VELCRO INDUSTRIES B V Vs. VELCRO INDIA LTD

JUDGEMENT

(1.) This Notice of Motion for injunction is filed by Plaintiffs to restrain Defendants inter alia from (a) infringing Plain- tiffs trade mark "Velcro" (b) passing of Defendants' hook Velvet fabric of synthetic material or fastners of Defendants as hook Velvet fabric of Plaintiffs and (c) using the word "Velcro" or any other name deceptively similar thereto as part of Defendants trading name and style.

(2.) Admitted facts are that Plaintiffs are the owners of Trade Mark set out in paragraph 4 of the Plaint for the classes set out therein. It is also an admitted position that in 1968 negotiations started between Plaintiffs and Defendants Indian Directors for purposes of entering into a collaboration Agreement. It is clear that it is because of those negotiations that Defendants Company was incorporated on 6.10.1969 with the name "Velcro" as part of its Corporate name. This is also clear from fact that thereafter on 26.11.1969 a Shareholders Agreement, as well as, a Licence Agreement were entered into. The Licence Agreement Exh. 'C' specifically provides that on termination of the Agreement Defendants are not to use the word "Velcro" as part of their trade name. Before expiry of this Agreement on 26.11.1981 a second Licence Agreement dated 12.11.1981 (Exhibit 'E) was entered into. This was operative upto 30.9.1986. Thus till this date Defendants have only acted as Licensees of Plaintiffs so far as manufacture and use of hook velvet fastners of synthetic material is concerned.

(3.) Thereafter negotiations have taken place but these have not fructified in any further agreement. Plaintiffs have been calling upon the Defendants to stop infringing the Plaintiffs mark and to stop passing of their goods as those of Plaintiffs. Plaintiffs have also called upon the Defendants to stop using the name "Velcro" as part of Defendants Corporate name. Plaintiffs have not earlier moved because of pending negotiations. There is thus no delay or latches on the part of plaintiffs.