .Wher ef r audwasnotpr ove d,usual l yan i nqui ryi nt ot hedamages cause dwasor der ed. Fi nal l yi twas concl uded gr adual l y ,t hatf r aud nee d notbe shown whi l ej udgi ngsuc hacase. The finalques t i on woul d be,i ft he def endantwas unawar e oft he e x i s t e nc eo ft hepl ai nt i ffo rhi sbr and,wo ul d hes t i l lbel i abl ef o rs uc ha t ort .Theques t i on r emai ned open ended f oral ongt i meand atonepoi nt , t heaut hori t i eswer eopposed t ot hei mposi t i on ofl i abi l i t yi n such a case. Butasofnow,t hemot i veoft hedef endanti snotver yi mport anti nsuchan ac t i o n.Theo nl yt hi ngt hatne e dst obepr o v e di st her e put at i o ne s t abl i s he d byt hepl ai nt i ffs.
Passi ngoff & Tr ademar k The Tr ademar k i s pr ovi di ng pr ot ect i on t or egi s t er ed goods and s e r v i c e s,butt hepas s i ngoff ac t i o ni spr o vi di ngapr o t e c t i o nt ounr e g i s t e r e d goodsandser vi ces.Themosti mport antpoi nti st hatt her emedyi ssamei n bot ht hecasesbutt heTr ademar ki sav ai l abl et oonl yt her egi s t er edgoods and se r vi ce s and pass i ng off i s av ai l abl et o unr eg i s t er ed goods and s er v i c es .( nt hi s case t he Durga Dut tvs.Navar at na Phar maceut i cal )I Supr emeCour ts e toutt hedi s t i nct i on be t wee ni nf r i ngementand passi ng off.The act i on f ori nf r i ngementi s a st at ut ory r emedy conf er r ed on t he r egi st er ed ownerofar egi st er ed Tr ademar k and hasan excl usi veri ghtt o t heuseoft het r ademarki nr el at i on t ot hosegoods.Apassi ngoff act i on i s, t he r e f o r e ,i nde pe nde nto fas t at ut o r yr i g htandi se s t abl i s he dbye v i de nc eof r eput at i onandgoodwi l loft hebusi ness. ( Harr odsV.Harr odi an School , ( 1996) RPC697 asci t edi nP.Nar ayanan,Law ofTr adeMar ks( Tr adeMar kAct , 1999)andpassi ngoff( 5t hed. 500) I napassi ngoff act i on,t her egi st r at i on oft het r adenameorasi mi l armark i si r r el evant .Her e,t he pr i ori t yi n adopt i on and use oft r ade mar ki s
s upe r i or t o pr i o r i t yi nr e gi s t r at i o n. ( Ki s ho r e Zar da Fac t or y ( P)Lt d.v .J. P . Tobaccohouse,AI R 1999Del hi 172)“ Bycat enaofdeci si onsi ti snow se t t l ed t hata pr i oruseroft r ade mar k has r i ght s eve n overa l at err egi st er ed user ……noi nj unct i on can bei ssuedagai nstapr i oruseroft het r ademar k i n a passi ng off act i on. ” ( M/s SenorLabor at or i es Lt d. v .M/s.Jagsonpal Pharmaceut i cal sLt d. ,AI R 1999Del hi 102) The pr ot ect i on affor ded t o unr egi s t er ed mar ks i s al so ext ended t o f or ei gn marks,whi ch havea r eput at i on i nI ndi aon t hebasi sofext ensi ve adver t i sement sandpubl i ci t y .Thet r ansborderr eput at i on ofat r adercoul d enabl ehi mt oobt ai ni nj unct i on i nt hecour t s ofacount ryi n whi ch hei s not t r adi ng.I ndi an cour t s,t oo,r ecogni ze t he exi st ence oft r ansbor der r eput at i onandgranti nj unct i on i ncaseswher eonet ri est oder i veeconomi c benefitf r om t he r eput at i on es t abl i shed i n a par t i cul art r ade by anot her . ( Mar sI ncor por at ed v . Chanda sof t yI ce Cr eam and Ot her s,AI R 2001 Madr as237) .
