Source: www.delhihighcourt.nic.in
Introduction
Trademark registration guarantees the
proprietor certain set of exclusive rights. These exclusive rights not only
provide a unique trade identity to the proprietor, but also ensures that nobody
else violates these rights, misuses, or copies the trade name or trademark in
any manner. In legal terms, violation of the exclusive rights attached to a registered
trademark without the authorization or licensees from the proprietor is termed
as trademark infringement. To prove trademark infringement in India, the Court
considers several factors. Some of these factors are[1]:
- The degree of similarity between
     the two marks: In this
     factor usually, the Indian Courts compare the marks in question and take
     note of the resemblance between the marks in question, phonetic, or visual
     or similarity in idea. The deciding element of similarity is the mind of
     consumer having average intelligence. 
 - Presumption of Confusion: Once a brand enters in the market
     and establishes itself, it leaves an impression in the minds of the
     people. The consumers start associating the registered mark to the brand
     for which it is used. In such a case, when any other entity or individual
     uses a similar or identical mark in order to confuse the consumer
     regarding the origin of the good, is when this factor is proved. A
     deceptive mark can be said to be such a mark, which is likely to cause
     confusion in the minds of the buyer.
 - Reputation of the Registered mark: This factor looks at the level of
     popularity that the registered mark has achieved within the territory of
     India. 
 - Usage with or without authorization: The Court would take note of the
     fact that the application of the mark was without proper authorization or
     license from the registered proprietor and the alleged infringer had full
     knowledge of this fact.
 - Comparison of the two marks in
     totality: The Courts
     have repeatedly reiterated that, in case of trademark infringement the
     marks in question would be considered in totality and not in parts.  
 - Prior use: Another important and deciding factor
     would be ‘prior use’ of a trademark. This is a defence in infringement
     cases. The rights of a prior user of the mark are kept on a higher
     pedestal than even that of the proprietor of a registered trademark. The Court
     would consider which party had been using the mark earlier than the other.
     
 
The Delhi High Court on February 19,
2018 in the case of Sun Pharma
Laboratories Ltd v. Lupin Ltd & Anr, held that, ‘it is a settled legal position that while
comparing the trademarks, the marks have to be taken as a whole. Merely because
the Defendant was using a part of the mark earlier cannot be a ground to plead trademark
infringement’. The Court further clarified that the mark cannot be split
and then compared, as is sought to be done in this case.
Facts of the Case
- Sun Pharma
     Laboratories (hereinafter referred to as ‘the Plaintiff’) is a wholly
     owned subsidiary of Sun Pharmaceutical Industries Ltd. and in order to
     strengthen its organizational structure of Domestic Formulation
     Undertaking, Sun Pharmaceutical Industries Ltd. vide Scheme of
     Arrangement, spun off its domestic formulation division undertaking
     including intellectual property thereof to the Plaintiff. 
 - On May 5,
     2013, the Bombay High Court approved the above Scheme of Arrangement, because
     of which the Plaintiff became the proprietor and owner of all the IP
     rights of Sun Pharmaceutical Industries Ltd. for the domestic formulation
     undertaking activities. 
 - The Plaintiff
     thus recorded itself as the subsequent proprietor of the trademarks with
     the Trade Marks Registry. 
 - One of the
     medicine, used for treatment of non-insulin diabetic patients, of the Plaintiff
     is marketed under the trademark TRIVOLIB, which according to Plaintiff, is
     a coined mark.
 - Lupin Ltd.
     (hereinafter referred to as ‘Defendant No.1’) markets the medicines
     manufactured by Defendant No.2. 
 - In the third
     week of September 2014, it was found by the Plaintiff that the Defendants are
     marketing its medicine under the mark TRI-VOBIT 1 and TRI-VOBIT 2
     (hereinafter referred to as ‘impugned marks’) in Delhi. The composition of
     the medicine was also alleged to be similar. 
 - According
     to the Plaintiff, the impugned marks are phonetically and deceptively
     similar to the Plaintiff’s registered mark TRIVOLIB. The Plaintiff filed
     the present suit as the actions of the Defendants constituted
     infringement, passing off and unfair competition.
 
