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        Case ID :

        1985 (11) TMI 239 - HC - Indian Laws

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        Prior user protection for a coined trade mark extends against a trading style that uses the dominant mark, but accounts need proof of actual passing off. A coined and fanciful mark such as SUPERFLAME can acquire exclusive proprietary association through prior user and market identification, even if it is ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                        Provisions expressly mentioned in the judgment/order text.

                            Prior user protection for a coined trade mark extends against a trading style that uses the dominant mark, but accounts need proof of actual passing off.

                            A coined and fanciful mark such as SUPERFLAME can acquire exclusive proprietary association through prior user and market identification, even if it is not descriptive in ordinary language. Use of Blue Superflame Industries was found likely to misappropriate that goodwill because the added words did not remove the dominant feature of SUPERFLAME. Injunctive protection and delivery up of infringing labels and related tooling were therefore warranted. However, an account of profits was refused because actual passing off of the goods themselves was not proved, as the appliance branding and labels differed and the evidence did not support such a finding.




                            Issues: (i) Whether the plaintiff was the prior user and owner of the trade mark/house mark SUPERFLAME in relation to gas appliances; (ii) Whether the defendants' use of the trading style Blue Superflame Industries was likely to pass off their goods or business as those of the plaintiff; (iii) Whether the plaintiff was entitled to injunctive and ancillary reliefs.

                            Issue (i): Whether the plaintiff was the prior user and owner of the trade mark/house mark SUPERFLAME in relation to gas appliances?

                            Analysis: The expression SUPERFLAME was held to be a coined, fancy and meaningless word, not shown to be common to the trade or descriptive in its ordinary linguistic sense. The Court applied the statutory concepts of trade mark, mark and name under the Trade and Merchandise Marks Act, 1958, and held that a word or name can acquire exclusive proprietary association by prior user and public identification. On the evidence, the mark had been used by the plaintiff before the defendants and had become identified in the market with the plaintiff's goods.

                            Conclusion: The issue was decided in favour of the plaintiff.

                            Issue (ii): Whether the defendants' use of the trading style Blue Superflame Industries was likely to pass off their goods or business as those of the plaintiff?

                            Analysis: The Court found that the addition of the words Blue and Industries did not dispel the prominence of the adopted word SUPERFLAME, because the decisive element remained the coined mark already associated with the plaintiff. The use of that word in the defendants' trading style was treated as a deliberate attempt to trade upon the plaintiff's reputation and to create an impression of connection in the course of trade. However, the evidence did not establish that the defendants' goods themselves were actually being passed off as the plaintiff's goods, since the labels and front branding on the appliances differed and the plaintiff's own witnesses did not support a finding of actual passing off of goods.

                            Conclusion: The issue was decided partly in favour of the plaintiff and partly against the plaintiff.

                            Issue (iii): Whether the plaintiff was entitled to injunctive and ancillary reliefs?

                            Analysis: Since the plaintiff established exclusive association of SUPERFLAME with its business, injunctive protection was warranted against use of the word in the defendants' trading style. At the same time, the absence of proof of passing off of goods meant that an account of profits was not justified. The Court also directed delivery up of infringing labels and related tooling to the extent connected with the impugned use.

                            Conclusion: The plaintiff was granted injunctive relief and delivery up, but was denied accounts.

                            Final Conclusion: The suit succeeded in substance to the extent of protecting the plaintiff's proprietary rights in the coined mark SUPERFLAME and restraining its use in the defendants' business name, while rejecting the claim for accounts because actual passing off of goods was not proved.

                            Ratio Decidendi: A coined or fancy word that has become identified with a trader's goods through prior use and market association can be protected against use by others in a trading style, even if additional words are added, but monetary accounting requires proof of actual passing off.


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