El ement sOfPass i ngOff The t hr ee f undame nt alel eme nt s ofpassi ng off ar e Reput at i on, hr ee el ement s ar e Mi sr epr esent at i on and Damage t o goodwi l l . These t al soknown ast heCLASSI CALTRI NI TY,asr es t at edbyt heHouseofLor ds i nt hecas eofRECKI TT & COLMAN LTD V BORDEN I NC .I twass t at edi n t hi scase t hati n a sui tf orpassi ngoff t hepl ai nt i ff mustest abl i sh fir st l y , goodwi l lorr eput at i on at t achedt ohi sgoodsorse rv i ces.Secondl yhemust pr ove a mi sr epr esent at i on by t he def endantt ot he publ i ci . e.l eadi ng or l i kel yt ol ead t hepubl i ct o bel i evet hatt hegoodsand servi cesoffer ed by hi m ar et hatoft he pl ai nt i ff' s.Las t l y he mustdemonst r at et hathe has suffer edal ossduet ot hebel i eft hatt hedef endant ' sgoodsandservi cesar e t hos eoft hepl ai nt i ff' s . MODERN ELEMENTS OF PASSI NG OFF -I nt he c ase Erv en War ni nk Vs. Townend 3 ,Lor d Di pl ock gavet he essent i almoder n charact er i st i cs ofa pas s i ngoffac t i o n.The yar easf o l l o ws :i . Mi sr epr es ent at i on
i i . Madebyaper soni nt hec our seoft r ade i i i . To pr ospect i vecust omer sofhi sorul t i mat econsumer sofgoodsor servi cessuppl i edbyhi m. i v . Whi ch i s cal cul at ed t oi nj ur et he busi nes s orgoodwi l lofanot her t r ader . v . Whi c h causesact ualdamaget oabusi nessorgoodwi l loft het r ader bywhom t heact i oni sbr ought . Theabov econceptofpassi ngoff canbeexpl ai nedwi t ht hehel poff e w case l a ws :HondaMot or sCo.Lt dVChar anj i tSi ngh& Ot her s4 Fact s:Pl ai nt i ff was usi ng t r ademar k" HONDA"i nr es pec tofaut omobi l es andpowerequi pment s.Def endant ss t art edusi ngt hemar k" HONDA"f ori t s pr ess ur e cooker s.Pl ai nt i ff boughtan act i on agai nstt he def endant sf or pas s i ngoft hebus i ne s soft hepl ai nt i ff. Hel d:I twas hel dt hatt he useoft he mar k" Honda"by t he def endant s coul dn' tbesai dt o bean hones tadopt i on.I t susageby t hedef endanti s l i kel yt ocauseconf usi on i nt hemi ndsoft hepubl i c.Theappl i cat i on oft he pl ai nt i ffwasal l o we d.
Requi r ement sf oracl ai m To succeed i n a cl ai m f orpassi ng off,t hecl ai mantmus tfir s tpr ov et hat t heyhavees t abl i shed ar eput at i on i n amar k by usi ngi ti n busi nessand t hat t he use i s assoc i at ed wi t h t hei r name per sonal l y or t hei r goods/servi ces. The cl ai mantmus tal so show t hatt he mar k di s t i ngui shes t hem and/or t hei rgoods/servi cesf r om ot her s.Markscan havemanydi ffer entf orms,f or exampl e: •
St y l eo fpac kag i ng( e . g .t heSmar t i e st ube ) ;
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Co l our( t hego l df oi li nFe r r e r oRo che rc hoc ol at e ) .
Thel engt hoft i mer equi r edt oest abl i shgoodwi l li samat t eroff acti nal lt he ci r cumst ancesandt her ei snohardandf astr ul eont hi s. I n or dert osucceed,t hecl ai mantmustal sopr ovet hatt hei nf r i ngi ngact hast ake n pl ac ewi t hi nt heg e og r a phi c all i mi t so ft he i rg oo dwi l l .I ti sno t nec es sar yf ort heownert ose tup a busi nes si nt heUK i n or dert oshow t hatt he yha v ee s t abl i s he dg oo dwi l lt he r e . Cas e si nv o l v i ngt heg e og r a phi c all i mi t so fg oo dwi l lar edi ffic ul tt or e c onc i l e and t heout co medepends on t hef act sofeac h cas e.Two case scan bes t e xpl ai nt hi s . I n 1967,t heCr az yHor seSal oon ofPar i s( whi c h had noUK basebutwas known her e)was unabl et os t op t he openi ng ofa si mi l ar l y named but ot her wi seunconnect edcl ub i nt heUK.I n cont r ast ,i n 1964,t heSher at on Hot elGr oup ( whi c h att hatt i mehadnoUK basebutwasknown andt ook booki ngsf ori t sov er seashot el sf r om her e)wasabl et os t opt heopeni ngofa si mi l ar l ynamedhot eli nt heUK.Cl earl y ,i ti saj udgmentt hatacourtwi l l makebasedont hef act sofani ndi vi dualcase.
i . Mi sr epr esent at i on Thecl ai mantmus tpr ov et hati nt hecour seoft r ade,t hedef endantmadea r e pr e s e nt at i o nt hatwasmi s l e adi ng .I tdo e sno tmat t e ri ft her e pr e s e nt at i o n i st r ueasl o ngt heo v er a l le ffe c ti st omi s l e ad.Mor e ov e r ,t he r ei snone e df o r t he r epr es ent at i on t o be made by t he def endantwi t ht he i nt ent i on t hat c onf us i onwi l lr e s ul t . Ther eali ssuei st heeffecton t hecus t ome r .Wi l lt hecust ome rbel i ev et hat t her ei s an associ at i on be t ween t he def endant ' s goods/ser vi ces and t he r e put at i o no ft hec l ai mant ? Conf usi on al onei snotenough f oranact i on f orpassi ngoff.Ther emustbe al s obel o s st ot hec l ai mant .
i i . Damaget ot hecl ai mant
Tosucceedi napassi ngoff cl ai m,t hecl ai manthast oshow act ualorl i kel y busi ness l oss associ at ed wi t ht he def endant ' s act .The l oss need notbe financi aland t he t er m ' busi ness 'i s wi del yi nt er pr et ed t oi ncl ude many t hi ng s . Ther e can be l oss t o goodwi l lev en bef or et he cl ai mant ' s busi ness has begun i f adv ance publ i ci t y and mar ke t i ng has es t abl i shed goodwi l l . Si mi l ar l y ,t her e can al so be damage t o goodwi l l af t er t he cl ai mant ' s busi nesshass t opped.
