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[Cites 3, Cited by 0]

Delhi High Court

New Balance Athletics, Inc. vs Apex Shoe Company Pvt. Ltd. on 23 January, 2019

Equivalent citations: AIRONLINE 2019 DEL 2340

Author: Rajiv Sahai Endlaw

Bench: Rajiv Sahai Endlaw

*      IN THE HIGH COURT OF DELHI AT NEW DELHI

%                                         Date of decision: 23rd January, 2019
+      CS(COMM) 850/2018 & IAs No.6402/2018 (u/O XXXIX R-1&2
       CPC) & 16184/2018 (for condonation of 68 days delay in filing
       replication)

    NEW BALANCE ATHLETICS, INC.                      ..... Plaintiff
                  Through: Mr. Aditya Goyal, Adv.
                          Versus
    APEX SHOE COMPANY PVT. LTD.              ..... Defendant
                  Through: Mr.     Abhishek     Malhotra,       Mr.
                            Himanshu Deora & Mr. Shashwat
                            Rakshit, Advs.
CORAM:
HON'BLE MR. JUSTICE RAJIV SAHAI ENDLAW

1.     The application of the plaintiff for interim injunction in this suit for
permanent injunction restraining infringement of trade mark, passing off and
for ancillary reliefs is for consideration.

2.     The counsel for the parties were heard on 22nd November, 2018 when
after hearing, personal presence of Mr. Simarpreet Singh, Director of the
defendant was directed. Mr. Simarpreet Singh, Director of the defendant
appeared before this Court yesterday and his statement was recorded; the
counsels were further heard and on request of the counsel for the defendant,
the hearing adjourned to today. The counsel for the defendant has been
further heard today.

3.     The plaintiff instituted this suit, pleading (i) to be a company existing
under the laws of USA; (ii) to be engaged in the manufacturing, marketing
and sale of all types of footwear, readymade apparel including footwear and

CS(COMM) No.850/2018                                              Page 1 of 18
 apparel in the field of sportswear under the trade marks „NEW BALANCE‟;
(iii) that the trade mark „NEW BALANCE‟ was adopted by the plaintiff‟s
predecessor in title in the year 1906 and thereafter has been in continuous
use in USA and around the world; (iv) that „NEW BALANCE‟ constitutes
not only the mark of the plaintiff but also constitutes an important and
essential feature of the trading name of the plaintiff; (v) that the plaintiff has
six manufacturing facilities in USA and wholly owned subsidiaries in U.K.,
Hong Kong, Singapore, Australia, New Zealand, Mexico, Canada and South
Africa; (vi) that the plaintiff is the registered proprietor of the mark „NEW
BALANCE‟ in India since 2nd February, 1990 in Class 18, in respect of bags
such as backpacks and tote bags for carrying sporting articles and since 18th
May, 1987 in Class 25, in respect of articles of athletic and sports, footwear
and clothing; both the said registrations are subsisting; (vii) that the plaintiff
sells its goods under the mark „NEW BALANCE‟ in more than 120
countries including India through specialty retailers, departmental stores etc.;
(viii) that the plaintiff also sells its goods online and the goods of the
plaintiff are offered for sale in India on Newbalance.co.in, Amazon.in,
Jabong.in, Myntra.in, Flipkart.in, Snapdeal.in and Liveyoursport.in; (ix) that
the plaintiff is also the owner of domain names comprising of „NEW
BALANCE‟ in different countries; (x) that "the plaintiff has been using the
trade mark „NEW BALANCE‟ in respect of its various goods and services in
India since at least as early as 1986; however, it is only in the year 2016, that
the plaintiff appointed a full time distributor in India; prior to 2016, the sales
in India were sporadic in nature"; (xi) that plaintiff‟s trade mark „NEW
BALANCE‟ has been endorsed by leading sportsmen as well as reputed
teams / national teams in various sports; (xii) that the plaintiff, sometime in
CS(COMM) No.850/2018                                                Page 2 of 18
 March, 2017 came to know that the defendant had filed a trade mark
application for the mark „NEW BALANCE‟ in respect of footwear; and,
(xiii) that the plaintiff served a cease and desist notice dated 17 th March,
2017 to the defendant and to which the defendant replied on 18th April, 2017;
a meeting was arranged of the parties and in which meeting, the defendant
conveyed that it was willing to comply with the demand of the plaintiff
provided a monetary consideration was given to the defendant and which
demand of the defendant was rejected by the plaintiff.

