LAWS(DLH)-2005-10-70

DELL COMPUTER CORPN Vs. ARUN KUMAR

Decided On October 28, 2005
Dell Computer Corpn Appellant
V/S
ARUN KUMAR Respondents

JUDGEMENT

(1.) Plaintiff, an American company, established in Austin, Texas, USA in the year 1984, is dealing in computer hardware. Plaintiff company has diversified and expanded its activities which presently include but are not limited to computer hardware, software and peripherals. Besides, computer-related consulting, installation, maintenance, leasing warranty and technical support services. Earlier the plaintiff was called PC's limited but in the year 1987 plaintiff had adopted and commenced use of trademark DELL. According to the plaintiff, the trade mark has acquired tremendous and enviable goodwill and reputation. General public at large assumes that any computer or information technology related product or service bearing the word DELL is a product or service that originates from or is connected with the plaintiff company. The media has widely and extensively covered the plaintiff company and its success. The plaintiffs product have received recognition from leading computer magazines, which have consistently rated the plaintiffs products as being amongst the best in the world, in their respective categories. The plaintiff has become an icon and focus of the Information Technology industry. This media coverage has enhanced the instant recognition the plaintiff enjoys amongst consumers and the trade throughout the world as and for the goods and services originating from the plaintiff exclusively. In para 6 and 8 of the plaint, plaintiff has given its annual sales figures under the trade mark DELL from the year 1995 onwards and the amounts spent in advertising.

(2.) The plaintiff company started selling its products in India in late 1993 by shipping its products from the United States and thereafter from its Malaysian manufacturing plant. At first, the plaintiffs largest customer in India was its then distributor PCL, which in turn sold the plaintiffs products under the trademark DELL to end-users. In May 1996, the plaintiff set up a liaison office in India located at 4th Floor, Raheja Towers, M.G. Road, Bangalore. The liaison office in India was approved by the Reserve Bank of India by its letter dated 14th May, 1996 and the said approval was subsequently renewed on 16th July, 1999. The plaintiffs liaison office engages primarily in marketing and promotional activities such as working with DELL distributors and meeting with customers to reinforce the DELL brand name. The plaintiff has, in June 2000, also set up a company in India under the name Dell Computer Pvt. Ltd with Dell International Incorporated Ltd., USA as the foreign collaborator, with 100% equity participation amounting to US$ 2.5 million. This company, which is located in Bangalore, undertakes specialised after sales service, marketing and distribution of customized, high technology computer system and storage devices, computer consultancy and solutions, and software promotion. The plaintiff has previously provided these services under its trademark DELL through sub-contractors and distributors and in some cases directly through its non-Indian subsidiaries. The opening of the plaintiffs Indian subsidiary has expanded the plaintiffs presence even more, by allowing it to offer these services directly to customers from its location in India. The plaintiffs products are used by many leading software exporters and other organisation in India. The plaintiffs key customers in India include but are not limited to Infosys Technologies, Satyam, India Oil Corporation, Tata Consultancy Services, Mastek, Times of India, Aspect Development, Aditi Technologies, GE Capital, AP Pollution Control Board, NITT and Novell Software. The plaintiffs trademark DELL is a popular brand name in India and various magazines in India, such as DATAQUEST and PC World and newspapers have carried features and advertisements on the plaintiff company and its success story has been the focus of these features. The plaintiffs have also extensively advertised in the print media in India and is now well known in India.

(3.) The plaintiff has registered the trade mark DELL in the USA under registration numbers 1498470,1616571,1860272 and 2236785 in classes 9 and 40, and has registered or applied to register more than 30 additional members of its DELL family of marks in the USA. The plaintiffs trademark DELL is registered in more than 130 countries including Canada and Great Britain. Numerous other marks of which the word DELL is an integral part, are registered or pending registration in various countries of the world. The plaintiff has also applied for registration of its trademark DELL in India. The plaintiff has made the following applications for the registration of its trademark DELL and other additional DELL marks in class 9, the details of which are as follows: <FRM>JUDGEMENT_651_PTC31_2005_1.html</FRM>