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Mercantile Law
N R Dongre v. Whirlpool Corporation, (1996) 5 SCC 714
« »04-Jan-2024
Introduction
The case is related to the re-use of a trademark which is already attached to the goodwill and reputation of an entity.
Facts
- The Plaintiffs originally registered the "WHIRLPOOL" trademark for their electrical appliances, including washing machines, found that the Defendants later began using the same trademark for their washing machines.
- Furthermore, the Defendants managed to register this mark in their own name.
- In response, the Plaintiffs filed an original lawsuit against the Defendants, alleging a passing-off action.
- The Single Judge of the Delhi High Court issued an interim injunction, preventing the Defendants from using the trademark until the final resolution of the case.
- This decision was upheld by the Division Bench.
- The defendant then filed an appeal before the Supreme Court for interim injunction.
Issues Involved
- Whether a non-registered prior user of a trademark can obtain an injunction against a competing business that is the registered proprietor of the same or similar trademark in India?
- Whether Whirlpool was a well-known mark and had acquired a trans-border reputation?
Observation
- The Delhi HC's Single Judge and Division Bench both favored Whirlpool Corporation.
- The Whirlpool Corporation secured a temporary injunction due to presented documents affirming prior use.
- The Division Bench upheld this decision, emphasizing the petitioner's extensive pre-existing trademark use.
- Evidence of widespread advertisements in publications supported the conclusion that 'Whirlpool' attained recognition and goodwill in India.
- The Division Bench asserted that a trademark could extend beyond geographical boundaries through both importation and advertising.
- At the SC, the defendants, claiming registered ownership, argued for maintaining their trademark status as it is, during the passing-off action.
- However, the Supreme Court disagreed, noting irreparable harm to Whirlpool Corporations reputation and goodwill, given the long association of 'Whirlpool' with their products.
Conclusion
- Finding no compelling reasons to overturn the Delhi HC's decision, the SC ruled in favor of Whirlpool Corporation.