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Selecting the right trademark for your business

Trademarks play a very important role in any business as they represent and become as the identity of a business. Trademarks are a form of Intellectual Property (IP), which is empowered by The Trade Marks Act, 1999 in India. Section 2 (zb) of the Act defines a “trademark” as a mark capable of being represented graphically and which is capable of distinguishing the goods or services of one person from those of others and may include shape of goods, their packaging and combination of colours.

In the Act, section 2 (m) defines a “mark” as a device, brand, heading, label, ticket, name, signature, word, letter, numeral, shape of goods, packaging or combination of colours. From the above definitions we can understand that the meaning of trademark is really broad in India. It is really important to choose the trademark for your business carefully so that the customers can distinguish your services or goods from others. Distinct trademark not only helps companies to build a strong trademark but also makes the process of trademark registration smooth because there are less objections during the process of registration. Further, a distinct trademark is less likely to get into any legal disputes. Thus, coining the right mark and protecting it in the initial phase helps in multiple ways.

Things that need to be avoided while choosing a trademark

Section 9, ‘absolute grounds for refusal of registration and section 11, relative grounds for refusal of registration’ of the Act need to be kept in mind while choosing a trademark. Some of the important points from these sections are given below.

  • The customers should be able to distinguish the trademark. It must not be confused with other trademarks. Here, trademark search becomes very important.
  • The trademark should not be describing the product or service. It shouldn’t be descriptive by providing the kind, quality, quantity, intention, values, geographical origin, characteristics of product etc.
  • It shouldn’t be misleading the public in any way.
  • The trademark should not hurt any religious susceptibilities.
  • Shape of the goods should not represent the goods itself.
  • Cannot be identical or similar to an earlier trademark or well-known trademark.

Points that help in finding an attractive trademark

  • The mark should be comfortable for the public to read, pronounce and remember.
  • It is better not to choose words that can be interpreted by different meanings in any language.
  • A mark, which is easy to advertise, will help to make an impact in the customers mind.

Types of trademarks:

  • Fanciful marks: Inventing fanciful words without any meaning is easy to protect but requires proper advertising for customers to remember. For example, “BATA” for footwear, “GOOGLE” for web services, ZOMATO for food delivery, etc. These words have no meaning or relation with the services or goods they provide.
  • Arbitrary Marks: These are the trademarks where the word or words has meaning and which will be in common use but doesn’t have any relation with the product and services provided by the entity. These marks also need proper advertising for the customers to understand the products and services. For example, “SHELL” for petroleum goods, “BLACKBERRY” for telecommunication devices, “APPLE” for personal computers, etc.
  • Suggestive Marks: For a suggestive mark, words are chosen without describing the product but provide some resemblance with the product and services. These marks require less advertising because the customers can get a hint from the mark itself but these marks are difficult to get protection. For example, “AIRBUS” for an aircraft manufacturing company, “EATFIT” for healthy food delivering cloud kitchen, etc.
  • Descriptive marks: These marks are very weak for getting protected. These marks describe the product but not in direct meaning. The main advantage of having a descriptive mark is that these marks require less advertising, because, the public can easily understand what the product is. Example “PIZZAHUT” for a pizza restaurant, “CARDEKHO” for used and new car sales platform, etc.
  • Generic words for trademark: Companies and enterprises cannot use a term that is like “printer” for a printing machine as a mark. A generic word used as a trademark which later on is used to describe the whole product category could lead to a loss of distinctiveness. This is called as genericide. Some examples are of this are “XEROX”, “SUPERGLUE”, “JET SKI”, “BAND-AID”, “ASPIRIN” etc. These products have lost their distinctive identity.

Conclusion

The strongest and easily protectable trademarks are fanciful marks (Ex: Google) and arbitrary marks (Ex: Amazon). These trademarks are distinctive, easy to remember and pronounce, and also makes an impact in the minds of public.

 

Author: Kailesh Gopi

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Video games and IPR

Video games are amongst the most widely enjoyed forms of entertainment today. While video games are predominantly played by people in their adolescence, these games are making their way into a multimillion-dollar full-fledged industry that is based on competitive playing. With this level of involvement of games in the lives of people everywhere, it then comes as no surprise that there have been cases where popular characters of video games have come under the spotlight of intellectual property theft. Let’s take a look at a case riddled with twists featuring some of the world’s most popular movie and video game characters.

The case

When we picture the word “Mario”, we instantly imagine a character wearing a red plumber’s uniform, bouncing on platforms to save his princess from evil forces. And when we hear the phrase “King Kong”, our minds instantly jump to a massive gorilla waving his arms around, swatting at airplanes atop the empire state building. It may come as a surprise that the owning studios of these productions have in fact gone head-to-head in a rather interesting lawsuit regarding the theft of the idea of the popular oversized gorilla.

