Facts of the Case
DS Confectionery Products Limited, the plaintiff, is part of
the Dharampal Satyapal Group and is engaged in diverse business sectors,
including food and beverages and confectionery products. The plaintiff entered
the candy segment with its PULSE branded candy, including the “Kachcha
Aam with Tangy Twist” product. The candy was conceptualised around early 2013
and introduced for sale to the public in December 2014.
The plaintiff subsequently launched PULSE candies in
additional flavours, including Guava and Orange in 2016 and Pineapple and
Litchi in 2017. It also launched a sweetened drink and a “no salt, sugar free”
candy variant under the PULSE mark.
The plaintiff relied upon extensive advertisement and
promotional expenditure and substantial sales figures. Significantly, sales of
products under the PULSE trademark increased from approximately ₹1.89 crore
to ₹329.17 crore during the period referred to in the judgment. The
plaintiff also relied upon various trademark registrations and applications in
Class 30 and Class 32.
The plaintiff further asserted that the Delhi High Court, in Dharampal
Satyapal Sons Private Limited v. Mr. Akshay Singhal & Ors., CS(COMM)
129/2019, had already declared PULSE to be a “well-known trade mark”
within the meaning of Section 2(1)(zg) of the Trade Marks Act, 1999.
The plaintiff also claimed copyright protection in the
artistic features of its PULSE labels under Section 2(c) of the Copyright
Act, 1957, including copyright registration for artistic work relating to
its orange and guava flavoured candy labels.
Around the first week of May 2020, the plaintiff discovered
that the defendants were advertising and selling candies under the marks PELSE
and PLUS++, including raw mango-flavoured candies, with allegedly
similar packaging and trade dress under the SNEH trading style. Internet
searches also revealed listings connected with M/s Silver Products,
through which the allegedly infringing goods were offered.
The comparison reproduced in the judgment, particularly on
pages 9 to 11, showed alleged similarities in the writing and placement of the
marks, colour outlining, slant division of packaging, mango imagery, tagline
positioning, jar presentation and overall visual arrangement. The Court
examined these similarities as part of its deceptive-similarity analysis.
Issues Involved
The principal issues before the Court were whether the
defendants’ use of PELSE and PLUS++ was deceptively similar to
the plaintiff’s registered and well-known PULSE trademark; whether the
defendants’ colour scheme, packaging and overall trade dress amounted to
infringement and passing off; whether such use also violated the plaintiff’s
copyright in the artistic work embodied in its labels; whether the matter was
fit for summary judgment under Order XIII-A of the Code of Civil Procedure,
1908, as applicable to commercial disputes, read with Rule 27 of the
Delhi High Court Intellectual Property Division Rules, 2022; and whether
the plaintiff was entitled to permanent injunction, damages and costs.
Plaintiff’s Arguments
The plaintiff contended that it was the proprietor of the
PULSE trademark for hard flavoured candies and fruit candies and that the mark
had acquired extensive reputation, goodwill and distinctiveness through
substantial sales, advertising and market presence.
It argued that PULSE had already been judicially
recognised as a well-known trademark under Section 2(1)(zg) of the Trade
Marks Act, 1999, thereby strengthening the protection available against
deceptively similar marks.
The plaintiff submitted that the defendants’ marks PELSE
and PLUS++ were visually, structurally and phonetically similar to
PULSE. According to the plaintiff, minor alterations such as replacing “U” with
“E”, deleting or modifying a letter, or adding “++” did not create sufficient
distinction.
The plaintiff further contended that the defendants had
imitated the essential visual features of its packaging, including the
twin-colour combination, placement of fruit imagery, slant division of the
package, central positioning of the brand name, mango depiction, tagline
placement and jar presentation.
It was also argued that the PULSE labels constituted original
artistic works within Section 2(c) of the Copyright Act, 1957, and that
the defendants’ imitation infringed the plaintiff’s copyright.
Since the defendants failed to contest the proceedings and the
plaintiff’s assertions remained unrebutted, the plaintiff sought summary
judgment under Order XIII-A CPC read with Rule 27 of the IPD Rules, 2022.
Respondents’ / Defendants’ Arguments
No substantive defence was advanced by the defendants.
The defendants failed to enter appearance despite service and
did not file written statements. The Court recorded that they had been
proceeded ex parte. Consequently, the plaintiff’s material assertions
remained unrebutted.
An ex parte ad interim injunction had initially been
granted on 17 June 2020, restraining the defendants from manufacturing,
selling, offering for sale or advertising goods bearing the impugned marks PELSE
and PLUS++. Thereafter, on 20 August 2020, the defendants were proceeded
ex parte, and the interim injunction was made absolute until adjudication of
the suit.
