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Aktiebolaget Volvo v/s Gyan Singh

The case involves a lawsuit filed by Aktiebolaget Volvo and its affiliated entities (collectively referred to as "the plaintiffs"), which are Swedish companies engaged in the transportation and automotive sector, against Gyan Singh and another individual (referred to as "the defendants"). The plaintiffs sought a permanent injunction to restrain the defendants from infringing their "VOLVO" trademarks, passing off their goods as the plaintiffs', and other related relief.

The plaintiffs claimed that they held registrations for the "VOLVO" mark in India and various foreign countries and had established significant goodwill and reputation in their mark. The defendants were allegedly involved in the manufacturing and sale of bicycles bearing the mark "VOLVO." The plaintiffs contended that such activities by the defendants amounted to trademark infringement and passing off.

Procedural History:
The plaintiffs filed a suit seeking a permanent injunction against the defendants. The court granted an ex parte interim injunction in favor of the plaintiffs and appointed Local Commissioners to seize infringing goods. Subsequently, the plaintiffs filed an application to implead additional defendants, which was allowed, and an amended plaint was taken on record. The defendants no. 1 and 2 filed written statements, while the defendants no. 3 and 4 did not file any reply. The plaintiffs then filed an application seeking summary judgment, which the defendants no. 1 and 2 did not oppose.

Issues Presented:
The court addressed the following legal issues in its decision:
  1. Whether the defendants' use of the "VOLVO" mark on bicycles amounted to trademark infringement and passing off?
  2. Whether summary judgment should be granted in favor of the plaintiffs?

Rules of Law:
The court relied on the following legal principles and provisions:
  • Trade Marks Act, 1999 (India
  • Section 2(1)(zg) of the Trade Marks Act (definition of well-known trademarks)
  • Section 29(6) of the Trade Marks Act (definition of trademark use)
  • Order XIII-A of the Code of Civil Procedure (CPC) (summary judgment in commercial disputes)
  • Rule 27 of the Intellectual Property Division (IPD) Rules (application of summary judgment to IP disputes)
Analysis and Reasoning:
The court analyzed the evidence provided by the plaintiffs, including their trademark registrations, the defendants' activities, and the reports of the Local Commissioners. The court found that the defendants were using the mark "VOLVO" on bicycles, which was identical to the plaintiffs' registered mark.

It determined that the defendants' actions constituted trademark infringement and passing off, as they misled customers and caused dilution of the plaintiffs' reputation and goodwill. The court also noted that the defendants' use of the mark extended to advertising and offering the products for sale. It concluded that the defendants had no reasonable prospect of success in the suit and that summary judgment was appropriate.

Holding and Decision:
The court granted a decree of permanent injunction in favor of the plaintiffs, restraining the defendants from using the mark "VOLVO" in connection with their products. The court also awarded damages and costs to the plaintiffs. The defendants no. 3 and 4, as manufacturers and suppliers of the infringing goods, were ordered to pay Rs. 6,50,000/-, while the defendants no. 1 and 2, as sellers of the goods, were ordered to pay Rs. 3,50,000/-.

Implications and Significance:
The court's decision reinforces the protection of well-known trademarks and emphasizes the consequences of trademark infringement and passing off. It highlights the importance of trademark owners' rights and the need to deter unauthorized use of their marks. The case also underscores the availability of summary judgment in intellectual property disputes, allowing for a quicker resolution of clear-cut cases.

Conclusion:
The High Court of Delhi granted a permanent injunction to Aktiebolaget Volvo and its affiliates, prohibiting the defendants from using the "VOLVO" mark on bicycles. The court found the defendants' actions to be trademark infringement and passing off, as they caused confusion among consumers and dilution of the plaintiffs' mark. The decision reaffirms the protection of well-known trademarks and highlights the court's willingness to grant summary judgment in appropriate cases.

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