The movie King Kong was first released in the year 1933 by Merian C. Cooper. The production house for King Kong was RKO, which later went on to release subsequent sequels of King Kong in the following years. The movie franchise went on to do very well, earning their producers and directors large sums of money throughout the runtime of the movie. In the year 1981, Nintendo released their game Donkey Kong, where Donkey Kong was a large ape and would attempt to stop Mario (then called Jumpman) from reaching Pauline (Mario’s romantic interest, then called Lady). The game was a big hit and it was simply a matter of time before the game caught the eye of Universal Studios, who then apparently held the license for King Kong. Outraged at Nintendo and other game studios for blatantly copying the idea of King Kong, Universal Studios sternly ordered every agency selling products under the name of Donkey Kong to pay Universal Studios royalties for the misuse of Donkey Kong by way of cease-and-desist letters. Almost all the agencies reverted back with the royalty payments, except Nintendo.

Nintendo attempted to settle the suit outside the proceedings of a court in the year 1982 to which the Vice President of Universal Studios Robert Hadl responded by asking Nintendo to stop making copies of Donkey Kong. Nintendo’s attorney Howard Lincoln pointed out that the name King Kong had previously been used on multiple products that were in no way affiliated with Universal Studios, claiming that Universal Studios in fact did not have the rights to King Kong in the first place. Hadl then asked Nintendo to brace themselves for a lawsuit, claiming that Universal Studios saw lawsuits as a way of making money.

John Kirby was brought in by Lincoln to represent Nintendo in the case because he had a history of winning big-name lawsuits for companies like Sony. During the proceedings, Universal Studios claimed that Nintendo’s Donkey Kong and Universal Studios’ King Kong could easily be confused with each other and that the story line of the movie and game were also similar. To counterattack, Nintendo asked a representative to assure the court that the gameplay of Donkey Kong was in no way similar to the storyline of King Kong. Additionally, Nintendo went on to claim that Universal Studios did not own the rights for King Kong and shockingly enough, that Universal Studios were aware of this fact and still decided to demand royalties for King Kong despite knowing they did not have the rights for King Kong.

Historically, the rights of King Kong had always been a territory undefined. When King Kong was initially released by Cooper in 1933, the rights were firmly with Cooper. Later on, Cooper realized that other production houses were making movies with the character King Kong, and that he had no clear documents preventing them from doing so. Cooper tried to find papers to authenticate his rights but found that he had given the rights for only 2 movies to a production house called RKO Pictures and for a book written by his friend Delos W. Lovelace sometime in the decade of 1970, a whole decade before the release of donkey Kong by Nintendo. However, Cooper could not find documents stating that the license was given to RKO Pictures. During this time, Universal Studios wanted to make their own series of movies on King Kong but were stopped as the rights to King Kong were with RKO Pictures. Desperate to win King Kong, Universal Studios argued in court that the copyright on Lovelace’s novel (which was the only existing document proving ownership of any kind) had expired by then and that King Kong was therefore a public domain character. The court decided that King Kong was indeed in the public domain and therefore anyone could make their reproductions of the character as long as the story involving the character was not copied.

The presiding judge during the 1982 case of Nintendo versus Universal Studios kept all this in mind and reprimanded Universal Studios for knowing fully well that Universal Studios had themselves contested that King Kong was a public domain character but still asserted that they owned the character and even demanded royalties from agencies making use of King Kong. The presiding judge further ruled that the game Donkey Kong was not similar to the storyline of King Kong in any way and was “a parody” at best, thus solidifying Nintendo’s case against Universal Studios. The judge declared that any agency that had paid royalties to Universal Studios were free to demand the royalty fee back from Universal Studios and that all cease-and-desist letters from Universal Studios were rendered null and void. Further, the court found that a game released by a company called Tiger Electronics was very similar to Donkey Kong and thus ordered Tiger Electronics to pay Nintendo a sum of $58 million.

Universal Studios was the one to push this lawsuit against Nintendo in order to extract money from them by means of a character that they didn’t have the rights for. Universal Studios knew this in fact because a few years ago they themselves had gone to court to prove that King Kong was a public domain character, and anyone was free to use the character. Nintendo had initially planned to settle the matter outside of the court but went against the movie giant Universal Studios and even won with getting money from profits from a by-product of the ruling. This case shows us that it is never a good idea to underestimate the court or your opponents, and to assume that all secrets regarding ownerships and rights are out in the open for everyone to access. Universal Studios underestimated the court and Nintendo and subsequently ended up losing the case.