4.     The suit was entertained, though no ex parte injunction sought
granted.

5.     The defendant, in its written statement has pleaded that (a) the
defendant has been in the footwear industry since early 1970s and the goods
sold by the defendant are available throughout India and are well known; (b)
the defendant has adopted various trade marks and of which „NEW
BALANCE‟ is one; (c) the defendant has used the mark „NEW BALANCE‟
since the year 1999 in conjunction with its house mark „APEX‟, resulting in
enormous goodwill and reputation and also acquired distinctiveness in
favour of the defendant; (d) the defendant has superior rights over the mark
„NEW BALANCE‟ in India; (e) the defendant filed application for
registration of „NEW BALANCE‟ on 13th April, 2000, claiming use since
1999; (f) the plaintiff has no user of the subject trade mark in relation to the
subject goods; (g) the registration in Class 18 cited by the plaintiff is in the
name of „New Balance Licensing Inc.‟ and the plaint does not disclose the
relationship between the plaintiff and „New Balance Licensing Inc.‟; (h) the
plaintiff has not filed any evidence of claimed use since 1986 and on the

CS(COMM) No.850/2018                                              Page 3 of 18
 contrary has admitted its sales prior to 2016 being „sporadic‟; (i) the
defendant honestly adopted the mark „NEW BALANCE‟ in the year 1999;
(j) there is no likelihood of confusion owing to the difference in price, trade
channels, class of consumers, target market, manufacturing material / nature
of goods and character and performance of goods of the parties; (k) the suit
is highly belated, the defendant having commenced use of the mark in 1999
and there is no explanation for the delay; (l) even after coming to know in
March, 2017 of the defendant, the present suit has been filed only in March,
2018; the plaintiff has thereby acquiesced in use of the mark by the
defendant; and, (k) there is no document filed by the plaintiff of use of the
mark in India since 1999.

6.     The plaintiff, in its replication, with respect to „New Balance
Licensing Inc.‟ has pleaded that the present suit is based on registration dated
18th May, 1987 in Class 25 in the name of the plaintiff and the counsel for
the plaintiff explains that the application of the plaintiff for rectification of
the registration dated 2nd March, 1990 in Clause 18 in the name of „New
Balance Licensing Inc.‟ to the name of the plaintiff is pending.

7.     The counsel for the defendant at this stage states that the replication
has not been taken on record as yet.

8.     It was the contention of the counsel for the plaintiff on 22 nd
November, 2018, that (i) the plaintiff learnt of the rights claimed by the
defendant in the trade mark „NEW BALANCE‟ of the plaintiff, from the
application filed by the defendant for registration of the said mark; (ii)
otherwise, the plaintiff has not found any sales by the defendant under the
said mark, though in the application for registration as well as in the reply to

CS(COMM) No.850/2018                                               Page 4 of 18
 the notice preceding the suit, the defendant claimed so; (iii) the defendant
has filed documents in proof of sale, at pages 26 to 40 of their documents,
but the same also do not indicate as to what product is being sold thereunder;
(iv) the defendant has also not pleaded their sales figures; and, (v) the
defendant, from pages 41 to 153 has filed its brochure but not a single
product bears the trade mark „NEW BALANCE‟. It was on the aforesaid
contention that the personal presence of Mr. Simarpreet Singh, Director of
the defendant before this Court was directed.

9.     Mr. Simarpreet Singh, Director of the defendant in his statement
recorded yesterday has stated that the mark „APEX NEW BALANCE‟ is
reflected in the brochure filed by the defendants before this Court and has
pointed out the pages of the said brochure. He has also stated that the mark
„APEX NEW BALANCE‟ is embossed on the shoes under the said mark
though not visible in the photographs thereof filed before this Court. It has
further been clarified by Mr. Simarpreet Singh that all goods are sold in the
name of „APEX NEW BALANCE‟ and not under the mark „NEW
BALANCE‟ alone, i.e. without the word „APEX‟ and that the sales of
„APEX NEW BALANCE‟ are not recorded separately.