Remedi es The cl ai mant i n a passi ng off act i on ma y cl ai m any oft he f ol l owi ng r emedi es: Ani nqui r yt oes t abl i shl oss
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Damagesoranaccountoft hedef endant ' sprofit s
Anor derf ort hedel i v er yupordes t r uct i onoft hei nf r i ngi ngar t i cl es
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I nj unc t i v er e l i e f
Def ences Anumberofdef encesr el at et ot henat ur eoft hedef endant ’ sact i vi t i es
1.UseofaRegi st er edTr ademar k I ft heal l e g edpas s i ngoff r e l at e st ot hede f e ndant ' sus eofar e g i s t e r e dt r ade mar ki n associ at i on wi t ht he ware s or ser vi ces oft he r egi st r at i on,t he e xi s t e nc eoft her e g i s t r a t i o n wi l lbeade f e nc et oac l ai mf orpas s i ngoff.Thi s i sbecauset hedef endanthast heexcl usi vest at ut oryri ghtt ouset hemar k i n as s oc i at i o n wi t ht hewar e so rs e r v i c e sf o rwhi c hi ti sr e g i s t e r e d.I ft he pl ai nt i ff has a cl ai m t hati ti s ent i t l ed t ot he mar ki n pr i ori t yt ot he
r egi st r antconsi der at i onshoul dbegi vent obri ngi ngpr oceedi ngst oexpunge t her e gi s t r at i on
2.UseofanI ndi vi dual ' sOwnName An i ndi vi dualdef endanthasa r i ghtt ousehi sorherown nameand t he f actt hatconf usi on may occurdoes notconst i t ut e passi ng off by i t sel f . Howeve r ,i fconf usi on occur s,whi ch i s br oughtt ot he at t ent i on oft hat def endant ,t hedef endanti sunderan obl i gat i on t ot aker easonabl ecar et o qual i f yt her epr esent at i on i mpl i ed i n hi sorherconducti n ordert oavoi d conf usi on.
3.Pl ai nt i ff' sOwnGoods I ti snotpassi ngoff t ouset hepl ai nt i ff' snameormar ki n connect i on wi t h war est hatar et hepl ai nt i ff' sor i gi nalwar es.Butat r adercannotr epr esent t hatwares ,whi ch are t he pl ai nt i ff' s ware s,are ofa part i cul ar cl ass or qual i t yi ft he yar eno t .Fore x ampl e ,i ti sac t i onabl et ooffe rwar e sofi nf e r i or o r de t e r i o r a t e dq ual i t y as t he pl ai nt i ff' so r i g i nalg o ods o rt he pl ai nt i ff' s war esi n an mat er i al l yal t er ed f or m ast heor i gi nal .Thef actt hatnot i ceof t hedi ffer encei sgi ve nt oconsumer satt het i meofsal emayavoi dafindi ng ofpassi ngoff.
4.Funct i onal i t y Li ke t r ademar ksany combi nat i on ofel ement swhi ch ar epr i mari l y des i gned t o per f or m af unct i on cannotbe pr ot ec t ed t hr ough a cl ai m f or passi ngoff.Thef actt hatt hepart y seeki ng pr ot ect i on obt ai ned a pat ent r e l at i ngt ot hear t i c l ei n que s t i on i se v i de nc eoff unc t i o nal i t y .Fo re xampl e , t he manuf act ur erofLEGO br and t oy bui l di ng bl ocks,af t ert he pat ent s r el at i ngt oi t spr oducte xpi r ed,was notabl et o pr ot ectt heel ement st hat makeupi t spr oductt hr oughanact i onf orpassi ngoff. . def A endantcan s t ar tbydenyi ngt hatt henecessar yel eme nt st oes t abl i sh
apassi ngoffact i onexi st .Fur t her ,t hef ol l owi ngdef encescanbeused: Thecl ai mant ' smar ki snotdi s t i nct i v e
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Thecl ai mant ' smar ki sme r el ydescr i pt i v e
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Themar khasceasedt obedi s t i nct i v eandhasbecomegener i c
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Thecl ai mantandt hedef endanthav econcur r entr i ght s
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Thedef endanti smer el yi nnocent l yusi nghi sownname
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Thecl ai manthasgi v enhi sorherconsent
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Thecl ai manthasdel ayedi ni ssui ngpr oceedi ngs
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Thecl ai manthasabandonedt hemar k
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Thecl ai manthasexhaus t edhi sorherr i ght s
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Of t enwher esomeonebel i eve st hatt heyhavet hebenefitofan unr egi st er ed mar k,t heywi l lsee kt owarnoff ot her s.Theyc an dosobyusi ngt he™ si gn i nordert opr eserv et hemar k.
