RADICO KHAITAN LIMITED Vs. SAROJ BHATT & ORS

JUDGEMENT

(1.) This is an application under Order 39 rule 1 and 2 , seeking ad-interim injunction in the suit filed by the plaintiff for permanent injunction restraining infringing of trademark, passing off, dilution of trademark, damages, rendition of accounts of profits, delivery up etc. The plaintiff which is a public limited company was formerly known as 'The Rampur Distillery and Chemical Company Limited' which was changed to the present name in the year 1992. The plaintiff claims that it is proprietor of the corporate name/trading style/trade mark/house mark RADICO. The RADICO is a coined word that has been abbreviated from the Rampur DIstillery and Chemical COmpany. After coining this word, it was decided by the Board of Directors to change the name of the company and on completion of formalities this change was by approved by the Registrar of Companies. It is also the case of the company that following the change of the name of the plaintiff, the coined word RADICO has always been an integral part of the plaintiff's business. Apart from being an essential and dominant part of its corporate name, the name RADICO has been used as the trademark in respect of entire range of goods of the plaintiff including the surrogate goods like drinking water, juices and gift items like glasses, key-chains, caps, T-shirts given out by the plaintiff time to time. This trademark RADICO is also used for various products of the plaintiff like RADICO'S OLD ADMIRAL VSOP BRANDY, RADICO GOLD SUPREME WHISKY, RADICO GOLD SPECIAL WHISKY, RADICO GOLD SPECIAL BEER, RADICO'S U.P. NO. 1, RADICO'S UP SEPECIAL. 8PM, SPECIAL APPOINTMENT, CONTESSA RUM that constitute the RADICO family to trademarks. It is further stated that being a coined word with no obvious meaning makes the word RADICO akin to an invented trademark, as it does not even connote a surname, personal name, dictionary word or a geographical name to anyone in India or abroad. Therefore, the invented trademark RADICO is absolutely and inherently distinctive and entitled to the highest degree of protection. The plaintiff claims that it has achieved tremendous success in Indian market for the last six decades when the company was initially incorporated and since the establishment Rampur Distillery and Chemical Company Limited in the year 1943 with innovation and packaging, a nationwide distribution network that covers 90% retail points, clubs and bars in the country backed by effective advertising, popular events and promotions, marketing savvy skills and market understanding from a 150 strong team of young professionals reaching all regions with 210 distribution points in the country, 4 zonal offices and 6 regional offices across the country carry the plaintiff's products to every corner of the country. The plaintiff is the third largest liquor producer in the country and apart from owning the Rampur Distillery has 23 contract bottling units spread all over the country. To keep pace with the growing demand, the company has significantly increased its bottling capacity by acquiring/installing bottling plants in Rajasthan, Uttaranchal and Andhra Pradesh, apart from entering into tie-up agreements in different strategic locations of the country like Punjab, Maharashtra, Tamil Nadu, Kerala, Madhya Pradesh, Karnataka with bottling units.

(2.) The plaintiff states that its Ram Distillery is one of the leading manufacturers of rectified spirit and extra neutral alcohol (ENA) with an annual production of 60 million litres and a capacity utilization of over 100 per cent. It is the first Indian distillery to gain the ISO 9001:2000 certification that it continues to hold and was awarded the Distillery of the Year Award in the year 1992 on the basis of its performance in quality and capacity utilization, by selected group of India's leading economists. It has 14 state-of-the-art bottling lines including the ones imported from Italy equipped with tunnel bottle washing, filling, sealing and labeling machines with a capacity to produce 1500 cases of liquor in a single shift of operation and each case consisting of 12 bottles of 75-ml. Line capacities vary from 750 cases to 3000 cases in a shift.

(3.) The plaintiff also boasts that most of its products are flagship brands under the house mark RADICO like Contessa Rum Old Admiral VSOP Brandy, 8PM Whisky. Recent acquisitions like BLACK CAT RUM from Sikkim Distilleries and WHITEFIELD WHISKY AND WHITEFIELD BRANDY from Nirayu Distilleries have strengthened the plaintiff's portfolio of renowned brands. The plaintiff has also acquired the joint venture company, Whytehall India Limited wherein the foreign partner Bacardi International was holding 51% equity. Globally, it has entered into collaboration to bring the best international wines and spirits to the palate of the discerning Indian consumers. The reputation of its products can be seen by the averments that its sales turnover which was Rs. 71.84 crores in the year 1991-92 has been increasingly progressively with the passing of each year and the same has reached phenomenal to Rs. 995.13 crores in the year 2004-05. At the same time advertising expenses to promote the products under the trademark RADICO have increased from Rs. 3.16 crores in the year 1998 to Rs. 39.24 crores in the year 2004-05. The sales promotion activities are multi faceted including, inter alia, TV commercials, outdoor hoarding at strategic locations, retail signages, retail point of sales material, print campaigns, on premise signages, consumer offers. The plaintiff has engaged the much acclaimed international model and film actor Ms. Katrina Kaif as its brand ambassador. In film brand placement and TV contests is another method by way of which the plaintiff has ensured that various brands under the house mark RADICO have come about to be recognized as household names in India. RADICO'S 8PM was one such brand that has been associated with big budget films like Sanjay Dutt starrer "Plan" and Sunney Deol starrer "Ma Tujhe Salaam". As an industry practice, the plaintiff has also from time to time released various surrogate products for the promotion of various brands under the house mark RADICO. The plaintiff released a remix album for the brand 8PM BERMUDA RUM in association with Times Music with the music video of the remix version of the song "Mausam Mastana" being aired on all the music television channels and FM channels. It is also claimed that the plaintiff, as part of its social responsibility, has teamed up with various cultural institutions has organized various programmes.