The court awarded Rs 16 lakh damages to Cadbury for trademark infringement: Delhi HC

07 May 2024 8:19 AM

By: Admin

D.D:26-07-2022

The Delhi High Court has ordered an Indian company named Neeraj Food Products to pay nearly 16 lakh to the British confectionery company Cadbury for infringing its 'Cadbury Gems' trademark.

Justice Prathiba M. Singh remarked that almost everyone associates Cadbury Gems with their childhood and that its brand is well-known among both children and adults.

The court ruled that Cadbury's packaging is distinctive and that the company is the registered owner of the trademark 'Cadbury Gems' and the artistic character known as 'Gems Bond'

The judge added that there is no doubt that the defendant has violated Cadbury's rights.

"...chocolates are sold not only in large retail stores or outlets, but also in roadside shacks, paan shops, patri vendors, kirana stores, and stands in front of schools, etc. Therefore, there is a high likelihood of consumer confusion, especially considering that the product is marketed to children, as stated in the order.

Cadbury (now known as Mondelez India Foods Pvt Ltd) filed a trademark infringement suit against Neeraj Food Products in 2005, seeking a permanent injunction and damages.

On its product packaging, the defendant was allegedly using the trademarks "James Bond" and "Jamey Bond" with an image of chocolate buttons on the same colour background. The court was informed that the marks are confusingly and deceptively similar to Cadbury's.

In spite of the fact that the defendant had initially entered appearance, the suit later proceeded ex-parte, and the defendant did not file any documents to support their case, with the exception of a few raw invoices from 2001 and 2002.

The High Court determined that the Gems product is typically consumed by children and that the test in this instance is not absolute confusion.

Justice Singh stated that a comparison between the defendant's infringing product and the packaging of Cadbury's product leaves no doubt that the former is an exact copy of Gems.

"It is significant that these products are sold not only in larger packs, but also in smaller pillow packs, so the mark may not even be completely visible. Even the smallest selling unit of the Defendants' product, the pillow pack, can be purchased for between 1 and 5 rupees. Therefore, the product's appearance, layout, and colour combination play a significant role at the point of sale," the order states.

Justice Singh determined that not only did the defendant infringe on the plaintiff's trademark, but it also constituted passing off, and therefore the plaintiff is entitled to damages.

The court ordered Neeraj Food Products to pay Cadbury the actual amount of 15.86 lakh within three months.

Attorney Prakriti Vaishney represented Cadbury.

MONDELEZ INDIA FOODS PVT. LTD. AND ANR

Versus

NEERAJ FOOD PRODUCTS