Court’s Findings and Order
The Delhi High Court found that the plaintiff was the
proprietor of the PULSE mark used for hard flavoured candies and fruit
candies and noted that the mark had previously been recognised as a well-known
trademark under Section 2(1)(zg) of the Trade Marks Act, 1999.
The Court held that PLUS++ and PELSE were
deceptively similar to PULSE. It specifically found that the mere
addition of the sign “++”, deletion or alteration of a letter, or
replacement of the alphabet “U” with “E” did not create sufficient
distinction. The marks remained phonetically and deceptively similar.
The Court also found that the defendants’ adoption of the
twin-colour combination and the presence and placement of fruits in the trade
dress added to the deceptive similarity. The colour scheme and overall
packaging of the defendants’ products were also found deceptively similar to
those of the plaintiff.
Relying upon Mondelez Foods India Pvt. Ltd. and Another v.
Neeraj Food Products, 2022 SCC OnLine Del 2199, which in turn referred to ITC
Ltd. v. Britannia Industries Ltd., (2016) 233 DLT 259, the Court emphasised
that for inexpensive edible products sold over the counter, the colour
scheme of packaging plays an important role in the consumer’s initial choice.
Even where a purchaser later discovers the mistake, confusion creating initial
interest may sustain an action for passing off.
Accordingly, the Court found the defendants guilty of:
- Infringement
of the plaintiff’s registered trademarks
- Passing
off
- Violation
of copyright vested in the plaintiff’s registered artistic work
- Adoption
capable of deceiving unwary consumers
- Dishonest
adoption of similar marks and trade dress
The Court further held that the defendants had neither filed
written statements nor entered appearance to defend the suit. It therefore
found the case appropriate for summary judgment under Order XIII-A CPC,
as applicable to commercial disputes, read with Rule 27 of the Delhi High
Court Intellectual Property Division Rules, 2022.
Ultimately, the Court passed a decree of permanent
injunction in favour of the plaintiff and against the defendants in terms
of the specified prayers in the plaint.
The Court also awarded:
Damages: ₹2,00,000
Costs of the suit: Awarded to the plaintiff
A decree sheet was directed to be drawn accordingly.
Important Clarification
This judgment is particularly important because it clarifies
that minor spelling modifications or symbolic additions do not necessarily
avoid trademark infringement where the competing marks remain phonetically,
visually or structurally deceptive.
The Court’s finding demonstrates that:
PULSE vs PELSE — substitution of “U” by
“E” was insufficient to create meaningful distinction.
PULSE vs PLUS++ — alteration of lettering
and addition of “++” was insufficient where the resulting mark remained
deceptively similar.
The judgment further clarifies that trademark comparison is
not restricted to word marks in isolation. Courts may consider the overall
commercial impression, including:
- Colour
combinations
- Packaging
layout
- Placement
of brand names
- Slant
divisions
- Fruit
imagery
- Tagline
positioning
- Jar
design and presentation
- Overall
trade dress
A further significant clarification concerns low-priced,
over-the-counter edible goods. In such products, consumers may make
purchasing decisions quickly, and packaging colour schemes can materially
influence initial product selection. Therefore, even initial interest
confusion can support a passing-off claim.
The judgment also confirms that in commercial intellectual
property disputes, a full trial is not invariably necessary. Where the
defendant has no real prospect of successfully defending the claim and no
compelling reason exists for a trial, the Court may grant summary judgment
under Order XIII-A CPC.
Sections Involved
Trade Marks Act, 1999
Section 2(1)(zg) — Definition of
“well-known trade mark”; directly significant because PULSE had been judicially
recognised as a well-known trademark.
Sections 28 and 29 —
Relevant to the registered proprietor’s exclusive rights and infringement of
registered trademarks in the context of the Court’s finding that the defendants
infringed the plaintiff’s registered marks.
Passing Off Principles —
Independent common-law protection against deceptive misrepresentation causing
confusion regarding source, connection, association or commercial nexus.
Copyright Act, 1957
Section 2(c) — “Artistic work”; relied
upon in relation to the PULSE labels and packaging artwork.
The Court found violation of the plaintiff’s copyright in the
registered artistic work bearing Registration No. A-122599/2017.
Code of Civil Procedure, 1908
Order XIII-A — Summary Judgment in
commercial disputes; applied because the defendants had no real prospect of
successfully defending the claim and there was no compelling reason requiring a
trial.
Delhi High Court Intellectual Property Division
Rules, 2022
Rule 27 — Invoked along with Order XIII-A CPC in considering and granting summary judgment in the intellectual property dispute.
Link to download the order -https://mytaxexpert.co.in/uploads/1783155634_869compressed.pdf
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