ANALYSI SOFJUDI CI ALDECI SI ONS 1.Sout her nv .How The ear l i es t docume nt ed case wher et her e was an i ndi cat i on of passi ngoff,t hi sonedat esbackt o1618.I nt hi scasemar k ofan emi nent cl ot hi ngbr and wasuse dt odupeacust omer ,whoboughtt hedef endant ’ s l o wg r a dec l o t hi ngt hi nki ngi twast hepl ai nt i ff’ sbr and. Thedef endantwashel dl i abl e.Thi st hough wasmor eacaseofdecei t ,but t hepr i nc i pl eofpas s i ngoffc l e ar l ys t ar t e di t sj our ne yf r om t hi sc as e . 2.A. G.Spal di ng& Br ot her sv .A. W.Gamage,Lt d. The def endant s had or gani sed a sal e wher et hey announced t he y woul d sel lt he pl ai nt i ffs ’f oot bal l s ata nomi nalpr i ce.Buti nr eal i t y ,t he i nt ent i on oft he def endant s was t o sel la di ffer entbal l ,bel ongi ng t ot he pl ai nt i ffs’companyofcour se,t hant heoneadver t i sed.
An act i on wasbr oughtbyt hepl ai nt i ffsseeki ngt or ecov erdamages,whi c h t heycont ended,t heyhad i ncur r ed f r om t he di pi n sal eoft hei rgenui ne f oot bal l s. I t was hel d t hat i n t hi st ype of a wr ong, act ual pas si ng off was unnece ssar y .Whatwasi mpor t antwasadesc r i pt i onoft hi swr ongi nt er ms o fr e pr e s e nt at i o n.Re f e r r i ngt ot hede f e ndant s ’c ont e nt i o nt hatt hewr i twas i ssued bef oret her ewasanyki nd ofsal e,t her el aynobasi si nt heact i on andhence,i tcoul dnotsucceed,i twasdecl ar edt hatofferi ngt osel lwasan ac t i o nabl eac t .I twasal s ode c l ar e dt hatt he r ec oul dbenos or tofal i mi tf o r awar di ngdamage sf orsuchawr ong.
3.Hendr i cksv .Mont agu The pl ai nt i ffs,t he “ Uni v er salLi f e Assur ance Soci e t y” br ought an act i on agai nstt hedef endant st ost opt hem f r om carr yi ngon busi nesswi t h t he t r ade name “ Uni ve r salLi f e Assur ance Associ at i on” .The i nj unct i on soughtwasgr ant ed and i twasment i onedt hatsi ncet henameswer et oo s i mi l arf o rdi ffe r e nt i at i o n,t het o r to fpas s i ngoff wasi nde e dc ommi t t e d. 4.JBol l i ngervCost aBr avaWi neCo.Lt d. Popul ar l y known as t he Spani sh Champagne cas e,t hi s par t i cul ar cas e saw an ac t i on bei ng br ought by t wel v e bi gges t c hampagne manuf act ur er sofFr ance ,on behal fofev er ychampagnemanuf act ur eri n t hei rcount ry ,see ki ngi nj unct i onson useoft hewor d“ champagne”whi l e des cr i bi ngSpani sh wi ne,and passi ngi toff aschampagne.An i nj unct i on wasgr ant ed. 5.TheDut chAdvoc aatCase Er v enWar ni nkB.V.v .J.Townend& Sonsi spopul ar l yknownast he Dut c h Advoc aat c ase .Thi s was t he fir s tc ase wher e basi c el ement s of passi ngoff wer efir stputf ort h.Lor dFr aser ,whi l edel i ver i ngt hej udgment hadl i st edfivepri nci pl esofsuchat ort ,whi chhaveal r eadybeendi scussed.
I nt hepr ese ntcase,t hefir stpl ai nt i ff wasacompanyf r om t heNet her l ands whi c hmanuf act ur edabev er agemadef r om eggsandbr andewi j nspi r i t .The dr i nk was cal l ed Advocaat . The def endant s wer e an Engl i sh company manuf act ur i ng a dri nk ofa si mi l ar name ( Ol d Engl i sh Adv ocaat ) ,but al t oget herdi ffer enti n nat ur e,bei ngpr eparedf r om eggsandf ort i fiedwi ne. Bei ngawi nebaseddr i nk,t heexci sedut yon t hedef endant s’pr oductwas muchl ess ert han t hatont hepl ai nt i ff’ spr oduct ,whi chhadahugeshar eof t heEngl i sh “ Advocaat ”mar ket .Thi sr esul t edi nt hedef endant st aki ngover muchoft hepl ai nt i ff’ smar ketshare .An i nj unct i on wassoughtt ost op t he def endant sf r om usi ngt hename“ Advoc aat ” . I ni t i al l yi twashel dt hatt het er m“ Advocaat ”had earnedagoodr eput at i on and goodwi l l , bei ng r ec ogni se d as a dr i nk of good qual i t y and t ast e, some t hi ng whi c ht he def endant s ’pr oductdi d notc ompl y wi t h,wi t hi t havi ngadi ffer entr eci pe.I twashel dt hatt hedef endant swer egui l t yoft he t ortofpassi ngoff.TheCour tofAppealr eve r sedt hi sdeci si on byGoul di ng J. ,onl yt oseet heHouseofLor dsr es t or i ngi t .