10.    The counsel for the plaintiff has argued that, (i) the defendant, who is
in the same trade as the plaintiff, is to be presumed to have known of the
market of the plaintiff in relation to the same shoes; (ii) the defendant
intentionally squatted over the mark of the plaintiff, with a view to extort
money from the plaintiff; (iii) in N.R. Dongre Vs. Whirlpool Corporation
(1996) 5 SCC 714, the damage to the mark by the defendant on account of
poor technology and low pricing was taken into consideration while granting

CS(COMM) No.850/2018                                             Page 5 of 18
 the interim injunction; (iv) in para no.6 of Milmet Oftho Industries Vs.
Allergan Inc. (2004) 12 SCC 624, N.R. Dongre supra was analysed; and, (v)
all the registered trade marks of the defendant are with the prefix „APEX‟
and the defendant has no registration of „NEW BALANCE‟; even „NEW
BALANCE‟ is being used by the defendant in conjunction with „APEX‟.

11.    Per contra, the counsel for the defendant has argued that, (a) the
plaintiff, while applying for registration, applied on „proposed to be used‟
basis; on the contrary the defendants in their application claimed use since
1999; (b) the registration of the plaintiff under Class 18 is with the
disclaimer with respect to the word „NEW‟; the plaintiff thus cannot claim
any right to the exclusive use of the word „NEW‟; (c) it is falsely stated that
the defendant intended to squat on the mark to extort monies; the question of
payment came up during the discussions held between the parties and it was
in the said context that the defendant had sent the communication to which
reference is made by the plaintiff; (d) the adoption by the defendant is honest
and owing to the technology adopted by the defendant of, the shoes of the
defendant having a unique balance which does not exist in the other shoes
available in the market and which imparts comfort; (e) there is no possibility
of any confusion / deception inasmuch as the market segment of the shoes of
the plaintiff and the defendant is different; the shoes of the defendant under
the mark „NEW BALANCE‟ are priced under Rs.1,000/-; (f) the annual sale
of the shoes under the mark „NEW BALANCE‟ is over 32 lacs pairs of
shoes; (g) while the shoes of the defendant are meant for farmers; the shoes
of the plaintiff qualify as sportswear; (h) the plaintiff itself in the plaint has
admitted its sales in India to be sporadic prior to the year 2016; (i) the
plaintiff has not produced a single document to prove sale and use of the
CS(COMM) No.850/2018                                                Page 6 of 18
 mark in India before 2016; (j) the registration of the mark of the plaintiff is
not a word mark registration but a device mark registration; (k) the plaintiff,
after the knowledge of the use by the defendant also, has instituted this suit
after considerable delay and thereby acquiesced in use of the mark by the
defendant; (l) trafficking in trade marks is prohibited and it is the plaintiff
who obtained registration of the mark in India without any intent of use
thereof, as is obvious from non use thereof till 2016; (m) attention is drawn
to Section 47 of the Trade Marks Act, 1999 providing for removal of the
mark from Register for non use for five years; (n) the registration in favour
of the plaintiff is not of a „word mark‟ but of a „device‟ and the parameters,
as of a „word mark‟, will not apply; (o) in N.R. Dongre supra, there were
documents on record and admission of use of the mark by Whirlpool
Corporation in India and it was in the said context that injunction was
granted; (p) Milmet Oftho Industries supra relied upon by the counsel for
the plaintiff is in relation to pharmaceutical products and interim injunction
therein was granted in the context of public harm and the doctors in India
also keeping abreast of the developments in the field worldwide; (q)
attention is drawn to Columbia Sportswear Company Vs. Harish Footwear
2017 (70) PTC 489 where a Co-ordinate Bench vacated the injunction
reasoning that though the mark of the plaintiff therein may be well known in
foreign country but the presence of the plaintiff in India had not been shown
from any of the documents filed by the plaintiff and the percentage of
customers of the plaintiff remained a mystery; and, (r) reliance is placed on
Toyota Jidosha Kabushiki Kaisha Vs. Prius Auto Industries Ltd. 2018 (2)
SCC 1 containing reference to Professor Critopher Wadlow‟s book "The
Law of Passing Off", 5th Edition, Sweet & Maxwell, opining that bona fide
CS(COMM) No.850/2018                                             Page 7 of 18
 domestic traders should not be open to litigation at the suit of unknown or
barely known claimants from almost anywhere in the world.

