Trademarks and Exclusive Rights: A shield against counterfeiting
Trademarks are vital in distinguishing your products and services from all other competitors in the market. A trade name, logo or tag line adds crucial value to your business and accentuates the uniqueness of your brand. Trademark registration goes a long way in establishing ownership and contributes to the identity of any brand. It can provide to be an invaluable asset that builds a direct relationship with the consumers through establishing their trust. The significance of trademarks has been demonstrated time and again through the course of several notable judgements. The judgement of Microsoft Corporation and Anr v. Vacation Rental Services Pvt Ltd and Ors. [CS(COMM) 158/2022 Delhi High Court] sets another brick in the wall of trademark protection.
Microsoft has emerged as a global name that has penetrated homes, offices, and organisations internationally. Since the adoption of its mark in 1975 and subsequent registration in 1984, its trademark established itself as a well-known trademark. Microsoft was recognised as a well-known trademark in the case of Microsoft Corporation v. Kurapati Venkata Jagdeesh Babu [2014 (57) PTC]. In the aforementioned case, the Delhi High Court examined the evidence with regard to the nature of Microsoft’s trademark. Thereon, they came to the conclusion that the evidence in favour of their trademark was sufficient in establishing the extensiveness of their reputation establishment through advertising and publicity in India. Using the same rationale, they held that the use of Microsoft’s trademark, including their name as well as trade style would vest with them and unauthorised use in both similar, as well as dissimilar businesses, would be prohibited.
With the establishment of a brand, the name and logo attract tremendous brand loyalty and goodwill. The connection that is built with consumers stretches to the point that the products associated with the trademarks are appreciated for their reliability and promise of quality. Several illegitimate market players, companies as well as individuals try to exploit the goodwill of legitimate brands by passing off counterfeit goods under the established brand marks. The case of Microsoft Corporation and Anr v. Vacation Rental Services Pvt Ltd and Ors. is a prime example of trademark infringement and passing off.
The Defendants in the case carried out sale transactions with invoices with the trademarks of Microsoft, including their brand name and logo. The invoices also contained other information including the address, that was indicative of the intention of the defendants to build a connection with the global giant, Microsoft. The defendants in the present case were found to have acted in consort, and also had a history of conviction in multiple criminal activities such as mass fraud and money laundering. The bench ruled in favour of the plaintiff, Microsoft and ordered an ex-parte ad-interim injunction against the defendants. The injunction was granted under the two-fold test including weighing the balance of convenience and acknowledging the irreparable loss caused to the plaintiff. Through the infringement of the plaintiff’s marks, the defendants exploited the exclusive rights of the trademark proprietor, that is, Microsoft as well as acted against the interests of the public at large.
Moreover, as explored through the length of the recent Delhi High court judgement, trademarks, whether enforced through the statutory rights enshrined under the Trade Marks Act, 1999 or through the inalienable rights which are eventually gained through the common law, can be used as a lethal weapon against the illegitimate wrongdoers who try to misrepresent themselves and deceive innocent members of the general public.
This case is a testimonial to the importance of trademark protection against infringers. It also highlights how, registered and well-known trademarks, as the intellectual property of the proprietor, provide the right of exclusivity to their rightful owners.