6.TheJi fLemoncase Rec ki t t& Col man Pr oduct sLt d.v .Bor denI nc.i spopul ar l yknownas t he Ji fLemon case .The j udgmenti nt hi s casefinal l yf or mul at ed t hr ee basi cpr i nci pl esoft het or tofpassi ngoff. Thef act soft hi scasegoassuc h; Thepl ai nt i ff wasamanuf act ur erofl emonj ui ceand,si nce1956,hadbeen s e l l i ngs uc hj ui c eunde rt hename“ Ji f ”i npl as t i cc o nt ai ne r sr e s e mbl i ngr e a l l emons.Thedef endant ’ spr oduct ,manuf act ur edi n198586mar ket edt hr ee di ffe r e ntki ndso fl e mo nj ui c ei nc o nt ai ne r spr e c ar i o us l ys i mi l art ot ho seo f t hepl ai nt i ffs’ ,t heonl ydi ffer encebei ngadi ffer ent l ycol our ed coverand a di ffer entbr andname,“ ReaLe mon” . Thepl ai nt i ffs ’br oughtan act i on f orpassi ngoff and wer esuccessf ul ,wi t h bot ht heCour tofAppealandt heHouseofLor dsuphol di ngt hedeci si on.
Wal t on J. ,obser v ed t hata car ef ulshoppermi ghtbe abl et o di s t i ngui sh be t weent hedi ffer entbr ands,but ,t oquot ehi m; “ t hes l i g ht e s tpe r adv e nt ur et hatt hee ffe c to ft hei nt r o duc t i o no fanyoft he def endant ’ sl emons on t ot he mar ke twoul d be bound t or es ul ti n many house wi v espur chasi ngt hem i nt hebel i eft hatt heywer epur chasi ng t he wel lknownandl i kedJi fbr and. ” Thef actt hatt hebr and “ Ji f ”wasi dent i fied byt heshapeofi t scont ai ner andno tbyi t sl abe lpr o v i de dt heul t i mat ee v i de nc e . 7.Cal v i nKl e i nI nc .USAv .I nt e r nat i o nalAppar e lSy ndi c at e I nt hi s case,t he pl ai nt i ff,an i nt er nat i onal l yr eput ed US company wi t h at r eme ndous goodwi l lf ordesi gnercl ot hi ng br oughtan act i on f or pass i ng off and t r ademar ki nf r i nge ment agai ns tI nt er nat i onal Appar el Syndi cat e,an I ndi an company t os t op t hem f r om usi ng t het r ade name Cal vi nKl ei nandt hemar kCK. Cal vi n Kl ei n di d nothavea mar keti nI ndi a,butt hei rgoodwi l lwasbased on t hei rr eput at i on ear ned t hr ough adve r t i se ment s. They al so had wor l dwi de t r ademar kr egi s t r at i ons i n 136 count r i es i ncl udi ng I ndi a.I n I ndi a,t he i rr e g i s t r a t i o nc ov e r e do nl yt e xt i l eg oods ,whi l et he i rappl i c at i on f or t r ademark r egi st r at i on f or cl ot hi ng,f oot wearand headgearwas st i l l pendi ng.Fal ser epre sent at i onbyt heI ndi an companyt hatt heywer eoffici al CK l i censee sandmar ket i ngt hei rpr oduct sundert het r adenameofCal vi n Kl ei n l ed t ot he Cal cut t a Hi gh Cour t pass i ng an i nt er i m or der f or i nj unct i on,st oppi ngI nt er nat i onalAppare lSyndi cat ef r om usi ngt hename Cal vi nKl ei nandt hemar kCK,whi c hsubse quent l ybec ameper manent . The def endant s ’cont ent i on t hatt he pl ai nt i ffs coul d notbr i ng an act i on becauset he y di d notsel lt hei rgoodsi nI ndi a wasdi sal l owed.The cour t sai dt hatt hemar kswer eusedwi t h an i nt ent i on t odece i vet hecust omer s andt ot r ader i di ngont hei nt e r nat i o nalr e put at i o no fCal v i nKl e i n. 8.HondaMot or sCo.Lt d.v .Mr .Char anj i tSi nghandOr s