Author: Udit Sharma, Graduate student in Additive Manufacturing, Uppsala University, Sweden

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Wyeth Holdings Corporation and Ors. Vs. Burnet Pharmaceuticals (Pvt.) Ltd. {AIR 2008 Bom 100}

In this case, Wyeth Holdings Corporation and Ors. (Hereinafter referred to as Wyeth), who is the registered proprietor of the mark “FOLVITE”, filed an opposition for registration of the mark, “FOLV” applied by Burnet Pharmaceuticals (Pvt.) Ltd. (Hereinafter referred to as Burnet), on the grounds that Wyeth is the registered user of the mark “FOLVITE” and if registration is allowed to the mark of Burnet it will lead to infringement. Brief Facts of the case are as follows:

  1. Wyeth on 6th September 1946 made an application for registration of mark “FOLVITE” which was advertised in the Trade Marks Journal and on 28th April 1949 got registration of mark “FOLVITE” in class 5 in respect of a “nutritional factor of Vitamin B Complex in the treatment and prevention of vitamin deficiencies and anemias”.
  2. Burnet, who initially adopted the mark “FOLACID” for its products, changed in to “FOLV” for which permission was granted by Drugs Control Authority in December 2000. Later Burnet sought registration of mark “FOLV” in class 5 which was proposed to be used. When advertised in Trade Marks Journal it was duly opposed by Wyeth.
  3. Subsequently, registration of the mark “FOLV” as proposed by Burnet was refused by Registrar of Trademark for which appeal was preferred by Burnet which was pending before Intellectual Property Rights Appellate Board at time of institution of this suit. Briefly stated, the grounds on which registration was refused by Registrar are as follows:
    • Burnet’s mark is similar to that of Wyeth and there exists likelihood of confusion since Wyeth has acquired reputation in the market.
    • The mark proposed to be used by Burnet is visually and phonetically similar to that of Wyeth.
    • Wyeth being a long and extensive user has acquired a reputation in the market and the use of a deceptively similar mark was likely to cause confusion to the public at large.

And the suit at hand has been instituted for infringement and passing off.

Arguments

By Wyeth i.e., Plaintiff

  1. That the mark “FOLVITE” was invented by Wyeth, and the said mark has earned a substantial reputation in the Market. The mark of Wyeth when compared in whole with the mark of Burnet i.e., “FOLV”, it can be seen that Burnet has used a deceptively similar mark which is likely to cause confusion. Further, use of the mark by Burnet for similar ailment and purpose increases such a chance of confusion.
  2. That Burnet initially adopted the mark “FOLCACID” which they later changed to “FOLV” for which no proper explanation had been provided on affidavit, which puts a benefit of doubt on Burnet claiming to be the honest user of the mark “FOLV”.
  3. That the contention of Burnet that Wyeth had delayed in moving the court which indicates that Wyeth had acquiescence with the business and the mark of Burnet is not true. This could be inferred from the fact that Wyeth has not abandoned their right to sue for infringement or passing-off.
  4. Reliance was placed by Wyeth on the decision of Hon’ble Supreme Court in the case of Cadila Healthcare Ltd. Vs. Cadila Pharmaceuticals Ltd. {[2001]2SCR743} wherein it was held by the court that in case of deceptive similarity in medicinal products a strict approach has to be adopted to protect people at large from dangerous consequences of confusion caused due to such deceptive similarity.

By Burnet i.e., Respondent

That there is no phonetic or structural similarity between the mark of Burnet and mark of Wyeth as a registered trademark is not infringed, when a mark when used in relation to goods or services, indicates inter alia the kind, quality, intended purpose or another characteristic of the goods and services.

  1. That Wyeth had delayed in moving the court which shows that they have acquiescence with business and trademark of Burnet.
  2. That the mark of Wyeth and mark of Burnet is based on the common element ‘Folic acid’ and when a mark consists of a common element, which in case of Wyeth means “FOL” derived from ‘Folic Acid’ and VIT derived from ‘Vitamin’, greater emphasis has to be given on uncommon elements i.e., letter ‘E’ which cannot be made as a ground for instituting suit of infringement.
  3. That the judgement of Supreme Court in Cadila Health Care Ltd. v Cadila Pharmaceuticals (supra) is not applicable to all classes of medicinal products but only to those where both the drugs are meant for curing the same ailment but the compositions are different, but in the present case, both the composition of both the drugs are same.

Issue

The core issue before Hon’ble Bombay High Court was whether the trademark of Burnet i.e., “FOLV” is deceptively similar, phonetically and visually, to the trademark of Wyeth i.e., “FOLVITE”?

