Passing Off of Trademarks
Passing Off of Trademarks
Passing off action is based on common law principle. The damages claimed
for in an action for passing off is “un-liquidated damages”. The action
against passing off is based on the principle that “a man may not sell his
own goods under the pretence that they are the goods of another man.”
Similar view has been held in ICC Development (International) Ltd. vs.
Arvee Enterprises that “the passing off action depends upon the simple
principle that nobody has any right to represent his good as the goods of
somebody else”. In a passing off action, the priority in adoption and use of
trade mark is superior. Passing off is not defined in the Trademark Act,
1999. It is referred to in Section 27 (2), 134 (1)(c) and 135 of the Act.
Section 27 (2) states that the rights of action against any person for passing
off as the goods of another person or the remedies in respect thereof are
unaffected by the provision of the Act. Section 134 (1) (c) refers to
jurisdiction of courts to try suits for passing off arising out of the use of any
trademark. Section one 135 specifies the remedies available in respect of
passing off arising from the use of a trademark.
The concept of passing off which is a form of tort has undergone changes in
the course of time. At first it was restricted to the representation of one’s
goods as those of another. Later, it was extended to business and services.
Subsequently, it was further extended to professions and non-trading
activities. Now a days, it is applied to many forms of unfair trading and
unfair competition where the activities of one person cause damage or injury
to the goodwill associated with the activities of another person or group of
persons.
The law of passing off applies whenever there is the prospect of confusion
between marks and getup or where there is the prospect of confusion of
identity through the unauthorised use of similar marks or get-up. It is
because the main consideration of passing off is whether deception or
confusion is likely to arise, passing off can be used to protect any kind of
distinctive name, mark, logo or get-up used to identify a company or
business as well as products or services.
The Hon’ble Supreme Court in Cadila Health Care Ltd. Vs. Cadila
Pharmaceuticals Ltd.19, held that the following factors to be considered in
case of an action for passing off action of an unregistered trademark for
deciding the question of deceptive similarity:-
1. The nature of the marks, i.e, whether the marks are word marks or label
marks or composite marks, i.e, both words or label works.
5. The class of purchasers who are likely to buy the goods bearing the marks
they are likely to exercise in purchasing and/or using the goods.
6. The mode of purchasing the goods or placing orders for the goods.
Infringement of a TradeMark
Section 27(1) of the Trademarks Act, 1999 provides that a person shall be
entitled to initiate legal proceeding to prevent or recover damages for the
infringement of a registered trademark. Infringement occurs when someone
else uses a trademark that is same as or deceptively similar to registered
trademark for the identical or similar goods or services as to cause confusion
in the mind of the public. This right of bringing an infringement action
against the defendant has been conferred by Section 28 of the Trademarks
Act, 1999. Section 28 of the Act provides that the registration of a
trademark gives to the proprietor of a registered trademark an exclusive
right to use the trademark in relation to the goods and services in respect of
which the trademark is registered and to obtain relief in respect of
infringement of the trademark.
3. The defendant has taken any essential feature of the mark or has taken
the whole of the mark and then made a few additions and alterations.
6. The use by the defendant is in such manner as to render the use of the
mark likely to be taken as being used as a trademark.
7. The defendant’s use of the mark is not by way of permitted user and
accordingly unauthorised infringing use.
While the above is the general proposition of law as per Section 29 (1), the
various circumstances in which the trademark is infringed are enumerated in
sub-sections 29(2) to (9) of Section 29.