The def endant s manuf act ur ed pr essur e cooker s under t he name “ Honda” ,i nI ndi a.Thei r appl i cat i on f or r egi st r at i on had al r eady been r ej ect ed once bef or e and t hey had appl i ed f or r egi st r at i on agai n,whi l e c ont i nui ngt os e l lt he i rpr o duc t s . The pl ai nt i ffs, popul ar al l ov er t he wor l df or t hei r mo t or goods and el ect ri calappl i ances br oughtan act i on agai nstt he def endant s.I nI ndi a, t heyr anaj oi ntve nt ur ewi t ht heSi ddhart hShr i r am Gr oup. I nt hej udgment ,i twashel dt hatwi t h an est abl i shedbusi nessandsal eof qual i t y pr oduct s,t he name “ Honda” had become ass oc i at ed wi t ht he pl ai nt i ffs ’r e put at i o n and i t sg oo ds .I twass ai dt hati ti sv er ye as yf ort he publ i ct oassoci at et hepl ai nt i ffswi t h anypr oductt hatcarri est henameof “ Honda” .Fur t her ,t hehonour abl ej udgesal sohel dt hatbyusi ngt hename “ Honda”t hedef endant swer ecr eat i ngconf usi on i nt heconsumer s’mi nds, whi c h wasi ndi r ect l yaffect i ngt hebusi nessoft hepl ai nt i ffsi n an adv er se way .Ani nj unct i onwasor der edt os t opt hedef endant sf r om usi ngt hename “ Honda” . 9.Col gat ePal mol i v eCompanyandAnr .v .Anc horHeal t h andBeaut yCar e Pv t .Lt d. Bot ht he pl ai nt i ffs and t he def endant s manuf act ur e wel lknown t oot hpast ebr ands.Thepl ai nt i ffssued t hedef endant sf orpassi ngoff.The cont ent i on oft he pl ai nt i ffs was t hatt he def endant s’use ofcol ourand pat t er n ofcol our si nt hei rdent alpr oduct swasdanger ousl ysi mi l art ot he pl ai nt i ffs’ .Accordi ng t ot he pl ai nt i ffs t he pr oport i on ofcol our s( r ed and whi t e)usedbyt hedef endant swasal mos ti dent i calt ot hatoft hepl ai nt i ffs ( 1/3: 2/3) .Ther easonf orbri ngi ngi nsuchanact i on wast hatt hepl ai nt i ffs wer ees t abl i shed i nt heI ndi an mar ke tsi nce1951,and had at r eme ndous goodwi l li nt hecount ry ,whi l et hedef endant shad ent er edt hemar ketonl y i n1996. I twashel d by t hecour tt hatt hough t her ecannotbeanymonopol yov er col our ,i n a count ry wi t h a huge numberofi l l i t er at e and semi l i t er at e peopl e,bymar ket i nganew pr oductwi t h adesi gn cl osel yre sembl i ngt hat oft he ol derpr oduct ,i ti s easy t o cr eat e conf usi on i nt he mi nds oft he
publ i c,especi al l ywhenasi mi l arpr oducthasbeenpr evai l i ngi nt hemarket f orcl oset ohal facent ury .I twasadj udgedt hatt hedef endant swer eusi ng t he t r ade dr es s of t he pl ai nt i ffs. The cour t or der ed an i nj unct i on, r es t r ai ni ng t he def endant sf r om usi ng t he r ed/whi t e combi nat i on i nt he di sput edorder . 10.Smi t hkl i neBee cham v .V. R.Bumt ar i a The def endant s used t he name “ ACI FLO” f or one of t hei r phar maceut i cal pr eparat i ons. The pl ai nt i ffs’sued t he def endant sf or pass i ngoff si ncet he yhad been usi ngt henameof“ ARI FLO”f ort hesame pr oduct ,anamewhi chwasr egi st er ed.Theydi dnothaveamar ke ti nI ndi a. Thepl ai nt i ffscont endedt hatadv er t i seme nt si nmedi calj our nal samount ed t o bui l di ng of a goo dwi l li n I ndi a, whi c h was bei ng mi sused by t he def endant s. The cour t hel d t hat t he r eac h of medi cal j our nal s was r est r i ct ed t o a speci ficcl ass ofpeopl eand so was t her eput at i on,hence, t her ewasnopass i ngoff.
ngoff Thepr act i calconsequencesoft hel aw o fpassi
Es se nt i al l y ,t hati nc hoosi nga t r ade he l aw ofpassi ng off meanst mark,you shoul dconsi derwhet hert her ear eanyearl i err el evantr egi st er ed t r ademar ks( bysear sowhet hert her e chi ngt r ade mar kr egi st er s)and al ommo nl aw ar e any r el ev antunr egi st er ed t r ade mar ks ( by under t aki ngc s e a r c h e s such as gener ali nt er netsear ches) .Justbecause a mar ki sn' t
r egi st er ed,doesn' tmean t haty ou won' ti nf ri ngebyusi ngasi mi l armar k. Asecondpr act i calconsequencei st hati fyouhav enotr egi s t er edyourt r ade mar k and find a compe t i t orusi nga suspi ci ousl ysi mi l armar k,yo u may haver i ght sonwhi chyoucant akeact i on.