Judgement

Hon’ble High Court of Bombay in this case, while citing various precedents observed that, while comparing the marks, they are to be considered as a whole, their structure has to be kept in mind and the court must look at the marks through the eyes of the purchaser having imperfect recollection. Based on such it was held the mark of Burnet, “FOLV” is deceptively similar to mark of Wyeth, “FOLVITE”

As to the contentions of Burnet, that the judgement in the case of Cadila Healthcare (supra) will not be applicable to present suit because the observation of Supreme Court must be confined to drugs having different composition, the court observed that the judgement has to be considered in its entirety, the ambit of judgement cannot be restricted by artificial process of construction, it was further observed by the court that:

“It would be inappropriate for the Court to apply a stricter standard only to a particular class of medicinal preparations. If the Court were to do this, it would have to make artificial distinctions from case to case based on whether or not the Court considers that a confusion arising out of the medicinal product in issue may or may not have disastrous effects on health and life. Such an approach is impermissible………Undoubtedly, where the competing drugs are meant to cure the same ailment but the compositions are different, mistaking one for the other may result in deleterious consequences. But, merely because the two competing marks are used for drugs with the same composition that would not justify applying a lower standard of scrutiny. For, even in such a case, the public interest lies in protecting the consumer against an unwary purchase of a deceptively similar product”

Further the argument of Burnet that, while comparing trademark more emphasis was to be placed on uncommon parts, was not accepted based on the following reasons:

  1. The mark “FOLVITE” does not have any English meaning, it is an invented term.
  2. Wyeth Mark is a composite mark; it is not open for Burnet to break down the mark. As long as mark is registered it is not open for Burnet to question the validity of registration by virtue of Section of 31(1) of the Act.
  3. The mark of Wyeth is registered as “nutritional factor of vitamin B”, hence it would be impermissible to equate Wyeth’s mark as preparation of ‘folic acid’ alone

Thus ultimately, it was held by Court that the mark of Burnet is deceptively similar to mark of Wyeth and that Wyeth has established prima facie case for grant of interim relief.

 By: Dhruv Dangayach, Ramaiah College of Law

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Amritdhara Pharmacy Vs. Satya Deo Gupta (AIR 1963 SC 449)

Amritdhara Pharmacy Vs. Satya Deo Gupta (AIR 1963 SC 449)

Satya Deo Gupta (hereinafter referred to as Respondents), in this case, had filed application for registration of the mark “Lakshmandhara” in 1950 under class 5 of fourth schedule of Trademark Rules, 1942. Averments were made that they were honest user of the mark since 1923 and that their products were sold not only in India but in foreign market as well. Amritdhara Pharmacy (hereinafter referred to as Appelant) objected the application on the grounds that they were user of the mark “Amritdhara” since 1901, the name “Amritdhara” has acquired commendable reputation throughout India and the composite word “Lakhmandhara” was used to denote the same medical preparation as that of “Amritdhara”. The registration of mark “Lakshmandhara” by respondent is likely to deceive and cause confusion and thus the registration of the mark should be refused. In response to this a counter affidavit was filed by the Respondents claiming that they were honest user of the mark and that their mark does not deceptively resembles with that of appellant’s mark. The Respondent further alleged that the single word ‘dhara’ had no particular significance in relation to the medicine, nor did that word mean or convey any special or exclusive meaning or effect in relation to the medicine.

Proceedings

Primarily there were two issues involved in this case which were disputed before Registrar of Trade Marks, High Court and Supreme Court which are:

  1. Whether the mark “Lakshmandhara” closely resembles with the mark “Amritdhara” and is likely to deceive public.
  2. Whether there was any acquiescence on behalf of Amritdhara Pharmacy for the use of mark “Lakshmandhara” as contended by the Respondents.

Before Registrar of Trade Marks

As to the first issue, on the basis of evidence produced before it, Registrar held that there is sufficient similarity between the mark of Appellant and mark of Respondent so as to deceive and cause confusion among public. Had it been only the matter of trademark infringement, Registrar would have no hesitation in allowing opposition.

As to the acquiescence registrar found in the favour of Respondent as the advertisement for both the marks were made through same media and it cannot be said that the Appellant did not had knowledge of use of mark by the Respondent. And on the basis of circumstances Registrar allowed for registration of the mark “Lakshmandhara” for sale in the State of Uttar Pradesh only.

On such decision of Registrar two appeal were sought by Appellant and Respondent respectively before High Court.

Before Allahabad High Court

As to the honest concurrent use, the Court held in the favour of Respondent, but on the issue of acquiescence they held in favour of Appellant. They observed that from the fact that both the medicines were being advertised in the same journals or periodicals it did not follow that the attention of the appellant was drawn to the use of the word ‘Lakshmandhara’ by the respondent. Hon’ble High Court allowed for registration of mark “Lakshmandhara” throughout India and observed that:

“There is no possibility of any Indian confusing the two ideas. Even phonetical differences are wide enough not to confuse anybody. The claim of the Amritdhara pharmacy that both the words ‘Amrit and dhara’ have become so associated with their goods that the use of each part separately or in any combination is likely to mislead is an untenable claim. The whole phrase ‘Amritdhara’ had been registered and the monopoly has to be confined only to the use of the whole word. The words of common language like ‘Amrit’ and ‘dhara’ cannot be made the monopoly of any individual. We, therefore, see no reason to disallow registration of the trademark “Lakshmandhara”.”