12.    I have considered the rival contentions.

13.    Having weighed the rival contentions on the anvil of the ingredients of
prima facie case, irreparable injury, balance of convenience and public
interest, I find the plaintiff entitled to the interim injunction sought. My
reasons are stated herein below:

       A.      It is undisputed that as of today, the plaintiff is the registered
               proprietor vide registration dated 18th May, 1987 in Class 25
               (articles of athletic and sports, footwear and clothing, such as
               hats, sweat bands, visors, sport shirts singlets, T-shirts, running
               shorts, running suits, all weather suits, recreational tops and
               shorts, aerobic exercise wear, socks athletic shoes, walking
               shoes, aerobic dancing shoes and hiking boots) of "Trade Mark
               Type: Device" and "Word Mark: New Balance" as under:




       B.      Though the aforesaid registration describes the type of the trade
               mark as „device‟ but also describes the registration as of the
               word mark „NEW BALANCE‟. The registration is thus of a
               composite mark. The argument of the counsel for the defendant,
               that the registration is not of word mark, does not find favour
               because even if registration is considered as that of a device, the
               device is nothing but of a rectangle with the words „NEW
CS(COMM) No.850/2018                                                Page 8 of 18
                BALANCE‟ in capital letters on it, without any other frills.
               Such a registration, though may be classified as of a device but
               conveys only the word mark and there is nothing else in the
               device by which the consumers can identify the same dehors the
               word mark. The consumers are unlikely to distinguish between
               the words „NEW BALANCE‟ placed in a rectangle and the
               same words without the lines of the rectangle around them. The
               contention of the counsel for the defendant that the plaintiff
               cannot claim benefit of the said registration to restrain the
               defendant from using the word mark „NEW BALANCE‟ owing
               to being of a device mark, thus cannot be accepted. Reference
               in this regard may be made to Amir Chand Om Prakash Vs.
               Rajni Industries 2011 (124) DRJ 743 holding that the
               prominent part of even the device mark, cannot be used by the
               defendant. Here, as aforesaid, the device mark is nothing but the
               words „NEW BALANCE‟ which have been used by the
               defendant. Though in S.M. Dyechem Ltd. Vs. Cadbury (India)
               Ltd. (2000) 5 SCC 573 it was held qua comparison of device
               mark and word mark that where common marks are included in
               the rival trade marks, more regard is to be paid to the parts not
               common but subsequently in Cadila Health Care Ltd. Vs.
               Cadila Pharmaceuticals Ltd. (2001) 5 SCC 73, the same was
               disagreed with and it was held that the test is of similarity and
               not dissimilarity.

       C.      The contention of the counsel for the defendant that the
               aforesaid registration is of no avail, being on a proposed to be
CS(COMM) No.850/2018                                              Page 9 of 18
                used basis, does not also disentitle the plaintiff from the interim
               injunction. It is not the case that the defendant or any other
               person, on account of non-user of the mark by the plaintiff, at
               any time, till the institution of the suit, took any steps for having
               the mark of the plaintiff removed from the register. It is not
               open to the defendant to today, when faced with the prospect of
               being restrained, raise the said pleas.           I have in Sun
               Pharmaceuticals Industries Limited Vs. Cipla Limited 2009
               (39) PTC 347 and H&M Hennes & Mauritz AB Vs. HM
               Megabrands Pvt. Ltd. (2018) 251 DLT 651 held that a
               defendant in a suit for infringement cannot set up pleas of non-
               use without seeking remedies before the Registrar of
               Trademarks under Section 47 of the Trade Marks Act, 1999 as
               the same, if permitted would undermine the efficacy of
               registration and the presumption of validity of registration under
               Section 31 of the Trade Marks Act and therefore an action for
               infringement of trade mark cannot be defeated for disuse.