CONCLUSI ON I n a nut shel l , i n an act i on f or passi ng off t he pl ai nt i ff has t o es t abl i sh t hathi s busi nessorgoods has acqui r ed t he r eput at i on he i s
cl ai mi ng,by showi ng t hathi st r ade name has become di st i nct i veofhi s goods and t he pur chasi ng publ i c atl ar ge associ at es t he pl ai nt i ff’name wi t ht hem.
I nt hec as e so fi nf r i ng e me ntt hebur de ni sal wa y sl i e st ot hepl ai nt i ff.( S. M. I nt hi sc as ean i nf r i ng e me ntac t i o n Dyechem Ltd.v.Cadbur y( I ndi a)Ltd) i sf ai lwhe r e pl ai nt i ffc anno t pr o v er e g i s t r at i o no rt hat i t sr e g i s t r at i o n ext ends t ot he goods or t o al lt he goods i n ques t i on or bec ause t he
r egi st r at i on i si nval i d and yett hepl ai nt i ff may show t hatbymi t at i ng t he mar kot her wi se,t hedef endanthasdonewhati scal cul at edt opassoff hi s goodsast hosepl ai nt i ff.
Whatt hepl ai nt i ff mustest abl i shi napassi ngoff act i on? I ti sessent i alf orsuccessi napassi ngoffact i onbasedont heuseofamar k org etup t hatt hepl ai nt i ff shoul d show t hatt hedi sput edmar k org etup has becomebyuserdi st i nct i veoft hepl ai nt i ff’ sgoodssot hatt heusei n r e l at i o nt oanygo odso ft heki ndde al ti nbyt hepl ai nt i ffo ft hatmar ko rg e t up wi l lbe under s t ood by t he t r ade and t he publ i c as i ndi cat i ng t he pl ai nt i ff’ s goods. [ 5] t her e i s mi sr epr esent at i on,when i ti sharm t heexi st encepl ai nt i ff’ sgoodwi l l ,when i ti smadebyat r aderi nt hecour seoft r ade,whi chi si nj ur et hebusi nessof anot hert r aderandwhi chcauseact ualdamaget ot hebusi nessorgoodwi l l oft he t r ader by t he whom act i on i s br ought . [ 6] But t hes er equi r ement s wer er educe dt ot hr ee i n Rec ki t t & Col man
Pr oduct sLt d.V.Borden I nc. [ 7] now t her ear et hr eeessent i alr equi r ement sf ort hepassi ngoff act i on:
he Cl :Al t hough T ai mant ’ s Goodwi l l
damagei st hegi stofan act i on f orpassi ngoff,butt hepl ai nt i ff mustshow t hatt her ei sa r easonabl er eason ofhi sbei ngi nj ur ed by t hedef endant ’ s act i on,even i ft heconductoft hedef endantmi ghtbecal cul at edt odecei ve t hepubl i c .Apr i v at ei ndi v i dualc anno ti ns t i t ut eas ui tf o rpas s i ngoffe v e ni f t hedef endantpr act i cesdecept i on upon t hepubl i c,unl essi ti spr ovedt hat t hede f e ndant ’ sac t i o ni sl i ke l yt oc aus edamag et ot hei ndi v i dual . s r e pr e s ent at i o n Mi sr epr esent at i on:Mi
i nt hes i mpl e s tf o r mo fpas s i ngoff.I fAs a y sf al s e l yt he s ego odsIam s e l l i ng ar eB’ sgoods.I ti sa cl earcaseofpassi ngoff.I n si mpl ewaywecan say t hatmi sr epr esent at i on shoul dl ead.Orbel i kel yt ol ead conf usi on on t he partofconsumer s.I n caseofKhemr ajv.Gar g[ 8] ,i des i gn and co l ours c heme,e t c.and t hename“ manav panchang, manir am panc hang” and “ shr iv al l abh Mani Ram panchang” of t he pl ai nt i ff’ s panchang. The cour thel dt hati ti s si mi l art ot he pl ai nt i ff’ s pr oductand I nt er i mi nj unct i onwasgr ant ed.
I n t he cas e of Rupa & Co. Lt d v. Dawn Mi l l s Co. Lt d.
s uppor t Foot not e s] >[ 9]
I n
t hi s
cas e
t he
de f endant
manuf act ur ean under wearwhi chnameddawn assi mi l art ot hepl ai nt i ff’ s manuf act ur edunder weardon,whi chi scr eat i ngconf usi on i nt hemi ndsof peopl ebec auset hel ayout ,ge tup and col ourcombi nat i on i ssamet ot he pl ai nt i ff’ spr o duc t .
Damage:Damagesar e avai l abl ei na
pass i ng off act i on.And r emedy i s av ai l abl ei n bot h cas es whe t hert he i nf ri ngementsui torpassi ngoff act i oni nbot ht hecasesremedyi sgi ven.