Plaintiff’s Contentions 
- The Plaintiff
     contends that the mark TRIVOLIB was coined by it in August 2011 and is
     used extensively since then. The trademark TRIVOLIB is also registered in
     Class 5 vide registration dated August 12, 2011.
 - It was
     submitted by the Plaintiffs that from October 1, 2011 till March 3, 2012,
     it had sold products worth INR 2,86,00,000 (USD 440,440 approx.). From April
     1, 2012 to March 31, 2013, the sale figure jumped up to INR 13,39,00,000
     (USD 2,062,060 approx.). Further, the sales increased up to INR 24,39,00,000
     (USD 3,756,060 approx.).
 - It further
     submitted that the consumers at large distinguish, identify, and associate
     TRIVOLIB with the Plaintiff. In addition, it pleaded that the mark is a well-known
     trademark in India. 
 - It was
     alleged that the Defendants have adopted the impugned trademarks having
     seen the success of the Plaintiff’s medicine without any reason. 
 - It pointed
     out that the search by the software of the Plaintiff did throw up
     TRI-VOBIT 1 and hence the objections were filed. Since the software did
     not throw up the name of TRI-VOBIT 2, the filing of opposition regarding
     the same was missed. However, it has applied for cancellation of the said trademark
     to the Trade Marks Registry. 
 
Defendant’s Contentions
- It
     submitted that no case for trademark infringement is made out, as it is
     the registered proprietor of the mark TRI-VOBIT 2 in Class 5. 
 - With
     respect to the allegation of passing off, the Defendants submitted that
     the Plaintiffs have failed to establish the acquired goodwill in the mark
     TRIVOLIB. Therefore, the case of passing off is not made out. 
 - It stated
     that it has launched the mark TRIVOLIB in October 2012. Further, it was
     contended that the Defendant No. 1 is the registered proprietor of the
     mark VOBIT, which was bona fidely adopted prior to the Plaintiff. The
     trade mark VOBIT was used for the first time by the Defendants in 2008
     whereas the Plaintiff has been using the trade mark TRIVOLIB since August
     2011, only the word TRI has been prefixed to the word VOBIT since October
     2012.
 - The word
     TRI in the mark signifies a combination of three drugs, which in the
     present case were Voglibose, Metformin Hydrochloride and Glimepiride
 - It pointed
     out that the Plaintiff themselves stated that they have no objection to
     the Defendants using the trademark VOBIT or from the Defendant using the prefix
     TRI. Hence, it was pleaded that the Plaintiff had no right to seek
     injunction against the combination of TRI and VOBIT.
 - It threw
     light on the fact that the Plaintiff only opposed the trademark
     application for the trademark TRI-VOBIT 1. They never filed an opposition
     to application for registration of mark TRI-VOBIT 2. Hence, they contended
     that the Plaintiff could not now turn around and say that they have rights
     in the said trademark.
 
Court’s Decision
- The Court
     pointed out that when the suit was filed the trademark of the Defendants TRI-VOBIT
     2 was not registered. It was registered about 14 days after filing of the
     suit. It opined that ‘mere moving of
     an application, for revoking the registration of the trade mark in favor
     of the Defendant, by the Plaintiff before the Trade Marks Registry would
     not confer any rights for the present on the Plaintiff.’
 - It held
     that if the essential ingredients of
     passing off were made out, a suit for passing off would lie against the Defendants,
     despite registration of the trademark TRI-VOBIT 2. 
 - The Court
     agreed that the Plaintiff was a prior user of the trademark TRIVOLIB. It
     commenced use of the trademark in October 2011. The sales documents placed
     by the Plaintiff were also took into consideration by the Court. With
     respect to the Defendant, the Court pointed out that no other details were
     given, except the commencement of usage of its trademark TRI-VOBIT only in
     October 2012 and having sold over 15 lakh strips. Therefore, the Court
     held that the Plaintiff has made out
     a prima facie case of having built substantial goodwill and reputation in
     the market. The Plaintiff is a much prior user of the brand TRI VOLIB and
     has vested rights in the said trademark.
 - With
     regards to ‘Deceptive Similarity’ between the marks, the Court reiterated
     that the test is to see as to whether the essential features of the trademark
     of the Plaintiff have been adopted by the Defendants. It held that ‘the trade mark of the Defendants
     TRI-VOBIT is prima facie phonetically and structurally similar to the
     trade mark of the Plaintiff TRIVOLIB. Further, the two drugs of the
     parties are for the same ailment. The likelihood of confusion cannot be
     ruled out. There is no merit in the contentions of the Defendant to the
     contrary.’
 - The Court
     also clarified that while comparing the trademarks, the marks have to be
     taken as a whole. The plea of the Defendant as being the prior user of the
     mark is completely misplaced. It held that ‘VOBIT has to be compared with TRIVOLIB. When we compare the two
     words, it is manifest that TRI-VOBIT is structurally and phonetically
     similar to the trademark of the Plaintiff TRIVOLIB. Merely because the Defendant
     was using VOBIT earlier cannot be a ground to plead that the words have to
     be split and then compared as is sought to be done.’ 
 
[1]Please
note that the factors are only illustrative. It is not necessary that all the
factors are considered while determining similarity of marks. Every case would
be measured on its own facts, circumstances and evidences. Where a totality of
circumstances indicates trademark infringement it will be enough to get the
remedies. 
.

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