Before Supreme Court

Hon’ble Supreme Court devised the test of imperfect recollection and overall impression in the appeal filed before them. As to the issue of similarity the court framed two questions i.e., (1) who the persons are whom the resemblance must be likely to deceive or confuse, and (2) what rules of comparison are to be adopted in judging whether such resemblance exists. The Court observed that the medical preparation in question is likely to be purchased by people with or without doctor’s prescription and an ordinary unwary consumer having imperfect recollection would not split the terms or even look for the etymological meaning of the two marks as observed by High Court, he would go for the overall structure and similarity. The court observed:

“A critical comparison of the two names may disclose some points of difference, but an unwary purchaser of average intelligence and imperfect recollection would be deceived by the overall similarity of the two names having regard to the nature of the medicine he is looking for with a somewhat vague recollection that he had purchased a similar medicine on a previous occasion with a similar name.”

And thus, the Court held that their exists overall similarity between two Trade Marks and High Court was erred in their observation.

On the question of acquiescence, the Hon’ble Supreme Court agreed with the observation and decision of the Registrar and thus upheld the decision of Registrar.

By Dhruv Dangayach

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Rooh Afza vs Dil Afza: Case Analysis

Hamdard National Foundation (India) & Anr. vs. Sadar Laboratories Pvt. Ltd., [ROOH AFZA vs. DIL AFZA] is a rather notable and recent example of the protection sought for the specific term used in a trademark, in which the individual terms are frequently used during specific product segment. The complainant, Hamdard National Foundation (India), is a charity organization founded in 1906 that places importance on distributing profits to promote the welfare of the community. The Hamdard business earnings have effectively gone to its establishment for many decades. The Complainants have manufactured and supplied Unani and Herbal medications, creams, flavorings, and non-alcoholic refreshments. The respondent company, Sadar Laboratories Pvt. Ltd. has been producing Unani medications, syrups, and plant-based items since 1949, when M/s. Sadar Dawakhana founded it.

Facts of the Case

The present complaint was filed since the respondent was infringing on the complainants’ trademark, ‘Rooh Afza,’ and passing off its goods as the complainants’ using the name ‘Dil Afza.’ The plaintiffs claim that they have established a significant reputation and brand image about ‘Rooh Afza,’ with total revenue of Rs.30, 983.57 lakhs in 2019-20 and up to Rs.16, 281.41 lakhs till August 2020. The plaintiffs have invested a substantial amount of money on advertising, as made evident by their expenditure of Rs.459.10 lakhs through 2019-20 and Rs. 577.89 lakhs through 2020-21, up to August 2020. The plaintiffs have also defined the decades in considerable detail when the trademark ‘Rooh Afza’ was first allowed to register for such products.   For a hundred years, the claimants’ product/sharbat was marketed in containers with the brand ‘Rooh Afza,’ with a unique color scheme, design, collection, and placement of components, most prominently a different and interesting floral pattern.

Issues raised

  1. Whether the defendant violates the plaintiff’s trademark rights?
  2. Whether the defendant’s registered trademark have legal validity?
  3. Is the defendant’s trademark likely to induce confusion amongst the consumers if used for competing products?

Plaintiff’s Argument

  1. The plaintiffs filed this claim to protect their trademark once they noticed in early 2020 that the defendant had developed ad campaigns publicizing its sweetener, having the mark ‘Dil Afza,’ in misleadingly similar ringlet containers to those of ‘Rooh Afza’ container. Furthermore, the defendant was using a confusingly similar label, and styling for its goods with bad intent. On June 10, 2018, the mark ‘Sharbat Dil Afza’ in the defendant’s name seemed to have been requested to be registered based on ‘intended to be used.’
  2. The plaintiffs contended that injunctions would probably be provided against the defendant. Since the defendant had used its trademark for medications, i.e., under Class-32, it expected certification in Class-5 in 2018, claiming that it had used the mentioned product for medications since 1949. The medications certificate, on the other side, was obtained just in 1976, however, the plaintiffs had already been supplying and advertising their brand as ‘Rooh Afza’ since 1907, many years before when the defendants registered their trademark in 1942.
  3. Roof Afza is a very popular trademark that fulfilled the definition of a “well-known trademark” as defined in Section 2(1)(zg), Trade Marks Act of 1999. Acquiring a drug permit was inadequate to assert use, and the defendant cannot release any paperwork, notwithstanding the opportunity to show that the expression ‘Dil Afza’ was in use from 1949. The trademark was claimed to have been acquired fraudulently since no evidence of use was provided to the Registrar. As a result, the registration was declared void, and the defendant has been unable to seek benefits u/s 28 of the Act. Distinctions in labelling and brand identities have also been considered insignificant due to the risks of confusion.