Now t hequest i on ofhow t hepass i ngoff act i on ar i ses? Theques t i on ofhow t hepassi ngoff act i on es t abl i shed.Ij us tr ef er r ed t he t wocasesfir stcasei sr el at i ngt opassi ngoff act i on i ndomai nnamei nt hi s r eg ar d Ij us tr ef er t he cas e of Akash Ar or a vs. Yahoo I nc[ 10] ,i yahooi ndi ai s cr eat i ng a conf usi on i nt he mi nd oft he peopl e.And t he def endantyahooi ndi ai ssameast hepl ai nt i ff’ syahoo.Butasast udentof l aw Iam notgowi t ht hecasedec i si on becausemyvi ewsr eg ar di ngt ot he cas ei st hathi s si t e may be be t t er t han hi s compe t i t or s.And se cond i mport antt hi ngi st hatt hosewhoaccesst heI nt er nett heyar ecapabl et o di st i ngui sh whi ch si t ei s yahoo.i n and whi ch one i s yahooi ndi a. So t he quest i on ofconf usi on i snotcr eat ewhen t hepeopl ear eabl et odi st i ngui sh be t weent hesi t est hent her ewi l lbenoques t i onofpassi ngoffar i se. The second case I n Rec ki t t & Col man of I ndi a Lt d. vs. M. P.
Ramachandr an
&
Anr[ 11] ,
Hon’ bl eCal cut t aHi gh Cour t( Bari n Ghosh,J. )l ai ddown fivepr i nci pl esf or g r a nt i ngani nj unc t i o ni nc as eo fc o mpar at i v ea dv e r t i s i ng : i .A t r adesman i sent i t l edt odecl arehi sgoodst obebesti nt hewor l deven t hought hedecl arat i oni sunt r ue; i i .He can al so say t hathi s goods arebet t ert han hi s compet i t or s,eve n t houghsuchst at ementi sunt r ue; i i i .Fo rt hepur po s eo fs a yi ngt hathi sg oo dsar et hebe s ti nt hewo r l do rhi s goodsar ebet t ert han hi scompet i t or shecan ev encompar et headvant ages ofhi sgoodsovert hegoodsofot her s;
i v .He howev er ,cannot ,whi l e sayi ng t hathi s goods ar e bet t ert han hi s c ompe t i t o r s ,s ayt hathi sc ompe t i t or ’ sgo odsar ebad.I fhes ay sso,her e a l l y sl ander st he goods of hi s compet i t or s and t hei r goods, whi ch i s not pe r mi s s i bl e . v .I ft her ei sno def amat i on t ot hegoodsort ot hemanuf act ur erofsuc h g oo dsnoac t i o nl i e s ,buti ft he r ei ss uc hde f amat i o n anac t i o nl i e sandi fan act i on l i esf orrecover yofdamagesf ordef amat i on,t hen t hecourti sal so compet entt o grantan order ofi nj unct i on r est r ai ni ng r epet i t i on ofsuch def amat i on. The Hon’ bl e cour tal so obser v ed i nt hi scaset hat“ Onecan boas tabout t ec hnol ogi cal s uper i ori t y of hi s pr oduct and whi l e doi ng so can al so compar et headvant agesofhi spr oductwi t ht hosewhi ch ar eavai l abl ei n t hemar ket .Hecanal sosayt hatt het echnol ogyoft hepr oduct savai l abl ei n t hemar kethasbec omeol d orobsol et e.Hecan f ur t heradd t hatt henew t echnol ogyavai l abl et ohi mi sf armor esuper i ort ot heknown t echnol ogy, buthecannotsayt hatt heknown t echnol ogyi sbad and har mf ulort hat t hepr oductmadewi t ht heknownt ec hnol ogyi sbadandhar mf ul .Whathe can cl ai m i sonl yt hathi spr oductand hi st echnol ogy i s super i or .Whi l e co mpar i ng t he t ec hnol ogy and t he pr oduct s manuf act ur ed on t he basi s t her eof ,hecansayt hatbyre ason oft henew super i ort echnol ogyavai l abl e t ohi m,hi spr oducti smuch super i ort oot her s.Hecannot ,howev erwhi l e socompari ngsayt hatt heavai l abl et ec hnol ogyand t hepr oduct smadei n accor dancet her ewi t har ebadandharmf ul . ”
CONCLUSI ON I nt heconcl usi on t her esear cherconcl udest hatt hepassi ngoff act i on i s appl i edi nunr egi st er edgoodsandservi ces,andi ni nf ri ngementofsui tand passi ngoff i nbot ht hecasest her emedywi l lbesame.Thent hepassi ngoff i s ari se i nt hr ee cases fir stwhen i ti si nj ur ed t he cl ai mant s good wi l l , secondl yi n mi sr epr esent at i on and t hi r dl yi n damages,wher et heposi t i on i ssamel i kei ni nf ri ngementsui t .Andl ast l ywhent heconceptofpassi ngoff i sr eadi ngwi t h domai n nameand t ec hnol ogi calchangest hen t heconce pt ofpassi ngoff i si ndi ffer entdi mensi on.
LUXURY TAX FILE NO.1