       D.      It is also not in dispute that at least as of today and since 2016,
               the plaintiff has a full time distributor in India. Thus, again as
               of today, both the plaintiff and the defendant are in use of the
               mark with the mark of the plaintiff being registered and that of
               the defendant not being registered.

       E.      The use by the defendant of the mark „NEW BALANCE‟ in
               conjunction with „APEX‟ is incapable of distinguishing the
               goods of the defendant from that of the plaintiff. In Jain

CS(COMM) No.850/2018                                                  Page 10 of 18
                Riceland Pvt. Ltd. Vs. Sagar Overseas 2017 (72) PTC 523
               (Del) it was held that the addition of the brand name is not
               sufficient. Moreover, the arrangements between foreign and
               Indian parties, whereunder a foreign party allows an Indian
               party to use its mark for goods manufactured in India, are not
               unknown. The possibility of the consumers, notwithstanding the
               plaintiff having not permitted the defendant to sell the goods
               under the brand / mark „NEW BALANCE‟ of the plaintiff,
               assuming so, cannot be ruled out. This Court in Piruz
               Khambatta Vs. Soex India Pvt. Ltd. (2012) 193 DLT 670 and
               the High Court of Bombay in Hem Corporation Pvt. Ltd. Vs.
               ITC Limited 2012 SCC OnLine Bom 551 held that use of mark
               as a sub mark amounts to infringement and that sub-brand is a
               brand/mark.

       F.      It is also not in dispute that at least internationally, the user of
               the mark by the plaintiff is of at least a century before that of the
               defendant. The only question is, whether use in India by the
               defendant of the mark on a bigger scale than the use by the
               plaintiff, should disentitle the plaintiff from an interim
               injunction.

       G.      In my view considering the nature of the product, with respect
               to which the plaintiff as well as the defendant are using the
               mark, and considering the targeted consumers thereof, a more
               extensive use in India by the defendant of the mark even if any,
               does not disentitle the plaintiff from interim injunction. The

CS(COMM) No.850/2018                                                 Page 11 of 18
                product of the plaintiff, with admittedly no distributor in India,
               prior to the year 2016, could be procured by consumers in India
               only through the online platforms through which the plaintiff
               claims to have effected sales in India or on travel abroad. A
               browsing of some such platforms qua shoes shows a huge
               disparity in prices of shoes, with sports / walking / hiking shoes
               being available for at least one tenth of the price of their
               branded counterparts.     Besides the perceived differences in
               quality and comfort, what drives the purchasers of branded
               products, as the product of the plaintiff is, to dish out ten times
               or more the price for which other shoes are available, is the
               brand value and brand consciousness, which plays a large part
               in the purchase of branded products. In fact, All India Footwear
               Manufacturers & Retailers Association, a consortium of
               retailers of shoes, had initiated legal proceedings [W.P.(C)
               No.7479/2015] in this Court to restrain sale of shoes through
               online platforms, enabling the sellers thereof to sell the same at
               a fraction of a price. A large part of the revenue of the plaintiff
               goes into building the value of its brand „NEW BALANCE‟.

       H.      On the contrary, the defendant does not claim any brand value
               of its mark „NEW BALANCE‟, though claims brand value of
               its mark „APEX‟ under umbrella of which all shoes of the
               defendant including under the mark „NEW BALANCE‟ are
               sold.



CS(COMM) No.850/2018                                                Page 12 of 18
        I.      It is thus a mark having brand value which is pitted against a
               mark having no brand value and on building of value whereof
               the defendant has not spent any monies.