Defendant’s Argument

  1. The defendant firmly opposed to approving of plaintiff’s request for any injunctive order, claiming that u/s 29 of the Trade Marks Act, 1999, the violation claim was null and void since both marks were registered.
  2. The defendant claimed that the term ‘Afza’ has now become popular in the syrup market, with many businesses in the sharbat/syrup market using it. The counsel contended that the plea makes reference to ‘Hamdard’ as well as to ‘Rooh Afza,’ because it was ‘Hamdard,’ not ‘Rooh Afza,’ which was the renowned and prominent label, not ‘Rooh Afza,’ isolated. The plaintiffs did not obtain separate registrations for the terms ‘Rooh’ and ‘Afza,’ and the registration was for the whole title, i.e., ‘Rooh Afza.’ Meanwhile, the defendant had registered the entire ‘Dil Afza’ term and had not registered the terms ‘Dil’ or ‘Afza’ independently. Such filings would have been barred u/s 9(a) and (c) of the Trade Marks Act of 1999 and Section 11 of the Act. Furthermore, because ‘Afza’ is the common term used and there was a substantial distinction between the terms ‘Dil’ (meaning ‘heart’) and ‘Rooh’ (meaning ‘spirit’), no category of purchasers would be deceived into thinking that perhaps the defendant’s commodity was indeed linked to that of plaintiffs. All who want to purchase ‘Rooh Afza’ will indeed purchase ‘Rooh Afza.’  Thus, despite the common use of the word ‘Afza,’ there’s no space for confusion.
  3. The defendants also claimed that now the term ‘Dil Afza’ had been used in Class-5 from 1949. The term ‘Rooh Afza’ has also been used in Class-5. From 1949 until 2020, there had never been any doubt. Consequently, justifying that the defendant’s usage of the title “Dil Afza” for sharbat flavourings cannot be deemed dishonest or intended to provoke confusion. It was contended that since the defendant had developed its brand image, it was not a requirement for the defendant to obtain a misleading mark to profit from the plaintiffs’ goodwill.
  4. They also claimed there could be no confusion in distinguishing ‘Dil Afza,’ and ‘Rooh Afza,’ owing to the products’ design, styling, and labeling. The plaintiffs’ packaging comprised flowers, while the defendant’s packaging included fruits; the texts were distinctive; the defendant’s label also included the owner’s mark of ‘Sadar’ and its inscription at the top centre, clearly suggesting the origin of goods to be the defendant and to have nothing to do with plaintiffs’ mark of ‘Hamdard’; The colour of the cap is different as the plaintiff’s bottle has a yellow cover, whereas defendant’s bottle has a brown cover.
  5. Therefore, the plaintiffs can only claim the entire phrase for which they had obtained registration, and similar terms used in the sector cannot be offered distinctiveness. Furthermore, the plaintiffs had failed to prove that the term “Afza” had obtained a slightly different meaning, which was purely associated to their brand. Finally, no injunction order could be awarded because the remedy sought in the interim application was essentially the same as sought in the primary suit.

Judgment

On 6th January 2022, the Court pronounced the judgment in the matter. It was held that:

  • Both the plaintiffs’ and defendants’ marks, Rooh Afza and Dil Afza, are registered. A legitimate trademark registration gives the registered owner an exclusive authority to use trademark, except that the if two individuals are registered owners of similar trademarks, their exclusive entitlement to get any of those trademark rights cannot be imposed against one another.
  • The defendant’s mark could not be validly certified since it is nearly identical to the claimants’ trademark, which was registered in 1942 as well for the same products, i.e.,’sharbat.’ So there is a possibility of general misunderstandings.
  • Also, the plaintiffs’ allegation of having established a strong goodwill and brand image in connection with their brand name ‘Rooh Afza’ cannot be ignored even on preliminary grounds.
  • There is indeed a significant difference between both the words and no indistinguishable mark exists.
  • The similarity is preferred because both ‘Dil’ and ‘Rooh’ elicit powerful emotions and have the word ‘Afza.’ Even as courts have repeatedly noticed, the requirement to be used in evaluating misunderstandings emerging in the head is of a buyer with flawed recollection and regular subjectivity.
  • Even if the consumers were particularly fond, it is hard to fathom that the use of the terms ‘Rooh’ and ‘Dil’ will indeed cause confusion due to its strong sentimental overtones. Buying a bottle of sharbat may evoke emotions, although not to the profundities anticipated by the plaintiffs. All who recognise this prominent feeling will, in any case, be capable of distinguishing between ‘Rooh’ and ‘Dil.’ Nevertheless, the courts expressed concern about the consumer, for whom the words ‘Dil’ and ‘Rooh’ will not have the same meaning in regular usage. The two words’ understandings are indistinguishable.
  • In addition, the complainants do not indicate having to apply for or obtaining registration for the restricted usage of the term “Afza.” Consequently, the plaintiffs may just contend privilege for the entire phrase ‘Rooh Afza,’ rather than each of the two elements that create the brand name.
  • Nevertheless, the request is denied, with the defendant ordered to maintain accurate records of ‘Dil Afza’ revenues.

