"Failure to Establish Reputation or Goodwill": High Court's Stay Order Upheld in Intellectual Property Case

In a recent decision, the Supreme Court upheld the High Court's stay order in an intellectual property lawsuit involving accusations of passing-off and copyright infringement. The Court dismissed the appeal, stating that the appellant failed to sufficiently "establish its reputation or goodwill in connection with the goods in question."

 Highlights from the Judgement

Justice Abhay S. Oka and Justice Rajesh Bindal emphasized that merely producing sales figures and marketing expenses were not enough to establish goodwill or reputation. According to the judgment, "Prima facie, there is no evidence on this aspect." [Para 13]

 Unsuccessful Passing-Off Action

The High Court’s stay on the decree of the passing-off action was deemed justified, as the appellant failed to prove crucial elements, including the actual sales and expenditures related to advertising and promotion of the product. "Therefore, we find that the High Court was justified in staying that particular part of the decree of the Trial Court," the judgment reads. [Para 14]

 Acquiescence in Copyright Infringement

The Court also touched upon the issue of acquiescence as a valid defense in cases of copyright infringement. The appellant was found to have withdrawn their objections to the use of labels by the respondent without any conditional terms, constituting a "prima facie case of acquiescence." [Para 16]

 Concerns Over Conduct of the Bar

The judgment also highlighted the conduct of lawyers during trial proceedings, stating that if members of the Bar do not cooperate, "it will be very difficult for our Courts to deal with the huge arrears." [Para 19]

 No Future Influence on the Pending Appeal

The Supreme Court clarified that the High Court should not be influenced by the observations made in the present judgment or the impugned judgment when deciding the pending appeal. [Para 20]

This case serves as a vital precedent on how intellectual property claims need to be substantiated with concrete evidence, as well as the implications of the conduct of legal representatives in the courtroom.

Date of Decision: September 14, 2023

Brihan Karan Sugar Syndicate Private Limited  vs Yashwantrao Mohite Krushna Sahakari Sakhar Karkhana           

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