       J.      Availability of the shoes of the defendant under the mark „NEW
               BALANCE‟, which it is not disputed, is similar if not identical
               to the mark of the plaintiff, thus has potential of putting off the
               intending consumers of the product of the plaintiff owing to the
               brand of the plaintiff being dented by the presence in the market
               of other products under a mark which can be confused with the
               brand of the plaintiff.

       K.      The difference in price, trade channels and class of consumers,
               all have capability of devaluing the brand / mark of the plaintiff.

       L.      The argument of the counsel for the defendant, that the product
               of the defendant is aimed at farmers, also does not cut ice
               inasmuch as though not visible from the brochure of the
               defendant filed by the defendant, Mr. Simarpreet Singh,
               Director of the defendant when appeared before this Court on
               22nd January, 2019 stated that the defendant embosses the mark
               „APEX NEW BALANCE‟ on its shoes though the same is not
               visible in the photographs thereof.       Mr. Simarpreet Singh,
               Director of the defendant however had carried with him samples
               of such shoes on which embossment of „APEX NEW
               BALANCE‟ was found to be prominent on the rims of the soles
               thereof. The brochure of the plaintiff shows the shoes of the
               plaintiff also bearing the mark „NEW BALANCE‟ on the

CS(COMM) No.850/2018                                                Page 13 of 18
                tongue and soles thereof. Moreover, once both the plaintiff and
               the defendant are in the business of manufacturing and
               marketing shoes, no restraint can be put on either, from
               manufacturing different varieties and classes of shoes and
               merely because the shoes of the defendant, as per the brochure
               of the defendant may today appear to be different from the
               shoes as found in the brochure of the plaintiff, is no ground to
               refuse interim injunction.

       M.      The class of consumers targeted by the plaintiff are prone to
               frequent travel to foreign territories where the plaintiff has been
               marketing its shoes and to buying the shoes of the plaintiff
               through    online   platforms.   Such     class   of     consumers,
               notwithstanding the sporadic sales before 2016 of the plaintiff
               in India, can be presumed to be aware of the mark of the
               plaintiff and the availability of shoes of the defendant under the
               said mark is capable of deception, confusion and dilution of the
               mark of the plaintiff. It is now well settled that local reputation
               is no longer the only consideration in determining goodwill and
               reputation. Brands, in today‟s context, can enjoy transnational
               repute, and advertisement in the media and on the internet is
               enough to secure repute even if the plaintiff‟s products are not
               being traded in the country in which it is seeking protection.
               Reference in this regard may be made to (i) N.R. Dongre supra;
               (ii) Jolen Inc. Vs. Doctor & Company (2002) 98 DLT 76; (iii)
               Milmet Oftho Industries supra; (iv) Cadbury UK Limited Vs.
               Lotte India Corpn. Limited 2014 SCC OnLine Del 367; (v)
CS(COMM) No.850/2018                                                  Page 14 of 18
                Neon Laboratories Limited Vs. Medical Technologies Limited
               (2016) 2 SCC 672; and (vi) H&M Hennes & Mauritz supra

       N.      The plaintiff thus has a prima facie case in its favour.

       O.      The hit which the brand / mark of the plaintiff is likely to take
               from the defendant, during the pendency of the suit continuing
               to sell the goods under the same mark, will be irreparable and
               any monetary compensation is unlikely to suffice. Once the
               consumers of the goods of the plaintiff switch to another brand,
               it will be an uphill task for the plaintiff to win them back. Thus,
               the element of irreparable injury is also satisfied.

       P.      I find the balance of convenience to be in favour of the plaintiff
               and against the defendant because if notwithstanding finding
               prima facie case interim injunction is refused and the defendant
               continues to sell the goods under the same mark, the defendant
               is also likely to, if ultimately restrained, suffer loss and injury.
               Moreover, the defendant though verbally is claimed to have
               sales of 32 lacs pairs of shoes under the mark „NEW
               BALANCE‟ has shied from pleading so in the written statement
               and has not pleaded in the written statement any particulars of
               the volume of its sales of shoes under the said mark, under the
               umbrella mark „APEX‟ and / or the expenditure if any incurred
               by the defendant on publicizing the mark „NEW BALANCE‟.
               The plea of the defendant is that it does not maintain accounts
               sub-mark wise. Thus, we have a mark pitted against a sub-
               mark, and the sub-mark is to give in.

