MIDAS HYGIENE INDUSTRIES PVT. LTD. Vs. SUDHIR BHATIA

JUDGEMENT

(1.) These appeals, under Sec. 72 of the Copyright Act, 1957, challenge the order of the Learned Copyright Board (hereinafter "the Board) dated 04.04.2011, which expunged registration numbers A -51334/91, A -55885/99, and A -55885/99 upon the petition filed on 23.01.07 by the respondent/Applicant, Sudhir Bhatia (hereinafter, "the respondent"). The ground in support of the appeal is that inter alia, the Board mis -applied Sec. 15(2) of the Copyright Act, 1957 in the facts and circumstances of the case. The appellants (hereafter called "Midas") claim to be pioneers in insecticides and pesticide production in the form of chalks in India. After conceiving the idea and testing it, Midas launched commercial activity under the trademarks "Krazy Lines" and "Laxman Rekha" (hereafter "the trademarks") approximately in 1989. The trademarks were registered, bearing Nos. 545608 and 54610 respectively in 1991, and the packaging material of the products was registered under No. A -51334/91 of the Copyright Act.

(2.) The respondent was employed by the appellants from 1985 as he was a close relative of a director, Mr. S.S. Kapoor. In 1992, he started production of identical chalks under the trademarks "Krazy Lines" and "Laxman Rekha", pursuant to which a legal notice was served upon him on 28.02.1992, which was replied to by him. When such production activity continued in 1994, criminal proceedings were initiated against the respondent. Later that year, upon the insistence of family members, an agreement was signed between the opposing parties, which, inter alia, stipulated the abandonment of the trademarks "Krazy Lines" and "Laxman Rekha" by both the appellant and the respondent, after 30.06.1994.

(3.) The agreement, however, was breached, in the first instance, by the respondent, after which the appellant also found it expedient in their business' interests to flout its terms and continue production of the insecticide and pesticide chalks. Thereafter, Midas filed Suit No. 1821/1999 against the respondent before this Court. The matter, after being heard by a Single Judge and later, a Division Bench the Court, was eventually decided by the Supreme Court of India on 22.01.2004, restraining the respondent from using the said trademarks, during pendency of the suit on the file of this Court. The Supreme Court held that the cartons used by the respondent was "almost identical" to that of the appellant. The Court held that the respondent was unable to explain why such a mark was used and that this indicated a prima facie dishonest intention.