STANDARD ELECTRICALS LIMITED Vs. ROCKET ELECTRICALS

JUDGEMENT

(1.) This order will dispose of IA 3314/03 filed by the plaintiff under Order 39 Rules 1 and 2 CPC for grant of ad-interim injunction for restraining the defendants from manufacturing, selling, offering for sale or in any manner using the trade mark MS STANDARD or any other mark identical/ deceptively similar to the plaintiffs trade mark STANDARD, in relation to the electrical switchgear including MCBs, isolators, RCCBs, distribution boards, FR PVC wires, MCCBs, switch disconnector fuses, changeover-rewirable-double break switches, HBC fuses and plugs and sockets etc. and/or cognate and allied goods and further from doing any other thing as may constitute passing off and acts of unfair competition and from doing any act as may result in dilution of the plaintiffs trade mark and trade name and IA 3843/03 filed by defendant No. 2 under Order 39 Rules 3 & 4, CPC for vacating the ex-parte ad-interim injunction order dated 21.3.2003 whereby the defendants were restrained, as requested by the plaintiff in IA 3314/03 above-mentioned.

(2.) In the passing off action suit, the plaintiff has sought permanent injunction in the same term in which interlocutory injunction was prayed for in IA 3314/03. In addition, a prayer was also made for decree of damages for a sum of Rs. 5,50,000/-in favour of the plaintiff against the defendants and further a decree for rendition of accounts of the profit earned by the defendants and further a decree directing the defendants to deliver all the products bearing the infringed trade mark MS STANDARD etc. The allegations made in the plaint, in brief, are that a Company in the name of Indo Asian Traders (P) Limited was incorporated in 1958. Its name was changed thrice and lastly, it was changed to Standard Electricals Limited, the plaintiff herein. The plaintiff is a leading manufacturer of wide range electrical equipments, i.e., electrical switchgear including MCBs, isolators, RCCBs, distribution boards, FR PVC wires, MCCBs, switch disconnector fuses, changeover-rewirable-double break switches, HBC fuses and plugs and sockets etc. The products of the plaintiff are sold under the trade name STANDARD and they have acquired unparallel reputation on account of wide publicity and extensive advertisements. The plaintiff is proprietor of registered trade mark STANDARD in relation to its goods since 1958. It has six trade mark registrations in its favour, as detailed in para-5, which are 'IAT Standard'. 'Standard S in triangle India', 'Standard Kopp', 'Standard Switchgears'. 'Standard (in logo form)' and 'Standard Switchgear life guards in power'. Except the first mark, others have been renewed from time to time. They are more than seven years old and are exclusive and valid. Recently, the Company has been taken over by Havell's group. Initially 60% of the Company's equity was purchased in April, 2000 and on 1.1.2002, the remaining 40% was taken over. Now the plaintiff is a part of Havell's group, which is extremely well known in the field of electrical equipments. Apart from the trade mark right in the word 'STANDARD', the plaintiff is also the owner of the copyright in the packaging of various products. The plaintiff is also the owner of the copyright in various logos/devices used by it and its products. The figure of sale of the plaintiffs products under the trade mark STANDARD have risen from 17.23 crores in 1992-93 to 39.47 crores in the year 2001-02. The products of the plaintiff are being sold in India and also in many other countries, as detailed in para-10 of the plaint. The plaintiff has been spending huge sums of money on advertisements and publicity. The plaintiff spent Rs. 3.7 crores in the last ten years on publicity and advertisements. The trade industry and the public identify the word STANDARD with the plaintiff and the plaintiff alone, especially in relation to electrical equipment, the plaintiff is so well known under the trade mark STANDARD that mere mention of the word STANDARD means the plaintiff. The word STANDARD though a dictionary word, due to prior adoption and continuous use and due to excellent quality products is now distinctive of the plaintiff and has acquired a secondary meaning to connote and denote goods originating from the plaintiff.

(3.) The defendant No. 1 is apparently the distributor of the products of defendant No. 2. Defendant No. 2 is a manufacturer of electrical switchgears, comprising of switch fuse units, changeover switches, direct on line starters, MCB boxes and distribution boards, R/F switches and rotary switches under the trade mark MS STANDARD. The plaintiff is the prior adopter and user of the trade mark STANDARD and the earliest trade mark user of the plaintiff is of 1961 though the trade mark was adopted in 1958. As against this, the user of the defendant is comparatively very recent. The plaintiff has found one price list which claims to be from 1.6.2002. The defendant, as such, was guilty of passing off an act of unfair competition. Therefore, it is not only infringing the common law and proprietary right in which the trade mark STANDARD was acquired by the plaintiff for a long use and any infringement of this trade mark by the defendant by later adoption of the trade mark MS STANDARD for manufacturing and sale of the similar products is likely to create confusion and deceive the consumer and the sub-standard goods of the defendant may tarnish the image and reputation of the plaintiff.