LOUIS VUITTON Vs. GAURAV BHATIA

JUDGEMENT

(1.) The present suit has been filed by the plaintiff seeking permanent injunction against the defendants, restraining them from infringing its trademark, copyright and also from passing off the goods of the plaintiff as that of theirs and for rendition of accounts and damages.

(2.) The case of the plaintiff in brief is that it is registered company existing under the laws of France and having its registered office at 2, rues du Pont-Neuf, 75001-Paris, France. Col. J.K. Sharma (Retired) is the authorised person representing the plaintiff under a Power of Attorney. It is submitted that the plaintiff-company was founded by Mr Louis Vuitton and that it has a reputation of producing lifestyle goods having a distinctive design and exclusive craftsmanship which looks elegant and high style. They are specialised in the production and distribution of higher quality of luggage, hand bags, travel and fashion accessories for men and women, including ready to wear, shoes and jewellery. They maintain strict quality, control and have exclusive retail network. Their distribution is through a limited network of more than 460 exclusive stores located in selected cities upon the work. They only sell their products through these exclusive stores and outlets and their goods are available only at retain prices fixed by the plaintiff. The plaintiff opened its first exclusive store in India in 2003 at Oberoi Hotel in New Delhi and now they have stores one each in New Delhi, Bangalore and Chennai and two in Mumbai. These are the only 5 places where they sell their products. The plaintiffs spent a huge sum in advertisement of their products in India and their product has widespread recognition in India. Their net sale in India during the period 2007-2010 was approximately Rs. 213 crores. Their brand name LOUIS VUITTON was ranked No.17 by survey conducted in Interbrand in 2012 and is considered top fashion design. It is also a trademark and its initial in an intertwined manner is also a trademark since 1854 which appears on number of its products and is a signature symbol of the plaintiff. It also uses a canvas design with a flower pattern and intertwined initials of Louis Vuitton (LV) and this pattern is emblematic symbol of the plaintiff. The design is known as "Toile Monogram" and it is a registered trademark of the plaintiff. It introduced 33 different colours called the "Murakami Monogram Multicolour as variation to "Toile Monogram" and enjoys copyright over the said pattern which is an artistic work and is registered under No. VAI-250-120 with the Copyright Office of the United States of America. Its registration numbers in India in classes 3,14, 18 and 25 are 441451, 448229, 441452, 448230, 448231, 441453, 448233, 448235, 448234 and 861145.

(3.) It is submitted that defendants 1, 2 and 3 are Directors of defendant No.4 which is a trading company and operates trading under the name of Digaaz e-commerce Pvt. Ltd. which operates an e-commerce website www.digaaz.com on which it offers for sale lifestyle and fashion products. It is found that the defendant is offering for sale and supplying counterfeit products bearing several registered trademarks of the plaintiff on this website. The domain name www.digaaz.com is registered in the name of defendant No.2 and, therefore, it is directly under its control. It is submitted that the plaintiffs came to know on 205.2013 of the infringement of its trademark by the defendants and also they discovered that the defendants were indulging into counterfeit activities and supplying counterfeit goods of plaintiff. The plaintiff found that the Registrar of the domain name www.digaaz.com was NAME.COM, INC., located at 2500, East Second Avenue, Second Floor, Denver, Colorado 80206, USA and the Internet Service Provider (ISP) hosting the infringing website parked on the said domain name was Pioneer Elabs Limited, located at Plot No. 16, APIIC. Software Units Layout, Madhapur, Hyderabad 500 081. The plaintiff thereafter notified the said ISP by electronic mail dated 25.07.2013 the fact that the website www.digaaz.com was offering for sale and supplying counterfeit products of the plaintiff against online orders and requested them to remove the said website. It also sent a reminder on 06.08.201 The said ISP, however, has not replied the notices of the plaintiff. The plaintiff learnt that the defendant has changed the ISP in Oct., 2013 and now another ISP, Limestone Networks, located in Dallas, TX 75202, USA is hosting the defendant's website. The change of the ISP by defendant is an indication of the mala fide intention of the defendant to continue infringing the trademark of the plaintiff negatively by indulging into counterfeiting activities. It is also submitted that the act of the defendant offering the counterfeit products of the plaintiff which are identical to the product of the plaintiff amounts to infringement of its trademark. It is further submitted that the defendants were representing to the public on their website that the goods they are supplying were 100% authentic while at the same time they are supplying counterfeit products. The defendants are pricing the goods between Rs.12,000.00 to 59,000.00 and are also offering discounts up to 80%. The supply by the defendant of the counterfeit products of the plaintiff bound to affect the goodwill of the plaintiff negatively and is bound to cause immense and irreparable harm in reputation. The act of the defendant is also causing loss of its business and he is also playing with the trust of the people which they have in the products of the plaintiff. It is submitted that this Court has the jurisdiction to entertain the present suit as the defendant's website is active in Delhi as well and it is also targeting Delhi's customers and selling articles in Delhi as well. It is further submitted that this Court has the jurisdiction under Sec. 134(2) of the Trade Marks Act as well since the plaintiff is a registered trademark and it is carrying on its business in Delhi through its exclusive boutique at the Emporio Mall, DLF Emporio,Vasant Kunj. On these facts, it is prayed that the defendants, their partners, officers, servants, agents, distributors, stockists and representatives be restrained from manufacturing, selling and offering for sale, advertising, directly or indirectly dealing in wallets, handbags, suitcases, luggage, purses, belts, footwear, jewellery or any other goods bearing the trademark "Louis Vuitton" or logo or the "Toile Monogram" pattern. It is also prayed that the domain name of the defendant be suspended and ISP hosting the impugned website of the defendant be directed to remove the said website. It is also prayed that the defendant be directed to render the accounts of the profit earned by them while indulging into the activities and supplying counterfeit products.