Recently Delhi H.C held that Trademark value can be estimated in monetary terms as the proprietor invests in publicity and building reputation.
The Delhi high court bench consists of Justice Vibhu Bakru and Justice Amit Mahajan in ‘ Mr. Sanjay Chadha Trading as m/s EVEREADY Tools Emporium v. Union Of India v Ors. Decided that Trademark is a ‘valuable asset’ even though it is intangible.
Trademark Value
Trademark simply means a symbol, words legally registered or established by use as representing a company or product. It is a type of Intellectual Property. A Trademark value distinguishes one particular product or service from others. A trademark value is protected by its proprietors, it will constitute trademark infringement when other than the proprietor. Trademarks are protected under Trademark Act, of 1999.
PASSING OFF: It is an illegal act of selling a product or service that is similar to one that another company has legally protected by a trademark. Reputation, misrepresentation, and damage to goodwill are the 3 fundamental elements of Passing Off.
BRIEF FACTS
The present appeal petition filed by the appellant was aggrieved by the order of a single bench on 17, February 2022 rejecting the plea of the sole proprietor of M/s Eveready Tools Emporium whose registration of trademark in ‘Eveready’.
The appellant engaged in manufacturing and marketing hand tools like Screwdrivers. He contended that the business was started by his mother in the name of ‘ Everest Tools Industries ‘. In the 1980’s she was granted the registration for trademark ‘ Everready’ and also for registration for the device mark.
But later the appellant’s registration was canceled by IPAB( Intellectual Property Appellate Board) under a petition filed by ‘Eveready Industries India Limited, which is a popular manufacturer of batteries, flashlights, and small home appliances. The order passed by IPBA canceled the appellant’s registration of a trademark.
The appellant filed a case before the single bench against the order passed by the IPAB.
The findings of the Intellectual Property Appellate Board follow:- The ‘Eveready’ is a well-known and famous trademark manufacturer registered in 1942 and it is an internationally recognized trademark. But the appellant industry was registered in the 1980s.
The court after analyzing the order of the IPAB, also noted that in the years 1990-91 the sales turnover of the industry was 229.70 crores. And they spent 3 crores on promotional work in the same year.
But the Eveready company started in 1978 and there are chances of confusing people’s minds regarding the trademark of EVEREADY and Eveready.
It is well established that, ‘ Eveready Industries India Limited is a well-known industry with a substantial reputation. It is illegal to use the words ‘ever’ and ‘ready’ jointly as their goodwill can not be faulted. The court thinks that the appellant adopted the Trademark of ‘Eveready’ to make an unfair disadvantage of its reputation.
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