CS(COMM) No.850/2018                                                  Page 15 of 18
     Q.     The balance of convenience is also found in favour of the plaintiff
           because there are on record, (i) a cease and desist notice dated 17th
           March, 2017 got issued by the plaintiff to the defendant; (ii) the
           response dated 18th April, 2017 of the advocate of the defendant
           thereto and in which the advocate for the defendant also stated that
           the defendant was "ready for an amicable settlement in the subject
           matter. The matter can be personally discussed in a joint meeting
           if so agreeable in order to avoid futile litigation"; (iii) a printout of
           e-mail dated 30th May, 2017 of the advocate for the defendant to
           the advocate for the plaintiff though "WITHOUT PREJUDICE"
           but referring to the meeting held on 16th May, 2017 and seeking to
           know whether the advocate for the plaintiff had "received any
           further instruction from your clients in regard to the settlement
           discussions, including the term of monetary compensation to our
           client"; and, (iv) the response dated 8th June, 2018 of the advocate
           for the plaintiff to the advocate for the defendant "vehemently"
           rejecting the suggestion of a monetary compensation to be given
           and reiterating the demand for immediate cessation of use of the
           mark „NEW BALANCE‟ by the defendant. Therefrom it prima
           facie appears that the defendant was willing for a monetary
           compensation to give up the use of the mark. The counsel for the
           defendant has of course tried to explain that it was in response to a
           proposal during the meeting of the plaintiff. However, from the
           tenor of the correspondence, it does not appear so. The e-mail
           dated 30th May, 2017 does not refer to any compensation offered
           by the plaintiff or a higher compensation demanded by the
CS(COMM) No.850/2018                                                 Page 16 of 18
            defendant. It is felt that if the defendant, for monetary
           compensation was willing to give up the use of the mark, the
           damage which the defendant will suffer from being restrained
           during the pendency of the suit from use of the mark can always be
           compensated in the event of the defendant ultimately succeeding in
           the suit.

    R.     It can safely be assumed that the defendant, at the time of applying
           on 13th April, 2000 for registration of the word mark „NEW
           BALANCE‟, must have conducted a search and would have come
           across the registration in favour of the plaintiff. The defendant
           even then did not take any steps to have the registration in favour
           of the plaintiff removed on account of non-user by the plaintiff of
           the mark. On the contrary, the defendant proceeded with its own
           registration and which has not been granted as yet. Resultantly, in
           the fight between a registered mark and an unregistered mark, at
           this stage the registered mark has to statutorily succeed.

    S.     The argument of the defendant of the plaintiff being not entitled to
           interim injunction on account of delay and laches is also not found
           to have any force. Owing to the said delay and laches, though ex
           parte injunction was not granted to the plaintiff, however the same
           cannot now at the „After Notice Stage‟, after the counsels have
           been fully heard, have any bearing. Reference in this regard can be
           made to order dated 21st October, 2016 in CS(COMM)
           No.1433/2016 and Ramaiah Life Style Café Vs. Eminent
           Entertainment 2017 (70) PTC 532.

CS(COMM) No.850/2018                                               Page 17 of 18
       T.      Observations in Toyota Jidosha Kabushiki Kaisha supra relied
              upon are in the context of passing off and not infringement.

14.        IA No. 6402/2018 thus succeeds. The defendant is restrained, during
the pendency of this suit, from using the mark „NEW BALANCE‟ and / or
any other mark similar or deceptively similar thereto, amounting to
infringement / passing off by the defendant of its goods as that of the
plaintiff under the mark „NEW BALANCE‟

15.        The defendant shall however have liberty to apply for grant of time to
enable it to inform its consumers of the new mark, instead of the mark „NEW
BALANCE‟.




                                                  RAJIV SAHAI ENDLAW, J.

JANUARY 23, 2019 „gsr‟..

(Corrected and released on 20th February, 2019) CS(COMM) No.850/2018 Page 18 of 18