Conclusion

Consequently, the plaintiffs can only assert privilege over the entire term ‘Rooh Afza.’ Regardless of the fact that Dil Afza arrived the industry in 1976, there seems to have been peaceful equilibrium with no misunderstandings in the heads of consumers for this long time in the much more delicate healthcare industry. Consequently, Dil Afza won a favorable ruling, bolstering the notion of the phrase combination in use for trademark rights.

Author: Adyasha Das, Symbiosis Law School, Hyderabad

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PayTM Y PayPal dispute over a logo: A trademark battle

Paytm is an Indian e-commerce platform primarily dealing with digital payments. In 2016, PayPal, an US-based international digital payment company accused Paytm of trademark infringement. PayPal issued a Notice of Opposition in Paytm’s trademark registration application under Class 38. With its presence in over 190 countries and having the competency to transact in over 100 currencies, PayPal has become one of the world’s largest online payment services.

After demonetization was implemented in India, there was a massive amount of increase in subscribers of Paytm. Paytm had 300 million registered users by August 2018. This figure compares with 520 million Alipay users and 237 million PayPal users around the same time. On average, one in five Indians had already started useing Paytm.

Paytm filed its application for trademark in 2012. However, it was advertised in the Trademark Journal (No. 1754) on July 18, 2016 only. Section 21 of the Trademark Act, 1999, enables any person to oppose a trademark by filing Form TM-5 within 3 months of the advertisement of such mark in the TM Journal, with a maximum extension of another month. PayPal filed its Notice of Opposition on November 18, 2016, with the Indian trademark office.

Contentions of PayPal (Plaintiff)

PayPal alleged that Paytm’s logo was “deceptively and confusingly similar” to its own. PayPal alleged that Paytm had “adopted the two-tone blue colour scheme” of its registered trademark logo. Also, the two brands start with the word “Pay” and has same nature of business existing in the same market, thus confusing consumers at a glance.

According to PayPal, Paytm has violated the following provisions:

  • Section 9(2)(a) of the Trademarks Act, 1999, provides deception or confusion as an absolute ground for refusal of a trademark registration,
  • Section 11 of the Act provides for similarity with an ‘earlier trademark’ as relative ground for refusal of a trademark registration,
  • Section 11(2) states that usage of the similar trademark would be inimical to the distinctive character of its trademark, and
  • Section 11(3) as it would amount to passing off.
  • Paytm is precluded from relying on Section 11(4) of the Act which allows the applicant to seek the consent of the earlier trademark holder.
  • Section 11(10) as there is an element of bad faith involved.
  • Section 18 as it disallows the registrar from registering trademarks where there is no honesty involved, with the original proprietor being the owner of the trademark.

On the contrary, Paytm has declined to comment on the allegations.

Analysis

It is not appropriate for PayPal to claim exclusivity over a generic word like “Pay”. Delhi Hing Court has decided in a case that generic word like “Today” cannot be claimed to be exclusive by any of the news company groups.[1]

In India, the trademark law protects colors to the extent the colors or combination of colors confer a distinctive characteristic upon a product or service. Schedule 10 of the Trademarks Act deals with use of colors:

  1. A trademark may be limited wholly or in part to any combination of colors and any such limitation shall be taken into consideration by the tribunal having to decide on the distinctive character of the trademark.
  2. As far as a trademark is registered without limitation of color, it shall be deemed to be registered for all colors.

Here, the two-tone blue color in question, is not identical but they are similar.

Then, it has to be considered whether the whole package – name, font, and colors – used by Paytm and PayPal are similar enough for consumers, with average mind in India, to be misled into buying or choosing the other product.

As a matter of fact, ordinary consumers like fruit or vegetable vendors, taxi drivers, regular workers, small hotel owners, use and hear the word “Paytm” every day of their life, and they may not even know about the existence of PayPal. PayPal’s existence in the Indian market is limited generally to eBay shoppers, freelancers and IT software developers that are exposed to global economy much more than the ordinary consumers, which implies that if PayPal and/or Paytm were to conduct a survey, it would likely result strongly in favor of Paytm.

Order of the TM Registrar

The opponent, i.e., PayPal has withdrawn their opposition to the registration of Paytm’s trademark via a letter dated 25.06.2021. The order of the TM Registrar dated 12.07.2022, states that since PayPal withdrew their opposition, Paytm was successful in registering its trademark under class 38 in India.

Author: P.I. Shivamirthika.

Reference:

Mugdha variyar ‘Shades of brand envy in Paypal’s row with Paytm’ Economic Times (2016) available at https://economictimes.indiatimes.com/small-biz/startups/shades-of-brand-envy-in-paypals-row-with-paytm/articleshow/56057299.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Priyanka Pani, ‘Paytm has copied our logo: PayPal’ (2018) available at https://www.thehindubusinessline.com/info-tech/paytm-has-copied-our-logo-paypal/article64325546.ece

‘PayPal and Paytm Trademark Dispute’ (2016) Banana IP Counsels available at https://www.bananaip.com/ip-news-center/paypal-paytm-trademark-dispute/

Vasundhara Majithia, “The PayMark Battle: Whose Blue is it Anyway?” 2017 available at https://spicyip.com/2017/01/the-paymark-battle-whose-blue-is-it-anyway.html

Rahul Vijh, “PayPal Accuses Paytm of Trademark Infringement in India” (2017) available at https://www.ipwatchdog.com/2017/01/02/paypal-accuses-paytm-trademark-infringement-india/id=75995/

Samden Sherpa, “PayPal VS Paytm: Find Out What the Dispute is All About” (2016) avaible at- https://www.gizbot.com/apps/news/paypal-vs-paytm-find-what-the-dispute-is-all-about-036920.html

Arvind Panagariya, “Digital Revolution, Financial Infrastructure and Entrepreneurship: The Case of India” (November 18, 2019), SIPA’s Entrepreneurship & Policy Initiative Working Paper Series, 2019 available at http://dx.doi.org/10.2139/ssrn.3493341

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[1] Living Media India Ltd. & Anr. vs Alpha Dealcom Pvt. Ltd. & Ors.

Trademark Registration in India

Trademark as a term, refers to name of the product, services or business and comprises name, logo and tagline. Trademark is a valuable business asset and shall be registered in the countries where such trademark is to be used.

In the Trade Marks Act of 1999, section 2(m) defines a “mark” as a device, brand, heading, label, ticket, name, signature, word, letter, numeral, shape of goods, packaging or combination of colours. It is important to choose the trademark for a business carefully so that the customers can distinguish the services or goods from others. Distinct trademarks not only help companies to build a strong trademark but also makes the process of trademark registration smooth because there are less objections during the process of registration. Further, a distinct trademark is less likely to get into any legal disputes. Thus, coining the right mark and protecting it in the initial phase helps in multiple ways.

According to the report of Forbes, the top 10 most valuable trademarks are as below:

SN Brand Value value (Billion USD)
1 Apple 241.2
2 Google 207.5
3 Microsoft 162.9
4 Amazon 135.4
5 Facebook 70.3
6 Coca-cola 64.4
7 Disney 61.3
8 Samsung 50.4
9 Louis Vuitton 47.2
10 McDonald’s 46.1

Source: https://www.forbes.com/the-worlds-most-valuable-brands/#6fbd52bb119c

Section 2(1)(zg) of the Trademarks Act defines well-known trademark as, “a mark which has become so to the substantial segment of the public which uses such goods or receives such services that the use of such mark in relation to other goods or services would be likely to be taken as indicating a connection in the course of trade or rendering of services between those goods or services and a person using the mark in relation to the first mentioned goods or services.” Some of the well-known trademarks include, Amul, Coca-Cola, Pepsi, McDonald and Dominos etc.

Steps for trademark registration

  1. Trademark search

The purpose of trademark search is to identify the similar trademarks that are already filed for or registered and assess strength of the trademark. Trademark search is required to be done before trademark application is filed. Trademark search is performed in specific class (s) of goods and services, as specified in the Trademarks Act.

  1. Filing application for trademark registration:

Application for trademark registration in the desired class(s) along with the prescribed forms and fee may be filed online. As soon as application is filed, the application number is generated. Any person, including, an individual, company, proprietor, or legal entity claiming to be the owner of the trademark can apply for Trademark Registration.

Documents required for filing a Trade Mark Application in India are as below:

  1. Trademark or logo in .jpg format
  2. Applicant details like name, address, nationality, phone number and email ID
  3. Goods or services to register
  4. Date of first use of the trademark in India, if used prior to filing the application.
  5. Power of attorney, to be signed by the applicant

  1. Examination report

After a trademark application is filed, the examiner reviews it and sends examination report on certain grounds to be replied by the applicant. In the report, there may be objections to be complied if the mark is similar to any of the existing trademarks. However, in case there is no objection raised by the Trademark Registry, the mark shall advertise it in the Trade Marks Journal. Within four months of such publication, any third party(ies) may raise opposition to the grant of registration of the trademark. In case no opposition is raised by any third party (ies) within the stipulated timeline, the trademark shall proceed for registration.

  1. Registration & renewal

Once registered, a trademark is valid for 10 years from the date of filing, which can be renewed from time to time for another period 10 years.

Conclusion

Trademark is a valuable business asset. It is important to choose right trademark and register it so that you can claim ownership on it and use it effectively for your business.

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